Abstract

When the fiscal year of a public institution is ended, it is required to prepare financial statements for the fiscal year and disclose them to the public by the individual public institution unit or the specific item through the system of Alio. However, the aggregate financial reports of public institutions are not disclosed to the public but are reported only to the National Assembly. As a result, there is a potential risk that the public accounting responsibilities of the government and public institutions may not be faithfully fulfilled in the sub－agent structure of the people－government－public institution. This study reviewed the aggregate reporting of public corporations and quasi－governmental institutions in fiscal year 2020 from the perspective of previous studies, and analyzed the OECD guidelines for aggregate reporting of public institutions and cases in major countries. By doing these, issues in aggregate financial reporting of public institutions were identified, and various policy suggestions for improvement were presented. The implications identified through the analysis are as follows. First, it is necessary to disclose aggregate reporting of public institutions to the public by referring to the OECD guidelines and cases of major countries. Second, it is worthwhile to use graphs, figures, and tables in order to enhance readers’ understandability of aggregate reporting while avoiding explaining excessively detailed items in the reporting. Third, it needs to provide the financial information of aggregate reporting mainly on key matters in accordance with the OECD guidelines and makes it possible for readers to check the detailed information in the publicly disclosed data released by an individual institution. Fourth, it should be considered to provide aggregate information by group after categorizing public institutions according to specific criteria. Fifth, it is necessary to provide the overall performance of an individual institution just at a glance by limiting the information of each institution to no more than one page. Finally, it needs to introduce a public report that clearly explains the core performance of public institutions for the public, separate from the aggregate reporting submitted to the National Assembly. In this study, various policy suggestions were made to expand aggregate financial reporting to the general public, and to deliver financial information that meets the public’s information needs in an easy－to－understand manner in line with the public's eye level. This study is expected to contribute to the fulfillment of public accounting responsibilities of the government and public institutions, which are agents in the sub－agent structure of the people－government－public institutions.

Keywords

• SOE
• Aggregate Accounts
• Aggregate Financial Reporting
• OECD Guidelines

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