Abstract

The purpose of this paper is to prove the appropriateness of adopting K－IFRS and its disclosureframework, which uses the consolidated financial statements as its primary financial statements, byobserving how the consolidated and separate financial statements of listed entities, prepared underK－IFRS since 2011, have affected the corporate value. Summary of the results of this research are as follows. First of all, the BPS and EPS on the separate financial statement showed meaningful positive(＋)correlation value. This confirms the fact that even when the consolidated financial statements isthe primary statements. the accounting information on the separate financial statements are alsorelated to the corporate value. Secondly, the net income information on consolidated financialstatement appeared more value relevant than that on separate financial statement. Thirdly, the BPSinformation of entities which prepares its year－end financial statements as well as its interimfinancial statements(quarterly and semi annually) under the consolidated basis appeared to be morevalue relevant than that of entities which prepares only the year－end financial statement under theconsolidated basis. Finally, the BPS and EPS of the entities that shows big difference between theaccounting information of consolidated and separate financial statements showed positive(＋)correlation with the corporate value, but the correlation appeared un－meaningful in comparisonwith the entities that shows little differences. The analysis results of this research, which observed how the different attributes of financialstatements reacted on the market at conversion of primary financial statements, would helpdecision makings of accounting information users including the investors.

Keywords

• IFRS
• Consolidated financial statements
• Separate financial statements
• Value relevance

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