During the week of December 7, 2009, Japan’s Financial Services Agency (FSA) announced that it is moving to the formal adoption of International Accounting Standard (IAS) reporting by 2015. Up until now, the FSA has allowed Japanese companies to file consolidated statements using U.S. GAAP, but in 2015 this may end. The agency will make a final determination about whether to make IAS reporting mandatory in 2012.
- Based on this article, what are the major differences between U.S. or Japanese GAAP and IAS?
- Approximately what percentage of current firms on the Tokyo Stock Exchange may be affected by this decision for the future?
- What are the four major reasons cited by Japanese companies that are considering early adoption of IAS?
Whitten, D. (2009). Shifting the Goalposts: Japan to Adopt New Accounting Rules. iStockAnalyst (Retrievable online at http://www.istockanalyst.com).