• The Journal of the Korea Contents Association
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• v.8 no.3
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• pp.215-224
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• 2008

For global companies that are going to raise funds from international capital markets or to which lots of foreign investment are being given, it is necessary to prepare consolidated financial statements. This study provides the results of some analyses in accordance with the system of consolidated financial statements disclosure. First, disclosing those statements with audit opinion reflected would provide useful reliable and financial information. Second, such disclosure as foresaid would meet international standards that consolidated financial statements are used as main financial statements and separate financial statements as auxiliary ones. The disclosure system would make it possible for domestic corporations to introduce international accounting standards earlier, especially from 2009, in accordance with the road map of those standards. Third, the system of consolidated financial statements disclosure would play an important role in promoting the implementation of consolidated taxation systems under which corporate tax is levied in accordance with consolidated balance sheet.

• Management & Information Systems Review
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• v.8
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• pp.167-186
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• 2002

Since first introduced on July 1974, consolidated financial statements had been concluded or not depending on decision-makings by companies. But the Securities and Exchange Law as revised on April 1992 specified that any listed corporation must add consolidated financial statements and their auditor's opinion to its business report. foreign-based corporations became subject to the conclusion of the sheets and equity method from the time of business closing on Dec. 1995. Now all of domestic and foreign-based corporations, whether they are controlling or controlled businesses, are subject to consolidated financial statements. Business bankruptcies and restructuring under the economic crisis since the late 1997 raised the necessity of the increased reliability and transparency of consolidated accounting information and significantly changed contents of consolidated audit report. An analysis over the past three years shows that auditor's opinions about consolidated financial sheets are mostly qualified opinions whose proportion is being gradually decreased, while rejected opinions are annually increasing in proportion. When compared to the year of 1998, the numbers of those controlled businesses, and companies under the equity method were all decreased, but rather increased when determined on the basis of such numbers per a corporation. This suggests that corporations are promoting business diversification through business separation and share acquisition and advancing into foreign markets as well as domestic ones. Especially, special contents included in consolidated auditing report show a tendency to increase annually. Based on all these findings, the strengthening of accounting regulation will lead to providing more reliable information related to auditor's opinion about consolidated financial statements and raising the information effectiveness and validity of the statements as publicly notified.

• The Journal of the Korea Contents Association
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• v.20 no.10
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• pp.750-759
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• 2020

This study examine the relation between additional disclosure information of external audits details on consolidated financial statements, audit hours, and audit fees. The results of the analysis of listed companies that disclosed consolidated financial statements from 2014 to 2016 are as follows. First, the additional disclosures of the consolidated financial statements external audit is positively associated with the audit hours of the auditor. This result can be interpreted that the additional disclosure of the consolidated audit information is based on the incentive to provide useful information of auditor. Second, the audit fees of the auditors for additional disclosures in the consolidated financial statements were not significantly related. This suggests that, the additional disclosure of the consolidated audit practice is not based on the auditor's perception of the audit risk. This study provides that information on the external audit details of audit reports and consolidated audit reports is distinguished and disclosed, providing useful information to researchers. In addition, this study suggests policy implications by demonstrating that disclosure of the details of the external audit of the consolidated financial statements is based on the auditors' incentive to provide useful information.

• Journal of the Korea Society of Computer and Information
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• v.3 no.2
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• pp.209-216
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• 1998

The Korean economy has been under the IMF-led rescue programs since the late 1997. For the transparency of financial currency, Korean government had made the Korean firms which are depend on each other financially compose the consolidated financial statements since 1985, because South Korea's financial crisis has been caused by a string of corporate failures that have put enormous strain on the banking system at a time when the won was plunging against the dollar. But there are many problems to get the transparency in the actions and accountability of both public and private institutions, because of the domestic corporations' structural characteristics and the law of accounting. This paper reviewed, therefore, some problems on the consolidated financial statements and advantages to introducing the combined financial statements through comparing the contents of those statements

• Asia-Pacific Journal of Business
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• v.11 no.1
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• pp.167-183
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• 2020

Purpose - The purpose of this study is to achieve effective system improvement and operation methods for the improvements on the ability of firms'preparation of the financial statements Design/methodology/approach - This study conducts a survey of not only the accounting staff but also accounting specialist such as CPA or CTA. Findings - For the improvements on the ability of firms'preparation of the financial statements, comprehensive improvement in accounting education is needed as follows. First, the focus of accounting education should be converted to the consolidated financial statements, case study and analysis of accounting standards. Second, Financial Supervisory Service and Korea Accounting Institute in cooperation with accountancy firm need to create an accounting education program. Third, the focus of accounting education should be converted to consumer oriented education by providing accounting knowledge with various methods of teaching. Fourth, this study suggests the creation of the committee on Accounting Education. Research implications or Originality - As a result of the incorrect practice of firms'relying on auditors to prepare the financial statements, social concerns about the reliability of accounting information are raised because the incorrect practice decreases the auditor's independence and weaken the auditor's ability to verify accounting information. Therefore, this study analyzes the current status of auditors'preparation of the financial statements.

