The ratio of Korean companies who have started the transition process to IFRS has increased significantly from 26.5% in January, 2009 to 75.1%, finds a survey conducted by the Financial Supervisory Service (FSS). The comparable figure is 66.1% for SMEs with less than 100 billion won in assets.
The FSS asked 1,925 companies which are required to adopt IFRS about the impact of the IFRS use, their preparation and their concerns in January, 2010. This is the second survey after the first one was conducted in January, 2009.
Of those who haven’t initiated the transition process yet, 93.9% are planning to take steps early half of this year. To help them fully prepared for IFRS adoption, swift action and management leadership are needed, says the FSS.
The FSS plans to strengthen assistance activities to make sure that companies can make a smooth transition to IFRS as Korea plans to make a full transition to IFRS next year.
As part of these efforts, the FSS will identify companies which haven’t initiated a transition process based on the surveys and statutory financial filings and monitor their progress going forward.
Also, in cooperation with related agencies including the Korea Listed Companies Association, the FSS will provide customized training to meet the needs of consumers, covering industry- specific accounting issues, IFRS adoption best practices and consolidated financial statements preparation.
The FSS says it will also strive to amend IFRS related regulations and laws in a timely manner including regulations on listing, disclosure and monitoring of financial soundness of financial companies. At the same time, by initiating the IFRS preclearance program, it will strive to help companies address challenges they face in adopting IFRS, rule-based regulations.