Awareness of the Importance of Transparency of Accounts and Growing Demand for Fiscal Reform
As structural reform continued to be pursued in four areas, i.e. corporations, finance, labor and public sector, following the 1997 Asian financial crisis, there was growing demand for fiscal reform and measures to ensure transparency of accounts equal to the level of advanced countries
The Beginning of Budgetary and Accounting System Reform
A digital budgetary and accounting system planning and promotion group was established, in addition to the Ministry of Finance and Economy, Ministry of Interior, and Board of Audit and Inspection, in May 2004, and a roadmap for the reform of the fiscal budget, accounting, and IT sector was prepared and fiscal reform (incl. establishment of a fiscal system) was pursued with the participation of accounting and IT experts
Implementation of Accrual Basis of Accounting and Bookkeeping by Double Entry
The systems of accrual basis of accounting and bookkeeping by double entry were introduced by amending the National Accounting Act in October 2007 and the National Finance Act and National Accounting Act were amended in December 2008 for improvements to the settlement report standards, with the amendments coming into effect on January 1, 2009
The Establishment of the National Accounting Standards Center (present-day GAFSC operating under KIPF)
The National Accounting Standards Center was established on July 26, 2010 in accordance with Article 11 (4) of the National Accounting Act, with the aim of successfully establishing the systems of accrual basis of accounting and bookkeeping by double entry and preparing the measures for utilizing information from financial statements, but its functions were then re-assigned to the Government Accounting and Finance Statistics Center (GAFSC) under the Korea Institute of Public Finance in January 2014
Submission of the First National Financial Statements to the National Assembly
After the 2-year pilot operation period (2009 and 2010 accounting years) prescribed under the Addenda of the National Finance Act, financial statements of the central government agencies and the national financial statements for the 2011 accounting year and were submitted to the National Assembly.
Improvement of the National Accounting System (Publication of the National Accounting Handbook)
Reorganized the national accounting regulations by consolidating the standard accounting rules and the accounting guidelines, rewriting the explanations in the existing guidelines into a paragraph form, etc.