Require IFRSs for Japanese listed companies?
16 Feb 2009
The Japan Financial Services Agency (FSA – the securities regulator) has launched a public consultation on Application of International Financial Reporting Standards (IFRS) in Japan.
- The use of IFRS on a voluntary basis could be permitted, for instance, from the fiscal year ending March 31, 2010, for the consolidated financial statements of certain listed companies. However, the decision needs to be made after assessing various factors.
- On the other hand, the decision regarding the mandatory use of IFRS could be made around, say, 2012. However, this timing could be moved either forward or back depending on various factors and the situation of the implementation of the use of IFRS on a voluntary basis.
Contents of the Draft Interim Report:
|
Nevertheless, because of the grave importance of accounting standards as the yardstick for assessing financial statements, with punitive action under law taken in case of violation, there may be cases in which Japan must suspend application of the parts of IFRS developed by the IASB that are found seriously inappropriate and cannot be recognized as accounting standards 'that are generally fair and just' in Japan. |