Abstract

As one of the accounting reforms, financial reporting on consolidated basis will become mandatory from 2008. More specifically, Korean firms with total assets over ￦2 trillion are required to present their financial statements on the consolidated basis from the first quarter of 2008. Financial reporting on the consolidated basis has already been mandatory in the US, Japan and EU. Not without objections by some stakeholders including industry, consolidated financial reporting will replace individual financial reporting eventually, because 1) it enhances the usefulness of accounting information by providing more accurate information on the economic entity, and 2) it conforms to the international accounting standards. In order for the consolidated financial reporting to be adopted in its entirety, some issues are to be addressed and resolved；that is, determination of the scope of disclosure of individual financial statements, preparation and review of quarterly and semi－annual consolidated financial statements, abolition of combined financial statements, and amendment and supplementation of the current accounting standards. As an effort to provide solution to the issues, this paper provides discussions and suggestions based on the in－depth interviews with accountants, financial analysts, CPAs and academicians. <Key words> Consolidated Financial Statements, Consolidated Financial Reporting, Interim Reports,Conformity with International Accounting Standards, Usefulness of Accounting Information.

Keywords

• Consolidated Financial Statements
• Consolidated Financial Reporting
• Interim Reports
• Conformity with International Accounting Standards
• Usefulness of Accounting Information

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