The Korea Accounting Institute (KAI) has carried the responsibility for matters relating to accounting standards since the Financial Services Commission (FSC) devolved the duty of setting, amending and interpreting accounting standards on the Korea Accounting Standards Board (KASB) nested within the KAI in accordance with the Act on External Audit of Stock Companies and Enforcement Decree of the Act.
In 2011, Korea adopted IFRS in full to enhance its accounting transparency, thereby resolving the so-called Korea Discount. To systematically analyse whether the initially proposed goals of IFRS adoption have been achieved after five years since the adoption and to identify future tasks from a comprehensive point of view, the KASB requested an external team comprised of Prof. Wonsun Baek of Sung Kyun Kwan University and Prof. Do-Jin Jung of Chung-Ang University to carry out a qualitative research project which includes in-depth interviews and surveys of entities, auditors, regulators, standard-setter and academics on the economic impact of IFRS adoption.
While there have been a number of literature reviews and empirical analyses (quantitative research) on the economic effect of IFRS adoption, qualitative research has rarely been performed. I believe this qualitative research study carefully analyses the relationship between IFRS adoption and Korea’s accounting transparency from a more macroscopic and multilateral point of view using in-depth interviews with various expert groups and sets out the implications and improvement measures thereof.
You can find this research paper on the KASB’s website (www.kasb.or.kr). If you have any comments on the paper, please send them to the KASB by mail or email to email@example.com. We would be grateful to reflect your comments in the future policies for facilitating effective IFRS implementation and operation.
Lastly, please note that the views expressed in this paper are those of the researchers specified above and do not necessarily represent the official views of the KAI or KASB. Also, I would like to express my sincere appreciation to all those who were involved in this research project for all their effort and passion.
Jee In Jang, Ph.D.
Chair and CEO
Korea Accounting Institute
Korea Accounting Standards Board