FSS "Additional Cases Released to Support Corporate Accounting Competency"

[Asia Economy Reporter Minji Lee] The Financial Supervisory Service (FSS) has additionally disclosed companies' inquiry and response contents to support their K-IFRS accounting processing capabilities and to enhance accounting standards understanding among accounting information users.

[Image source=Yonhap News]

On the 29th, the FSS selected topics from K-IFRS responses between 2011 and 2015 that could assist in applying accounting standards, and disclosed 29 cases including △13 cases on financial instruments, △3 cases on share-based payments, △3 cases on fair value measurement, △4 cases on consolidated financial statements, and △2 cases on investments in associates and joint ventures.

For example, a bank inquired whether it could remove non-performing loans from its balance sheet after transferring them to Fund A under an asset transfer agreement, despite uncertainty about whether the risks and rewards of ownership of the non-performing loans had been transferred. In response, the FSS stated that if the bank neither retains most of the risks and rewards of ownership nor transfers them to Fund A, and Fund A controls the purchased non-performing loans, the bank can remove the transferred non-performing loans from its balance sheet.

An FSS official said, "To improve accounting information users' understanding of K-IFRS, we will provide inquiry and response cases regularly every year," and added, "We plan to offer online education on the disclosed inquiry and response cases in consultation with related organizations such as the Korea Listed Companies Association, KOSDAQ Association, and the Korean Institute of Certified Public Accountants."

This content was produced with the assistance of AI translation services.