Abstract

This study analyzes the comparative value relevance of consolidated and separate financialstatements information, i.e., book values(net assets) and earnings(net income), based on K－IFRS. For this analysis multiple regression model is used. The results of this study are as follows：First, separate financial statements as well asconsolidated financial statements have value relevance(highly significant positive sign) and theexplanatory power (adjusted R2) of the separate financial statements to the stock price is higherthan that of consolidated financial statements. The adjusted R2 of separate financial statements is0.795 and that of consolidated financial statements is 0.666. Furthermore, earnings have moreeffect on the stock price than book values. Second, The incremental information of consolidatedfinancial statements has also value relevance(significant positive sign). The implications based on above results are as follows：The disclosure of consolidated financialstatements as main financial statements is meaningful in terms of value relevance. But thedisclosure of separate financial statements is also meaningful, considering the early stage inadoption of K－IFRS.

Keywords

• K－IFRS
• value relevance
• consolidated financial statements
• separate financial statements

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