accrual accounting system of korea government - kyoung sook lee, korea
TRANSCRIPT
Government Financial Accounting Division
Ministry of Strategy and Finance
Accrual Accounting System of Korea Government
Kyoung Sook Lee Deputy Director
1
Achievement and Future Challenges
Ⅰ
Ⅱ
Ⅲ
Ⅳ
Ⅴ
Financial Statements preparation process
Standards Setting Process
Regulatory Framework of National Accounting
History of Accrual Accounting Reform
Table of Contents
2
I. History of Accrual Accounting Reforms
1998
• National Finance Act was enacted
2006
• Announce adoption of Accrual Accounting system(The Ministry of Finance and Economy)
2007
• National Accounting Act was promulgate(enforce in 2009) • dBrain(IT system launched)
2009~2010 2011~
• F/S was submitted to the National Assembly
• National Accounting
Standards enacted in
March 2009
• dBrain system reform
• Trial period of F/S preparation
3
I. History of Accrual Accounting Reforms
3-Years Roadmap for new national accounting system
Accounting Standards for Provision
Due Diligence of Infrastructure Asset
Financial Analysis Method
Accounting Operating
System
Infrastructure
Assistance of CPAs for F/S
preparation
Newly Added Accounting Position
Training for Accrual Accounting
Incentive for related Officials
Capacity & Expertise
4
National Accounting Act
Enforcement Decree of National Accounting Act
National Accounting Standards
Technical Releases
Structure and composition of the Consolidated Financial Report
Information to be presented in Revenue and Expenditure Reports, preparation and submission of supplementary documents
F/S preparation (Statement of Financial Position, Statement of Financial Operations, Statement of Changes in net assets)
Definition and measurement of assets and liabilities
Technical Releases on Accounts of the Financial Statements, Lease, BTO, Pensions, etc.
II. Regulatory Framework of National Accounting
National Finance Act Guideline for closing process(preparation, Audit inspection, Submission to National Assembly)
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II. Regulatory Framework of National Accounting
Composition of F/S
KNAS
Presentation of
statement of
financial operations
Measurement of PP&E
Cash Flow Statement is not included, but Revenue and Expenditure report included
Cash Flow Statement included
Recognition of
provisions
IPSAS
Recognition of
BTO usage right
Net Operating Costs-Non exchange Revenues = Fiscal
Operating Results
Revenue – Expenses = Surplus or deficit
Mandatory application of Revaluation model
Cost Model or Revaluation Model
Certain Probable
Deduction from Asset Liability
6
Ⅲ. Standards Setting Process
Government Accounting and Finance Statistics
Center(GAFSC)
Ministry of Strategy
and Finance(MOSF)
Consultation Paper
Exposure Drafts
Legislation of National Accounting Standards, Technical Release
National Accounting System Deliberation Committee(NASDC)
Pre-announce ment of
legislation
7
F/S by accounts and
funds
Agency F/S Consolidated F/S
Eliminating intra-governmental transactions between accounts and funds
•Eliminating intra-governmental transactions between agencies
• Integrating of the national fund account
•Adjusting tax revenues
•Deduction of intra-governmental holdings of national and public bonds
Central Gov. Agencies MOSF
Nat’l Assembly
Audit by BAI
Pursuant to National Accounting Act,
Ministry of Strategy and Finance(MOSF) consolidates agency
financial reports to produce the Consolidated Financial Report.
After having it audited by Board of Audit & Inspection, MOSF
submits the Consolidated Financial Report to the National Assembly.
Ⅳ. Financial Statements preparation process
8
Statement of Financial Position as of FY 2013
Statement of Financial Operations
Current Assets
Investments
Property, Plant and Equipment
Infrastructure Assets
Intangible Assets
Other Non-Current Assets
291.1
563.1
508.6
294.4
1.2
7.9
Current liabilities
Long-Term Debts
Provisions for Pension
Other Provisions
Other Non-Current Liabilities
108.6
347.8
596.3
37.5
27.7
Total Liabilities 1,117.9
Total Assets 1,666.3 Net Assets 548.4
(in trillions of won)
(in trillions of won)
Net Operating Costs
Non-Exchange Revenues
275.3
246.5
Fiscal Operating Results 28.8
V. Achievement and Future Challenges
V. Achievement and Future Challenges
9
On-spot inspection and evaluation on SOC such as
roads, dams, and ports Asset Revaluation of Fixed Asset
Infrastructure Asset
Phase-in adoption of Recognition for Pension Liability (VBO -> ABO -> PBO)
Pension Provision
FY 2011 FY 2012
342.1
436.9
94.8
FY FY 2013
596.3
159.4
Investment
34%
Others18%
Fixed Asset30%
SOC18%
V. Achievement and Future Challenges
10
Improvement of Financial Statement Reporting
Informal
Intuitive
Enhancement of effectiveness of financial
information
Enhance effective usage in cost management
Better link financial information with fiscal
system
Promote cooperation between central and local
governments