K-IFRS 도입전후 퇴직급여 회계정보의 가치관련성 비교

Korean government announced a road map to adopt International Financial Reporting Standards (K-IFRS hereafter) in 2007, which mandates full implementation of the K-IFRS from 2011 by entire listed companies. Consequently, companies listed in KRX (Korean Exchange) as well as KOSDAQ stock markets are mandated to prepare their financial statements in compliance with K-IFRS from 2011. K-IFRS differ from previous Korean accounting standards (K-GAAP hereafter) in several areas, one of which includes significant changes in the pension accounting provisions. According to K-GAAP, companies are required to estimate pension liability as per liquidation basis whereby the retirement benefit liability is calculated as the total amount to be paid to employees under the assumption that all employees retire at once as of the end of the fiscal year. On the other hand, K-IFRS requires companies to estimate the post-retirement benefit obligation as the present value of future expected post-retirement benefits discounted by appropriate interest rate on the basis of actuarial assumptions. Therefore, companies are required to employ projected unit credit method to estimate pension costs/liabilities and implement fair value approach to estimate pension asset. This study was motivated by the drastic changes in the valuation basis applied to pension liabilities ensuing from the accounting regime transition from K-GAAP to K-IFRS. It would be an interesting research question to compare the usefulness of accounting information prepared as per liquidation basis relative to fair value basis both of which relies on estimation procedures. Specifically, we examine the relative value relevance of pension accounting information in conformity with K-IFRS versus K-GAAP with a view to assess the partial effect of K-IFRS adoption. The pension information in accordance with K-IFRS is expected to exhibit incremental value relevance over the previous K-GAAP in general, as it incorporates more realistic economic substance consistent with going concern assumption. We also examine the value relevance of components of pension liability and pension costs disclosed in the statement of financial position and income statement respectively, which include projected benefit obligation, plan assets, and various pension expense/revenue items. In order to pursue the afore-mentioned research objectives, we collect 1,368 firm-year observations by constructing a balanced panel sample consisting of 171 KRX listed companies which disclosed consolidated financial statements over the period from 2007 to 2014. We employ Ohlson(1995) model for valuation test purposes, wherein balance sheet book value information is decomposed into non-pension and pension components. Likewise, income statement information is also decomposed into non-pension and pension components. Major findings from our tests are consistent with our expectations, which are summarized below: Firstly, the net pension liability in compliance with K-IFRS exhibited increased value relevance compared with previous K-GAAP. Secondly, we observe increased value relevance of pension plan assets as well as pension liability when we decompose the net pension liability into asset and liability components according to K-IFRS over those from K-GAAP. Thirdly, the value relevance of retirement benefit (expense item) decreased under K-IFRS regime. One possible explanation for a reduced value relevance of expense items recognized in the current income statement is that the actuarial gain or loss stemming from actuarial assumption changes and the calculated difference between estimated and actual values is recognized as other comprehensive income rather than current income components. In sum, pension information provided in the statement of financial position demonstrates increased value relevance at the expense of decreased value relevance of income statement counterparts after the adoption of K-IFRS, as the measurement focus shifts from liquidation to fair value basis. This study is, to our knowledge, one of the first research endeavors undertaken to examine the usefulness of pension benefit information provided in conformity with K-IFRS under the Korean context. We confirm that the full-adoption of K-IFRS resulted in enhanced value relevance of pension liability information. Our findings are expected to convey practical implications not only in academia but also to accounting practitioners, particularly in due regard to increasing importance of advanced pension system in a rapidly aging society such as Korea. It is anticipated that in the near future, Korean companies are increasingly more likely to be exposed to increasing financial burden from post-retirement benefit obligations as the life expectance lengthens and the retirement age extends. Accordingly, corporate financial position associated with pension reserve and obligations is more likely to be incorporated into the cost of capital and eventually, firm valuation. In this respect, the results of this study is also expected to provide useful valuation implications, and will also contribute to rational decision making by capital market participants. A caveat is warranted, as events other than the adoption of K-IFRS are not taken into consideration despite their potential impact on the value relevance of accounting information.