Legal Considerations for Improving the Financial Accounting of Social Welfare Foundations and Facilities - Focusing on the Revising the "Financial Accounting Rules for Social Welfare Foundations and Facilities" -

This article proposes the necessity of revising the "Financial Accounting Rules for Social Welfare Foundations and Facilities" to enhance the financial accounting transparency of social welfare foundations and facilities. The current rules have several problems, such as confusion due to differences in single-entry and double-entry bookkeeping by competent authorities, lack of systematic legislation and ambiguity in legal standards, problems due to the principle of single-entry bookkeeping, ambiguity and operational rigidity of budget items, and lack of specific accounting standards. To solve these problems, the following improvement measures are suggested. First, double-entry bookkeeping should be adopted as a principle to unify public interest corporation accounting, and education and budget support for the transition from single-entry to double-entry bookkeeping are necessary. Second, legal standards should be clarified through legal revisions, and detailed manuals should be prepared to minimize differences in interpretation of the rules. Third, double-entry bookkeeping should be introduced in line with the times, and the linkage between budget items and double-entry bookkeeping account subjects should be strengthened. Fourth, the names of budget items should be clarified, and new budget items should be created to reflect expenditures incurred in practice. Lastly, specific guidelines for budget preparation and use should be prepared, and accounting standards should be established to ensure transparency. This article emphasizes that the revision of relevant laws and accounting standards is necessary to improve the financial accounting transparency of social welfare foundations and facilities, and that continuous consultation and communication with the social welfare industry are necessary for this purpose