Nation's Financial Status 'At a Glance'... National Settlement Report Financial Statements Reorganized from 2025

[Asia Economy Sejong=Reporter Son Seonhee] From now on, a cash flow statement will be newly established in the national settlement report. The existing statement of financial position and statement of financial operations will be completely revamped to make it easier for the public to understand.

On the 16th, the Ministry of Economy and Finance held the 32nd National Accounting System Deliberation Committee chaired by Kim Yoonsang, Director General of Fiscal Management, and deliberated and approved the "National Settlement Report Revamp Plan" with these contents. The Ministry explained that the revamp was initiated due to the perception that the financial statements contained in the existing national settlement report, marking 10 years since the introduction of accrual accounting, are complex, extensive, and written mainly in technical terms, making it difficult for the general public to understand.

This revamp plan focuses on the reorganization of financial statements within the national settlement report. Among the financial statements, the statement of financial position and statement of financial operations will be completely revamped, and a cash flow statement will be newly added to the financial statements. In addition, explanatory materials for financial statements, which were dispersed across notes, essential supplementary information, and annexed schedules, will be unified into notes and the scope of preparation will be expanded.

In particular, a "cash flow statement" that aggregates national cash flows into operating, investing, and financing activities was introduced. Previously, when a global surplus occurred, it was simply shown as an increase in cash accounts, but the cash flow statement distinguishes increases and decreases by each fiscal activity, providing information on whether the cash flow is sound or accompanied by future expenditure obligations.

The announced revamp plan will undergo follow-up foundational work such as the enactment and revision of national accounting laws and accounting treatment guidelines, and the revamp of the D-Brain system, and is scheduled to be applied from the fiscal year 2025 settlement and submitted to the National Assembly.

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