By Kim Tae-gyu
Korea will be able to enhance its corporate transparency by embracing the International Financial Reporting Standard (IFRS), a new accounting format, according to a senior official of the country’s financial regulator.
Kim Yong-hwan, Financial Supervisory Service’s first senior deputy governor, made the point in a speech during the Seoul Open Seminar by the IFRS Foundation, Wednesday.
``We are also revamping our accounting supervision in line with the principles-based approach of IFRS and looking to introduce a registration requirement for accounting firms that audit publicly traded companies,’’ he said.
``The goal is to take Korea’s accounting transparency to a new level.’’ Kim made the remarks as Korea is set to fully operate the employ the IFRS starting in 2011.
He added that it should be the top priority of the world to be secure in accounting transparency in the wake of the global financial crisis.
``As we all know, accounting transparency has emerged as one of the most pressing post-crisis challenges with the recognition that financial stability cannot be achieved without it,’’ Kim said.
``There is also the recognition that, in today’s globalized world, ensuring accounting transparency that encourages financial stability has to be a collective effort.’’