The purpose of this study is to suggest a measures to improve accounting transparency to protect investors in the film and culture industry.
As the scale of capital inflow and outflow of the film and culture industry increases, investors and stakeholders who require accurate accounting information for the film culture industry are increasing.
However, awareness of the importance of accounting information and related reseach for the film and culture industry is very lacking. The Korean Film Council developed the 「Accounting Standards for Film and Culture Industry」 in 2004. Since then, no further revision has been made.
Therefore, this study analyzed the disclosed accounting information of 5 domestic listed companies that comply with the Korea International Financial Reporting Standards (K-IFRS) and investigated each accounting treatment. It was also compared with the accounting treatment standard proposed by the Korean Film Council. The accounting treatment of the film culture industry was reviewed, and a measures to improve accounting transparency to protect investors in the film and culture industry was suggested.
One way to do this is to revise the accounting treatment standard for the film and culture industry and implement correct accounting, such as revenue recognition, uniformity of account items, inventory recognition standards, and cost of sales according to progress.
In addition, it is necessary to offer accounting guidelines for specific industries such as the film and culture industry, where there are many small businesses and lack of professional accounting manpower. As an improvement plan for disclosure, it is requisite to find a way to provide ease and consistent information for external information users. Furthermore, distribution of guides and education should be provided continuously and steadily to those who write financial statements for film and culture industry companies.