▶주메뉴 바로가기

▶본문 바로가기

THE INVESTOR
October 17, 2019
Big Reunion

Finance

FSS sets guidelines for valuation of unlisted stocks

  • PUBLISHED :March 18, 2019 - 13:39
  • UPDATED :March 18, 2019 - 13:39
  • 폰트작게
  • 폰트크게
  • facebook
  • twitter
  • sms
  • print


The financial watchdog said on March 18 it has set guidelines for the valuation of unlisted stocks when they are subject to external audits.

Calculating a “fair value” of unlisted stocks has become a source of controversy as a revised law on external auditing will take effect from November this year. 


The revised law, which aims to deter a repeat of major accounting scandals and to further advance the nation‘s accounting reform efforts, will require limited liability companies, as well as listed firms, to carry out external audits.

Under the guidelines, independent auditors will be allowed to “take into account characteristics” of a company when they calculate values for non-listed shares, the Financial Supervisory Service said in a statement.

In the case of a venture startup, it would be difficult for auditors to properly calculate the value of its unlisted stocks

If so, auditors could recognize a book value of such stocks as their fair value, the FSS said.

By Ram Garikipati and newswires (ram@heraldcorp.com)

  • facebook
  • twitter
  • sms
  • print

EDITOR'S PICKS