해외사업장 외화표시 재무제표의 환산방법에 관한 기업회계기준의 적용실태 분석

This study analyzed the applied status of Korean accounting standards for the translation of foreign operation financial statements in foreign currency. When Korea Financial Accounting Standards was established initially in 1981, the translation of foreign currency financial statements of foreign operations was made basically by Monetary－nonmonetary method. But Current Rate method was allowed when the entity recognizes Current Rate method need to be applied. The analysis of practices in construction industry during 1982∼2007 indicates the amendment of Korean GAAP in 1998 on the translation of foreign currency financial statements of foreign operations did not affect the previous practices under the ambiguous rule in Korea. The current Korean GAAP still does not provide clearly practical guideline and the concept of the independence in operating and financial activities of foreign operations, which was introduced in 1998 amendment. Therefore, the judgement on the independence of foreign operations should be made more prudently. In practice, however, almost all the listed construction companies judged, without reasonable evidence, their foreign operations are operated independently, and applied Current Rate method for the translation of foreign currency financial statements. We need to consider carefully the adequacy of such practices.