ATJ Asian Tax Journal

Asian Tax Journal

Print ISSN 1738-3323 Online ISSN 2733-9270

For the Protection of Investors in the Film Culture Industry Measures to Improve Accounting Disclosure

  • Ga-hee Lee Hankuk University of Foreign Studies
  • Jae Ick Song Dongguk University
  • Yunsung Koh Hankuk University of Foreign Studies

Asian Tax Journal Vol. 24 No. 2 (2023), pp. 9-37

Abstract

The purpose of this study is to suggest the measures to improve accounting transparency for protecting investors in the film culture industry. As the scale of capital inflow and outflow of the film culture industry increases, the number of investors and stakeholders who require accurate accounting information for the film culture industry has been increasing. However, an awareness of the importance of accounting information and the related research for the film culture industry is highly lacking and since The Korean Film Council developed the 「Accounting Standards for Film and Culture Industry」 in 2004. There has been no further revisions made. Therefore, this study analyzed the disclosed accounting information of 5 domestic listed companies that comply with the Korea International Financial Reporting Standards (K－IFRS) and investigated each accounting treatment. It was also compared to the accounting treatment standard proposed by the Korean Film Council. The accounting treatment of the film culture industry was reviewed, and the measures to improve accounting transparency for protecting investors in the film culture industry were suggested. The way of achieving purposes of this study is to revise the accounting treatment standard for the film culture industry and implement correct accounting, such as revenue recognition, uniformity of account items, inventory recognition standards, and cost of sales according to the progress. In addition, it is necessary to offer accounting guidelines for the specific industries such as the film culture industry in which there are many small businesses and lack of professional accounting manpower. As an improvement plan for the disclosure, it is requisite to find a way to provide ease and consistent information for the external information users. Furthermore, a distribution of guidelines and education should be provided continuously and steadily for professional practitioners in charge of writing financial statements in the film culture industry companies.

Keywords

  • Film and Culture Industry
  • Accounting Transparency
  • Accounting Guidelines

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