Samsung Electronics VP joins 'global accounting standard-setting'... Korean companies' voices set to grow louder [fn Market Watch]

[Financial News] The accounting chief at Samsung Electronics is drawing attention for taking part in the process of setting global accounting standards. With International Financial Reporting Standards (IFRS) having a direct impact on how companies calculate operating profit and present their financial statements, the appointment is seen as opening an official channel through which domestic companies can convey their practical accounting experience to the international standard-setting process.
According to the Korea Accounting Standards Board on the 6th, the IFRS Foundation appointed Yoo Han-jong, head of the accounting group in Samsung Electronics' finance team and a vice president, to the Global Preparers Forum (GPF). His five-year term begins in October this year, and he may serve one additional term.
The GPF is an official advisory body to the International Accounting Standards Board (IASB). It consists of 22 senior accounting executives from major companies around the world. They convey the views of companies that prepare financial statements firsthand during the development and revision of IFRS.
In particular, the GPF meets with the IASB three times a year to discuss how new accounting standards affect companies' financial statements and accounting practices. In effect, it serves as a channel for communicating implementation challenges and cost burdens that companies may face during the standard-setting process.
The appointment is also drawing attention because it comes ahead of the introduction of IFRS 18. Applicable from 2027, IFRS 18 is a new standard for the presentation and disclosure of financial statements that is set to change, among other things, how operating profit is classified and presented. Domestic companies, too, will need to overhaul their accounting systems and financial reporting frameworks to comply with the new standard.
Vice President Yoo oversees external financial reporting and accounting policies in Samsung Electronics' finance team. He served as CFO of Samsung Electronics' French subsidiary from 2021 to 2023, and has also held positions including head of the internal accounting control group and executive in charge of the accounting group. He graduated with a degree in economics from Yonsei University and earned an MBA from the University of North Carolina at Chapel Hill in the United States.
The Korea Accounting Standards Board plans to work with Vice President Yoo to help ensure that the practical difficulties domestic companies face in applying IFRS, along with their suggestions for improvement, are conveyed during GPF discussions.
However, the GPF is an advisory body and has no authority to set accounting standards directly. How much domestic companies' views are reflected in the standards themselves will depend on future discussions.
[email protected] Kim Hyun-jung Reporter