• Management & Information Systems Review
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• v.6
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• pp.137-162
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• 2001

Our business conglomerates are sharing their fates economically because of mutual debt warranty among their own affiliates and excessive financial loans. For this reason, it is inevitably restrictive to obtain the whole information on such conglomerates by individual and consolidated financial statements. To solve this problem, the system of combined financial statement was introduced through modifications of the Act of the outside audit of corporations in 1988. As a result, 15 out of this nation's 30 major business conglomerates prepared and submitted their own combined financial statements. In this paper, all financial statements are grouped into financial and non-financial parts, based on characteristics of business control and combined financial statement. Then the business size, financial rate and internal transactions for each of the conglomerates are analyzed, based on which problems of the combined financial statement as announced publicly are clarified. For the system, this study suggests improvement points such as a sufficient publication of any possible situations and interest coordination caused between the date of business settlement and that of preparing combined financial statements by applying principles of sharing to the evaluation of valuable instrument papers for investment and by determining the amount, 5% accounting for the total amount of debt warranty, foreign exchange assets and debts.

• Asia pacific journal of information systems
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• v.10 no.3
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• pp.121-143
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• 2000

The enterprise resource planning(ERP) system becomes more popular as a vehicle of realizing an integrated information system, because this system not only facilitates the reengineering of processes in a firm but also provides the function of generating consolidated financial statements. However, ERP vendors have unsuccessfully provided methodologies on the customization of ERP packages although one of the important issues during the implementation of an ERP package is how to customize it. The purpose of this paper is to build a strategy on the successful customization of ERP packages. The result from the analysis of interviews with 25 consultants and experts in the ERP field recommends 14 customization strategies of an ERP package in the four areas of a firm: management, technology, organization, and environment. The analysis of the feedback from the consultants and experts generates the ranking of the 14 customization strategies.

• Korean Management Science Review
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• v.15 no.2
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• pp.83-90
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• 1998

Today, ERP becomes very popular as a vehicle of implementing an integrated information system since this package not only facilitates reengineering but also provides the function of generating consolidated financial statements. Yet a successful introduction strategy on the integrated information system needs to be set up because ERP has weaknesses as well as strengths. The strengths include the prompt reaction to environmental changes, the integrated management of information, the adoption of open systems, and the selection of modules according to functionsl However, the weaknesses of ERP include the provision of only basic functions, the development of package on international standard processes, and possible disadvantages to small and medium-sized firms. This paper is to suggest recommendations on the implementation strategy of ERP as an integrated information system. According to the case study with Firm A that has successfully implemented an ERP package, the most significant advantage of adopting ERP was that Firm A was able to implement an integrated information system for only six months. Finally, this research generates suggestions, such as the importance of the project team structure, the sufficient amount of time for education, and the minimization of the package modification.

• The Journal of the Korea Contents Association
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• v.17 no.10
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• pp.343-359
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• 2017

This study aims to analyze the government accounting system of South Korea on the institutional complex and institutional congruence of new institutional theory and suggests policy reform for the system. I researched the literatures on the national and local accounting system and compiled research materials from the Ministry of Strategy and Finance, the Ministry of Interior and Safety, the Board of Audit and Inspection, and Government Accounting and Finance Statistics Center websites. Analysis showed that the government accounting system consists of various elements in institutional complex and the congruence level of national and local accounting system of South Korea is low in production, disclosure, and application of information. The suggestions of this study include: introducing accounting position recruitment, adopting government audit system, and improving cooperation between national accounting organizations and local accounting organizations for reliable information production; disclosing real time information and revealing information linking national and local accounting for transparent information disclosure; educating information user, providing accurate cost and available financial analysis indicators, introducing chief financial officer, and expanding range of consolidated national financial statements for information application.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.7 no.2
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• pp.113-127
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• 2012

From the end of 1st quarter of 2012, Korean mandatory firms had started releasing financial reports conforming to the K-IFRS(Korean adopted International Financial Reporting Standards). Major characteristics of IFRS, such as 'principles based' features, consolidated reporting, 'fair value' measurement, increased pressure for non-financial disclosures have resulted in brief and various disclosure practices regarding the main body of each statements and vast amount of note description requirements. Meanwhile, a host of previous studies on IFRS disclosures have incorporated regulatory and/or 'compete information' perspectives, mainly focusing on suggesting further enforcement of strengthened requirements and providing guidelines for specific treatments. Thus, as an extension of prior findings and suggestions this study had explored to conduct an integrative approach embracing views of the reporting entities and the users of financial information. In spite of all the state-driven efforts for faithful representation and comparability of corporate financial reports, an overhaul of disclosure practices of fiscal year 2010 and 2011 had revealed numerous cases of insufficiency and discordance in terms of mandatory norms and market expectations. As to the causes of such shortcomings, this study identified several factors from the corporate side and the users of the information; some inherent aspects of IFRS, industry/corporate-specific context, expenditures related to internalizing IFRS system, reduced time frame for presentation. lack of clarity and details to meet the quality of information - understandability, comparability etc. - commonly requested by the user group. In order to improve current disclosure practices, dual approach had been suggested; Firstly, to encourage and facilitate implementation, (1) further segmentation and differentiation of mandates among companies, (2) redefining the scope and depth of note descriptions, (3) diversification and coordination of reporting periods, (4) providing support for equipping disclosure systems and granting incentives for best practices had been discussed. Secondly, as for the hard measures, (5) regularizing active involvement of corporate and user group delegations in the establishment and amendment process of K-IFRS (6) enforcing detailed and standardized disclosure on reporting entities had been recommended.