Differences between Japanese GAAP and IFRSs
20 Aug 2004
A study group appointed by the Japanese Ministry of Economy, Trade and Industry, and comprising predominantly representatives of Japanese industrial companies, has published a report that compares Japanese accounting standards and International Financial Reporting Standards.
The report recommends that the European Commission accept Japanese GAAP as equivalent to IFRSs. European law requires all European companies listed on European exchanges (about 9,000 companies in all) to start using IFRSs in 2005. For non-European companies listed in Europe, IFRSs are deferred to 2007 pending a study of which national GAAPs should be deemed equivalent to IFRSs and therefore permitted in lieu of IFRSs. The report expresses support for the position of the Japanese government and the Accounting Standards Board of Japan that Japanese GAAP is equivalent to IFRSs and urges adoption of "mutual acceptance" by the EC and Japan of each other's standards. The report includes a 29-page tabular comparison of Japanese standards, IFRSs, and US GAAP. Currently, around 250 Japanese companies list their shares or bonds on EU exchanges. Most prepare their financial statements under Japanese accounting rules. Around 10 companies from IFRS countries are listed in Japan.
- Click to Download the Study Group Report titled Report on the Internationalization of Business Accounting in Japan (PDF 1,012k).
- You will find related past news stories dated 26 and 27 January 2004 and 19 June 2004.
- At the request of the EC, the Committee of European Securities Regulators has already begun a Study of the Equivalence of several national GAAPs (including Japanese) to IFRSs (story dated 30 June 2004).