Abstract

Since announcement of Roadmap on the adoption of the International Financial Reporting Standardsin the Republic of Korea (“K－IFRS”), many companies had faced a number of questions in thepreparation for transition from existing accounting standards (“K－GAAP”) to K－IFRS. Under KGAAP,the Financial Supervisory Service (“FSS”) and the Korean Accounting Institute (“KAI”)presented detail accounting treatment on the specific circumstances through the formal response oninquiry and interpretations, but the International Financial Reporting Interpretations Committee(“IFRIC”) had announced only a mere 20 interpretations, thus, a lot of companies are very hard toobtain the guideline of those specific accounting matters. In this situation, the discussion on thoseaccounting matters was made in the private sector including so－called Big 4 Accounting Firms andwith the public sector including the FSS and the KAI. This study analysed the different views of the Big 4 Accounting Firms in the interpretation of K－IFRSand the impact of the different views on the financial statements using some cases. It is not for adetermination of right and wrong, but demonstrating the possibility of existence of different views. This study provided the insight, theoretical background and the impact on the financial statements ofthe items described unclear in the K－IFRS through the analysis of different views of the accountingfirms, which would impact on the selection of accounting treatment of the companies and position ofregulatory body. In addition, this study analysed the different views of the accounting firms sinceadoption of K－IFRS until nowadays, it can also provide indirect clue which views are reflected inthe financial statements. K－IFRS consists of several standards and interpretations, however, this study focused on differentviews of accounting firms in revenue recognition and income taxes items only. Thus, a lot of areas,other than revenue and income tax, could be a good subject of further research. Different views of each accounting firms have their own theoretical background, and globalaccounting markets are led by Big 4 accounting firms. In this situation, harmonizing the differentview of each accounting firm is the main concern on enforcing more countries to adopt the highquality global single accounting standards. This study has the value on this point.

Keywords

• K－IFRS
• Accounting Firms
• Different View
• Revenue
• Income Taxes

Related Articles

• The Information Role of the Increase of Net Deferred Tax Liabilities as Measure of Firm’s Tax Benefits28)

  Youngdo Hong

  16(3) 101-135

  Abstract Full Text for PDF

• Evaluation of 2010 Tax Reform according to IFRS Adoption in Korea

  Tae Sup, Shim

  12(1) 45-87

  Abstract Full Text for PDF

• A Study on National Institutional Characteristics and Corporate Social Responsibility

  Ye Ji Lee , Kyung Yeop Baek

  27(2) 43-65

  Abstract Full Text for PDF Full Text for XML

• How to Revise Tax Laws to Reasonably Calculate the Education Tax Base of Long-term Non-life Insurance Contracts Based on the Critical Review on a Recent Supreme Court Case

  Byung Wook Jun

  27(2) 181-205

  Abstract Full Text for PDF Full Text for XML

• The Impact of Changes in Dividend Record Dates on Market Reactions to Dividend Announcements

  Junyong Shim , Woojune Jung

  27(2) 359-387

  Abstract Full Text for PDF Full Text for XML