• Korean Business Review
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• v.17 no.2
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• pp.111-129
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• 2004

The purpose of this study is to indicate problems of accounting for social welfare corporations and to suggest the improvement on them. To accomplish this objective, this study reviewed the existing relevant studies and literatures. The main results of this study are summarized as follows. First, it is necessary to convert from cash basis accounting to accrual basis accounting and to introduce the double entry bookkeeping. Second, it is needed to capitalize the tangible fixed assets and to depreciate them. Third, Cost accounting is necessary to evaluate the operating results. Fourth, it is necessary to establish the generally accepted accounting principles in consideration of the characteristics of accounting for social welfare corporations. Last, it is necessary to introduce the external audit system to ensure the reliability of accounting information.