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Article 2
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A securities issuer ("issuer") shall establish an accounting system based on the nature of its accounting matters, the actual status and development of its business, and its management needs.
The accounting system referred to in the preceding paragraph shall separately provide the following items, based on the nature of the issuer's business operations, and in a way that meets the needs of preparation of the consolidated financial reports and uniformity in the accounting policies of the issuer and its subsidiaries:
- A general description of the accounting system.
- A chart of journals and ledgers.
- Descriptions and uses of accounting items, accounting documents, account books, and accounting statements.
- General accounting procedures.
- Cost accounting procedures.
- Accounting for sales, purchases, and collections.
- Rules for payments and warehouse management.
- Other items required by the Financial Supervisory Commission (FSC).
The issuer shall see to it that its subsidiaries establish their accounting systems in accordance with the preceding paragraph.
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