Abstract

This study aims to bring forward problems and suggest solutions as venture capital firms prepare for the implementation of the Korean version of the IFRS (International Financial Reporting Standards). First of all, regarding fair value determination, it will be desirable to have clear guidelines as to what the valuation standards are and how to apply the new valuation methods. Secondly, rather than having a third parties such as accounting firms or credit rating firms conduct the fair value determination, it will be cost advantageous and more effective to have the venture capital firms conduct the valuation themselves. Thirdly, there are contradictory opinions regarding whether venture capital firms actually control their venture capital funds or not. Therefore, it is important to have an official standard that either includes or doesn't include such funds into the consolidated financial statements. Lastly, if Venture Capital firms are to perform their own fair value determinations, they will need to strengthen their workforce through a regulatory valuation system that will maintain a high level of integrity. This research collected a wide range of opinions from people within the industry, and aims to suggest possible improvements about the valuation of investment assets for venture capital.

Keywords

• International Financial Reporting Standards(IFRS)
• K-IFRS
• Venture Capital
• Valuation
• Fair value

Related Articles

• The Effect of the Fair Value Model under IFRS on Tax Reconciliation

  Hyun-Geol Shin , Jae Yeon Jeong

  10(4) 43-73

  Abstract Full Text for PDF

• Does Full Adoption of International Financial Reporting Standards Enhance Information Usefulness of the Notes to the Financial Statements?

  Seong, Yun-Seok

  22(6) 75-112

  Abstract Full Text for PDF

• The Effect of the Information Content of Earnings after Mandatory IFRS Adoption on Financial Analysts’ Earnings Forecast Accuracy

  Jong-Il Park

  19(3) 119-163

  Abstract Full Text for PDF

• Research on Selective Disposal of Available for Sale Securities under K－IFRS

  Park, Hyun-Jae

  19(2) 111-138

  Abstract Full Text for PDF

• The20)Effect of Mandatory Adoption of K－IFRS on Relative Value Relevance of EPS －An Comparative Analysis of Consolidated, Separate, and Individual Financial Statements－

  Sung-Ho Choi

  17(3) 89-126

  Abstract Full Text for PDF