FSS "Delaying Implementation of XBRL Financial Disclosure for Small and Medium Listed Companies"

Detailed XBRL Note Disclosures Temporarily Eased to Annual and Semi-Annual Reports Only
Mandatory Submission Deadlines Deferred by 1 to 2 Years for Listed Companies with Assets Under 200 Billion KRW

The financial authorities have decided to temporarily ease the frequency of detailed disclosures of international standards (XBRL) notes, which will be applied from the 2025 business reports, for non-financial listed companies with assets under 500 billion KRW, reducing it from the existing four times a year (quarterly) to twice a year (semi-annually). For listed companies with assets under 200 billion KRW and 100 billion KRW, the mandatory submission deadlines originally set for March 2026 will be postponed by one to two years, respectively.

The Financial Supervisory Service (FSS) announced on the 8th that it has prepared a 'Smooth Landing Plan for XBRL Note Financial Disclosures for Small and Medium-sized Listed Companies', judging that confusion may arise as the number of listed companies newly subject to XBRL note financial disclosures starting from the 2025 business reports is expected to surge.

Accordingly, listed companies with assets under 500 billion KRW can apply XBRL note disclosures on a semi-annual basis instead of quarterly. Until the end of 2028, quarterly reports only need to generate a table of contents using block tagging with the XBRL authoring tool. From 2029 onwards, disclosures will revert to quarterly. Initially, all listed companies were scheduled to apply XBRL note disclosures starting from the 2025 business reports submitted in March 2026.

The FSS explained, "Since approximately 1,800 newly applicable listed companies are expected, this measure aims to minimize potential confusion and ensure the successful establishment of XBRL financial disclosures," adding, "the frequency of detailed XBRL note disclosures will be temporarily eased to semi-annual (twice a year) to align the submission timing with that of audit reports."

Additionally, the FSS subdivided listed companies with assets under 500 billion KRW into three groups and differentiated the mandatory XBRL note disclosure deadlines accordingly.

First, for listed companies with assets between 200 billion KRW and 500 billion KRW (Group 1), about 550 companies, the existing schedule remains unchanged, requiring submission of the 2025 business reports with XBRL note disclosures by March 31, 2026.

For listed companies with assets between 100 billion KRW and 200 billion KRW (Group 2), about 500 companies, mandatory XBRL note submissions will begin with the 2026 business reports (due March 31, 2027). For those with assets under 100 billion KRW (Group 3), about 750 companies, mandatory submissions will start with the 2027 business reports (due March 31, 2028).

An FSS official emphasized, "We will strengthen support for listed companies and accounting firms through cooperation with disclosure and accounting-related organizations to prevent trial and error during the disclosure process for newly subject companies." In addition to providing pilot XBRL submissions and feedback, as well as XBRL authoring guide training, specialized XBRL education will be conducted throughout the year in collaboration with organizations such as the Korean Institute of Certified Public Accountants.

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