Financial Supervisory Service, Pilot Operation of International Financial Reporting Standard Language XBRL

Financial Supervisory Service Expects Smooth Transition and Stable Operation of Financial Disclosure

The Financial Supervisory Service (FSS) is set to pilot a system ahead of the expanded application of the international standard computer language for financial reporting (XBRL·extensible business reporting language). This pilot operation aims to ensure a smooth transition for financial disclosures, which will be strengthened starting in the second half of this year.

On the 13th, the FSS announced that it will accept applications from participating companies to allow submitters to directly prepare and submit XBRL financial statements and thoroughly review them in advance before the full-scale expansion of XBRL financial disclosures.

Financial companies and major unlisted companies must apply XBRL to the main body of financial disclosures starting from the third quarter reports this year, according to the phased advancement plan for XBRL financial disclosures. Listed non-financial companies with total assets exceeding 2 trillion won will see the application of XBRL extended to the notes of this year’s business reports.

Financial companies can apply through their respective financial associations, unlisted companies through the Korean Institute of Certified Public Accountants, and listed companies through their respective associations. Participating companies can prepare and submit XBRL financial statements by referring to already submitted financial statements, and related organizations will review the submitted XBRL financial statements and provide feedback.

The pilot operation is intended to ensure a smooth transition for XBRL financial disclosures. The FSS stated, "By providing various feedback to submitters preparing XBRL financial statements for the first time due to the expanded implementation of XBRL financial disclosures, we aim to enhance the financial disclosure capabilities of submitters," adding, "During the pilot operation, we will collect opinions from submitters and other users to achieve more stable XBRL system operation and improved convenience for submitters."

Additionally, the FSS plans to strengthen its cooperation system with related organizations. An FSS official said, "We also plan to continuously support customized practical training and various best practices to reduce the disclosure burden on submitters."