Korea's Transition from K-GAAP to K-IFRS
Primary Faculty Mentor’s Name
Dr. Leslie Fletcher
Proposal Track
Student
Session Format
Paper Presentation
Abstract
The purpose of this paper is to examine the relationship between South Korean culture and the transition from Korean Generally Accepted Accounting Principles to Korean International Financial Reporting Standards. Data from the Hofstede Centre, renowned for its research on cultural effects on accounting systems, indicates that South Korea is a slightly hierarchical society. It is suspected that the hierarchical structure of Korean society and culture has allowed Korea to make one of the fastest accounting standards transitions in recent years.
This possible correlation between culture and the speed of the transition is examined through the use of a survey of current accounting students in Daegu, South Korea. It is a small-sample survey that captures both qualitative and quantitative data. The survey was written in English; I translated it into Korean; the responses were then translated back to English.
Based on the data collected, I feel certain that there is evidence of a relationship between the strict Korean culture and its ability to change over to K-IFRS. I also found that contrary to some of my early research, the students surveyed feel that K-IFRS has been fully accepted by practitioners. The rest of the data concerning acceptance partially supports my earlier observations that South Korea needs to focus on both educating practicing accountants and enforcing the changes for public companies. The only solution or recommendations I can offer for the situation is time, time to grow used to K-IFRS, to accept it, and to show other countries that it works.
However, the data gathered is by no means definitive as the sample size was unfortunately too small, and the experiences and views of students alone do not cover every vantage point of the transition. Further research is required both to examine other variables such as professors, accountants, auditors, companies, and investors, as well as increasing the number of participants in the study. After increasing the scope of the research, more concrete conclusions will be permitted to form.
Keywords
accounting transition, k-ifrs, k-gaap, accounting, korea
Award Consideration
1
Location
Room 2908
Presentation Year
2015
Start Date
11-7-2015 1:00 PM
End Date
11-7-2015 2:00 PM
Publication Type and Release Option
Presentation (Open Access)
Recommended Citation
Henderson, Rebecca, "Korea's Transition from K-GAAP to K-IFRS" (2015). Georgia Undergraduate Research Conference (2014-2015). 42.
https://digitalcommons.georgiasouthern.edu/gurc/2015/2015/42
Korea's Transition from K-GAAP to K-IFRS
Room 2908
The purpose of this paper is to examine the relationship between South Korean culture and the transition from Korean Generally Accepted Accounting Principles to Korean International Financial Reporting Standards. Data from the Hofstede Centre, renowned for its research on cultural effects on accounting systems, indicates that South Korea is a slightly hierarchical society. It is suspected that the hierarchical structure of Korean society and culture has allowed Korea to make one of the fastest accounting standards transitions in recent years.
This possible correlation between culture and the speed of the transition is examined through the use of a survey of current accounting students in Daegu, South Korea. It is a small-sample survey that captures both qualitative and quantitative data. The survey was written in English; I translated it into Korean; the responses were then translated back to English.
Based on the data collected, I feel certain that there is evidence of a relationship between the strict Korean culture and its ability to change over to K-IFRS. I also found that contrary to some of my early research, the students surveyed feel that K-IFRS has been fully accepted by practitioners. The rest of the data concerning acceptance partially supports my earlier observations that South Korea needs to focus on both educating practicing accountants and enforcing the changes for public companies. The only solution or recommendations I can offer for the situation is time, time to grow used to K-IFRS, to accept it, and to show other countries that it works.
However, the data gathered is by no means definitive as the sample size was unfortunately too small, and the experiences and views of students alone do not cover every vantage point of the transition. Further research is required both to examine other variables such as professors, accountants, auditors, companies, and investors, as well as increasing the number of participants in the study. After increasing the scope of the research, more concrete conclusions will be permitted to form.
