Accrual accounting aims to even out fluctuations in cash flows, leading to a negative correlation between accruals and cash flows. In Korea, this negative correlation has decreased over time due to factors like non-timing-related accruals and mismatched revenues and expenses. Korean firms tend to increase accruals when cash flows are poor, indicating earnings management. After adopting IFRS, accrual management decreased, contributing to the decline in the negative accrual-cash flow correlation.