South Korea’s Journey towards ifrs a study from historical perspective
tarix 12.12.2017 ölçüsü 474 b. #34553
A study from historical perspective By Qiong Qin
Map of Korea Today Area - Total 99,646 km² (108th) Capital : Seoul Population: 49,024,737 (25th) GDP : $1.180 trillion (11th) Per capita: $24,200 (34th)
From Nobody to a World Leader Korea was one of the least developed countries in terms of industrial development in early 60s. It has been transformed into one of leading industrial countries in the world during the last 40 years.
A poor country just after Korea war (1950~53)
Korea’s Economic Miracle
Miracle that make Korea an Asian Tiger
Three Milestones towards Miracle Implication on current translation Prospective and Challenges Conclusion
Export-Oriented Economy Korea's industrial development has been achieved through export-oriented strategies. During 1960s and 1970s, the period when Korea accomplished the development of major industries, export growth outpaced GDP growth.
IT Flattener through Globalization At the start of the 21st century, South Korea predicted that the IT industry would boom and become very important in the 21st century.
Korean’s commitment to R&D
Success Story of IT in Korean
IFRS: Opportunities and Challenges
Korea Accounting Standards Board (KASB) is largely consistent with IFRS. The Korean Financial Accounting Standards (KFAS) are largely consistent with IFRS. The accounting standard-setters need to make further efforts to remove discrepancies between the local accounting standards and the IFRS.
Efforts towards IFRS (briefly) In light of the 1997 Asian financial crisis, South Korea's corporate culture increases the transparency The government is realizing that partial adoption of the IFRS standard is inadequate to ensure confidence in South Korea’s system Financial reporting under IFRS will be made mandatory for all listed companies, annouced on March 15, 2007
Money is called Won Exchange rate is about 1000 to 1
Implication of Appreciation Won appreciated 15% against the USD in 2004, followed by 2.3 percent in 2005 Appreciation in currency is a good sign of competitiveness and strength.
Prospects for Harmonization To embrace the globally accepted accounting standard , South Korea should establish comparable, reliable and the transparent corporate financial reporting. The IFRS also requires fully-aligned, harmonized and consistent rules for consolidated financial reporting accounting.
Final Remark Korea emerges as a “tiger” of Asia Three milestones cultivate the need for IFRS adoption in Korean. Influence of current translation amplifies with globalization and flattening
Acknowledgment
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