The government launched a government-civilian joint committee to tackle issues related to accounting industry. As more and more domestic institutions are subject to the International Accounting standards, prompt and solid actions are required to cope with nation-wide and global changes. Last year, G20 Summit participants agreed on the importance of new standards for accounting consolidation. Newly released standards are believed to eliminate differences of accounting standards from each country. Demands for reorganizing external audit functions are increasing as well so that accounting users can be provided with timely information. In tandem with the trend, domestic accounting industry sees open markets, especially developed countries, approaching as Korea-US Free Trade Agreement (FTA) and Korea-EU FTA are going into effect soon.
As a consequence, Financial Services Commission launched a special committee called Committee for improving Accounting Service Industry in an attempt to boosting accounting transparency and strengthening competitiveness of accounting industry and the first conference was held on May 13th.. The Committee involves officials and business people from academic and business field and other related authorities. It plans to not only seek for optimal solutions to make accounting industry be a core part in financial sector but prepare for measures to advance domestic accounting industry followed by the flow of open market situation.
As the Committee put an emphasis on three factors, system, industry, and human resources, three task forces were made up in pursuit of reforming accounting supervisory system, raising competitiveness of accounting firms, and cultivating professionals. Accompanying the respective task force will be advisory council composed of experts in accounting industry and accounting users. The outcomes from each task force will be sorted out and organized by a general committee.
Nongovernmental delegates in particular claimed that financial authority should pay constant attention to overall examination of accounting system and open-door market. Je-Yoon Shin, a Vice Chairman of the Financial Services Commission said while in the past, upgrading accounting system were executed by the government and service providers, current effort to reform infrastructure of accounting industry should be led by nonofficial field, customers in a market-friendly way. In this regard, he encouraged active participations of professionals in private sector.
Je-Yoon Shin, a Vice Chairman of the Financial Services Commission
The following steps after the first meeting are as follows. The Committee including officials and business people will be run by the end of July and in August, plans for advancement on the accounting service industry will be announced. In addition, short-term policies would be released through a consensus of interested parties followed by the start of regulation amendment.
With the current trend of accounting system changes, new guidance has just issued on making accounting industry as an independently high-value added business. Additional improvements are also considered on the accounting infrastructure including sound investing culture, education, training system, and even the Certified Public Accountant (CPA) exam in order to foster practical talents. Positive results are expected to come out from this move.