Samil PwC gave a lecture to small and midsize companies on strategies to respond to International Financial Reporting Standards (IFRS) 18, which becomes mandatory from the 2027 fiscal year.
Samil PwC said on the 8th that it held a seminar titled "Operating profit volatility risk and response strategies for midsize and small companies" at the Amore Hall at its headquarters in Yongsan-gu, Seoul, on the 7th. Attended by about 550 corporate officials, the seminar was prepared to comprehensively explain the key concepts of IFRS 18, practical preparations, and impacts on systems such as enterprise resource planning (ERP), and to support companies' effective responses.
In opening remarks, Hong Jun-gi, head of audit at Samil PwC, said, "IFRS 18 is not simply a change in financial statement presentation standards, but a standard that poses fundamental questions about a company's operating performance," adding, "Because midsize and small companies have limited dedicated personnel and time, it is important to focus on adoption methods suitable for their situations and on the minimum system linkage points that must be checked."
The seminar consisted of three sessions: ▲ case studies on IFRS 18 adoption issues for midsize companies ▲ practical adoption preparation tasks and approaches ▲ considerations for IFRS 18 system impacts.
In the first session, director Im Hyeon-wa of the IFRS 18 advisory platform for midsize and small companies explained the background to adopting IFRS 18 and key changes, and introduced issue cases that may commonly arise at midsize and small companies in connection with adoption.
In the second session, partner Choi Seong-u of the IFRS 18 adoption advisory platform explained execution strategies for adopting IFRS 18 under limited personnel and system environments, along with real-world application cases.
Partner Choi presented the following tasks that midsize and small companies should undertake to prepare for IFRS 18 adoption: ▲ reconstruction of historical financial information ▲ establishment of a framework for producing future financial information ▲ derivation of sustainable performance measures ▲ structured segmentation considering practical application ▲ linkage of derivative effects to nonfinancial areas.
In the third session, AX Node partner Seo Jong-hyeok gave a presentation on "Considerations for system impacts of IFRS 18." Seo said, "IFRS 18 is not merely a change in accounting standards but an issue that affects overall system architecture, including ERP and data," adding, "In particular, it can affect issues such as balance transfers due to CoA segmentation, changes to ERP auto-journal entry settings, custom-built programs (CBO), and interface data."
Hong Seung-hwan, leader (partner) of the IFRS 18 advisory platform for midsize and small companies who planned this seminar, said, "This seminar focused not only on a conceptual understanding of IFRS 18 but also on presenting preparation tasks and system response points that can be immediately checked in the field," adding, "We will continue to provide practical insights and execution support so that corporations can effectively respond to changes in new accounting standards."