Empirical Analysis of Retirement Pension and IFRS Adoption Effects on Accounting Information: Glance at IT Industry

Abstract EN

This study reviews new pension accounting with K-IFRS and provides empirical changes in liability for retirement allowances with adoption of K-IFRS.

It will help to understand the effect of pension accounting on individual firm’s financial report and the importance of public announcement of actuarial assumptions.

Firms that adopted K-IFRS had various changes in retirement liability compared to the previous financial report not based on K-IFRS.

Their actuarial assumptions for pension accounting should be announced, but only few of them were published.

Data analysis shows that the small differences of the actuarial assumption may result in a big change of retirement related liability.

Firms within IT industry also have similar behaviors, which means that additional financial regulations for pension accounting are recommended.