Together Funding Establishes New 'P2P Accounting Standards'

[Asia Economy Reporter Song Seung-seop] Together Funding announced on the 14th that it has established new accounting standards for the P2P (peer-to-peer) industry.

The P2P industry is typically composed of a platform company and a subsidiary that executes loans. Until now, the loan receivables of the subsidiary have been included as an ‘asset’ item of the subsidiary.

Under the newly established standards, loan receivables are removed from the asset items in the accounting books. This is explained as being consistent with the definition of a P2P platform, since the loans are not the company’s assets but bonds purchased by investors. However, fee revenue generated from loan receivables is recorded, and the loan amount is separately disclosed.

The new standards were established during the transition to K-IFRS accounting standards. Together Funding switched its accounting standards from the previous K-GAAP to K-IFRS when preparing its audit report last year. At that time, it formally requested an opinion from the Korea Accounting Standards Board, which is responsible for accounting standards, and after about six months of review, received the opinion to remove the subsidiary’s loan receivables from asset items.

A representative from Together Funding explained, “Since it is necessary to closely examine individual transaction structures, this cannot be applied to all P2P companies,” but added, “Considering the meaning of mediating peer-to-peer transactions, we judged it to be reasonable.” They also added, “As this is the first case of adopting K-IFRS, we applied it after sufficient review.”

Together Funding CEO Kim Hang-ju emphasized, “With the establishment of accounting standards, we are able to provide reliable information to investors,” and added, “We will strive to lead the P2P industry and earn investors’ trust.”

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