K-GAAP and K-IFRS
With the transition to IFRS in 2011, listed entities in Korea must prepare statutory financial statements in accordance with K-IFRS, while non-listed entities may elect to do so voluntarily. Entities electing not to prepare financial statements in accordance with K-IFRS shall prepare financial statements in accordance with K-GAAP.
The difference between K-GAAP and K-IFRS
External Audit Obligation in Korea
By the Enforcement Decree of the Act on External Audit of Stock Companies, companys with large size and sales volume are subject to external audit.
A stock company or limited company with two or more of the following conditions shall be subject to external audits in Korea:
Total assets 12 billion won or more
Total liabilities 7 billion won or more
Sales 10 billion won or more
Total number or employees 100 or more