Vice Minister Gi Jae: "Simplifying Complex Settlement Reports to Make Them Easily Accessible to the Public"

[Asia Economy Sejong=Reporter Son Seon-hee] Choi Sang-dae, Vice Minister of Strategy and Finance, stated on the 9th, "We will simplify the financial statements as much as possible so that the public can easily understand and access the difficult and complex settlement reports."

Vice Minister Choi attended the "20th Anniversary Academic Conference of the Korean Government Accounting Association" held at the National Assembly Members' Office Building in Seoul on the same day and gave a congratulatory speech, saying, "As part of strengthening fiscal management, we intend to reform the national settlement report in a way that enhances the usefulness of financial statements."

He also said, "We will include as much fiscal information as possible in the settlement reports that can be confirmed through financial statements, creating a foundation that allows for analysis of settlements from various perspectives and utilization in fiscal management." Additionally, to refer to international trends, the government plans to reflect financial settlements by utilizing information comparing and analyzing financial statements of major countries.

The government accounting system, which was previously based on cash basis focusing on cash inflows and outflows, has adopted the accrual basis, which records transactions in the period they occur, since 2005.

Vice Minister Choi evaluated, "The introduction of the new (accrual basis) accounting system has provided an opportunity to view fiscal management, which was based on cash basis accounting, from a new perspective," adding, "It contributes to strengthening mid- to long-term fiscal soundness management by calculating future potential liabilities such as pension provisions."