The Japanese government has finalised another plank of the so-called 'Abenomics' platform intended to boost growth in Japan. It includes steps to promote further voluntary use of IFRSs in Japan.
Chapter 5-2 of the document devoted to the activation of financial and capital markets and investments includes the following three specific policy statements:
- further promotion of voluntary use of IFRSs in Japan by the Cabinet to increase the number of IFRS adopters, toward the goal of the single set of high quality accounting standards mandated by G20 back in 2008;
- implementation of additional measures by the Cabinet such as issuing a report summarising early adopters' experience of implementing IFRS for use by followers;
- encouragement of listed entities at the Tokyo stock exchange to explain their basic thinking as to the choice of accounting standards (e.g. whether IFRSs are to be adopted) to their investors.
The policy may not produce rapid and drastic changes, but demonstrates clearly that the Japanese government supports the goal of a single set of accounting standards.
The policy statement is available on the Japanese government's website, the comments regarding IFRSs are on page 78 (document available in Japanese only).
