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 (email@example.com)