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The Scientific World Journal
Volume 2014 (2014), Article ID 809219, 6 pages
http://dx.doi.org/10.1155/2014/809219
Research Article

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

Sangmyung University, 20 Hongjimun 2-gil, Jongno-gu, Seoul 110-743, Republic of Korea

Received 30 March 2014; Accepted 16 May 2014; Published 9 June 2014

Academic Editor: Hangbae Chang

Copyright © 2014 JeongYeon Kim. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

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.