In this rapid changing era like today, the role and size of the non-profit corporation with the purpose of social welfare or educational business are getting greater increasingly.
In the status where the proportion of the private college & university is high like in Korea, the study on the accounting system of the private college & university among non-profit corporations by considering the importance of university education will have a more important significance than the study on accounting of other non-profit corporations.
The accounting system of Korean school corporation started with the establishment of the financial accounting rules of the private college & university in July, 1969, and after the new establishment of the exception provisions on the financial accounting rule of the private college & university, which stipulated the accounting handling of the private university and school corporation in February, 1981, there were several times of amendments, which brought much development to the accounting of private institutions, but since the accounting system is not so much perfect as to cope with rapid changes of politics, economy, and social environment at home and abroad, it still has many problems.
In this study, I considered theories on the accounting system of Korean private university to examine the exception provision system and its core contents regarding the financial accounting rules of the private institutions and find out problems in the accounting system to suggest the improvement measure for the problems.
Since the university is an organization developing public good activities, the accounting of the university should be focused on whether the university has a capability for financial activities that can develop education and research activities continuously. Also, the accounting of the university is not for the object of a small number of owners but for the object of a majority of the general public, so it should set a basic direction for the object of the majority of general public, and while highlighting the characteristics of the accounting entity, that is the university, it should provide information appropriately, which is required by the user of accounting information. Meanwhile, the accounting of the university distinguishes accounting systems of private institutions largely into the financial accounting rules of current private institutions and exception provisons on financial accounting rules of private institutions, and then in case of private institutions with the level below that of private university, the financial accounting rules of private institutions are applied to them, and in case of private university(including junior college) and school corporation, the exception provisions on the financial accounting rules of private institutions are applied to them. Like this, the accounting system has no consistency due to the division of accounting handling remarkably into two handling methods, so a confusion occurs in the accounting handling methods of whole private institutions. Therefore, we should enact the accounting handling basis that can be applied to the overall private institutions.
Also, further, we should prepare the accounting handling basis that can be applied to all school institutions(elementary, middle, and high school, and university, school corporation) regardless of whether the school institution is a national one, public one, or private one.