FSS and Hangonghoe Support XBRL Financial Statement Preparation... "Efforts to Ease Burden"

The Financial Supervisory Service (FSS) announced on the 24th that it will continue to provide guidance and practical training to support the preparation of XBRL financial statements in collaboration with the Korean Institute of Certified Public Accountants (KICPA) and others.

Non-listed companies subject to submitting business reports applying International Financial Reporting Standards (IFRS) must prepare the main body of their financial statements in XBRL starting from the third quarter of this year. Currently, listed companies in non-financial sectors are preparing the main body of their financial statements in XBRL.

The FSS stated, "Non-listed companies may face difficulties in preparing and disclosing XBRL financial statements for the first time, as they are not familiar with XBRL and have relatively less disclosure infrastructure." It added, "Together with KICPA and others, we will establish a permanent support system to assist non-listed companies in preparing XBRL financial statements and will continue to provide guidance and practical training."

The permanent support system for preparing XBRL financial statements for non-listed companies will provide guidance and training through the financial associations to which non-listed companies in the financial sector belong.

For non-financial sectors, support will be provided by the FSS and KICPA. An offline briefing session will be held over three days from the 8th to the 10th of next month for disclosure and accounting practitioners of non-financial non-listed companies and small to medium-sized accounting firms. Additionally, video lectures will be posted, and a help desk will be operated to provide ongoing support.

XBRL stands for eXtensible Business Reporting Language, an international standard computer language for financial reporting created to facilitate the generation, reporting, and analysis of corporate financial information. From the third quarter of this year, non-listed companies applying IFRS in non-financial sectors, along with existing listed companies, must submit the main body of their business reports in XBRL. Furthermore, listed companies must also prepare financial statement notes in XBRL starting from the third quarter.

In the financial sector, both listed companies and IFRS-applying non-listed companies submitting business reports must prepare and submit the main body of their financial statements in XBRL from the third quarter. The implementation of preparing financial statement notes in XBRL is under review for next year, targeting listed companies in the financial sector.

An FSS official explained, "We will directly inform non-listed companies required to prepare XBRL financial statements from the third quarter and encourage their participation in training to ensure smooth implementation of XBRL financial disclosure." The official added, "Through the help desk, we will identify difficulties faced by non-listed companies during the preparation process and continuously work on measures to alleviate the burden of preparation."