K-IFRS (Korean International Financial Reporting Standards)

1. Definition

K-IFRS refers to the International Financial Reporting Standards as adopted by the Republic of Korea. It represents the localized version of IFRS, translated and issued by the Korea Accounting Standards Board (KASB). Financial statements prepared under K-IFRS are fully compliant with international IFRS standards.

2. Adoption & Scope

• Timeline: Full mandatory adoption began in 2011.
• Scope: All listed companies (on KOSPI and KOSDAQ) and financial institutions in Korea are required to use K-IFRS. (Unlisted companies may choose to use the separate 'General K-GAAP'.)
• Purpose: To eliminate the "Korea Discount" associated with accounting opacity and to align Korean corporate financial reporting with global standards.

3. Relationship with IFRS

K-IFRS follows a "word-for-word translation" policy of the original IFRS. Therefore, it is substantively identical to IFRS. However, within the options provided by IFRS, Korea may specify certain preferences or disclosure formats that fit the local legal and economic environment.