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K-IFRS Employee Benefit Liability Valuation

Outline

Upon introducing K-IFRS, liability recognition of retirement benefit and long term benefit has been changed.

종업원 급여 부채평가방식 표
Classification Content Liability valuation approach
Short-term employee benefits Benefit settlement after 12 months from employment Unrecognized liability
Considered as short-term expense
Retirement benefits Retirement benefit and other post-employment benefits
(medical insurance etc.)
Recognized liability
Using actuarial Projected Unit Credit method
Other long-term employee benefits Benefits for long-term employment Recognized liability
Using actuarial Projected Unit Credit method
Termination benefits Benefits for employment termination Unrecognized liability
Considered as short-term expense

Scope of Business

Based on our audit experience with large accounting firms and more than 2000 companies’ employee trends and benefit regulation analysis, we effectively provided retirement benefit liability outputs and reporting that satisfies K-IFRS Exhibit No. 1019 requirements.

  • Defined Benefit Pension Valuation

    Compensation increasing rate and retirement rate estimation from client’s experience data

    Appropriate discount rate estimation by applying client’s liability duration

    Defined Benefit Pension valuation under Projected Unit Credit method

    Past service cost, pay-off profit and loss, asset recognition upper-limit effectiveness

  • K-IFRS Exhibit No. 19 requirements information output

    Current service cost, interest cost, plan assets, expected earnings output

    Actuarial profit and loss analysis

    Sensitivity test on major assumptions

    Defined Benefit obligations and plan asset Movement analysis

  • Other long-term employee benefit valuation