Abstract

This study attempts to evaluate the corporate and financial institution restructuring policies adopted by the government since the 1997 IMF crisis from an accounting perspective. The research methodology includes a conceptual review of corporate restructuring and an empirical study based on a survey of accounting and tax professionals, including corporate employees, government officials, and accounting experts. The results are as follows: First, regarding accounting reform, the mandatory adoption of consolidated financial statements and the equity method were expected to have significant restructuring effects in the accounting measurement sector. In the accounting reporting (disclosure) sector, the strengthening of related-party transaction disclosures was highlighted, while in the audit system reform sector, the expansion of outside directors and auditors, and in other related reforms, the clarification of controlling shareholders' responsibilities were identified as having high restructuring effects. Second, in the analysis by occupation, government officials and accounting experts generally held higher expectations than corporate employees, although there were differences by item. Notably, regarding items directly affecting them, such as mandatory liability insurance for accounting firms, accounting experts showed lower expectations while corporate employees showed higher ones. Third, regarding the length of career in accounting and tax, long-term professionals held higher expectations for the reform of other related systems compared to short-term professionals. Fourth, while there were generally no differences based on experience with restructuring tasks, conflicting perceptions were observed in three specific items, such as the improvement of the external auditor appointment method. Fifth, regarding specific aspects of merger and acquisition accounting, there was a consensus that accounting treatments should follow accounting standards, particularly concerning the conflict between accounting standards and commercial/tax laws regarding negative goodwill and merger gains, although differences in perception remained regarding the abolition of the pooling-of-interests method and corporate valuation standards during mergers.

Keywords

• Restructuring
• Corporate Restructuring
• Accounting for Restructuring Support
• Merger
• Division

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