IFRS Foundation Trustees and the IASB Meets with the Japanese Stakeholders in the Wake of More Japanese companies Adopting IFRS Standards
Recently the Trustees of the IFRS Foundation and the International Accounting Standards Board (IASB) met with the Japanese stakeholders with an objective to exchange views with regards to how IASB can assist them in relation to their migration to and application of IFRS.
On May 25, 2017, the Accounting Standards Board of Japan, Financial Accounting Standards Foundation, Trustees of the IFRS Foundation and the International Accounting Standards Board issued a joint statement which give all the stakeholders an insight with regards to what is going to happen and all this came after many Japanese companies are making move with regards to adopting the International Financial Reporting Standards.
All the public companies that exist in Japan are provided with the option to choose among Japanese GAAP, IFRS or U.S. GAAP as the reporting framework in accordance to which they want to prepare its financial statements. In the year 2010, the Japanese companies were provided with the option of adopting IFRS and since then 164 listed companies have either adopted or announced plans with regards to adopting IFRS in the near future. The figure of 164 represents almost 30 of the total market capitalization in relation to all the public listed companies that exist in Japan. The main reason cited by many of the Japanese companies behind adopting IFRS was that these standards assist in comparing and analysing financial statements of similar companies that operate in different regions or jurisdictions. The increase in the use of IFRS’s within Japan reflects and represents the confidence the Japanese companies have on IFRS’s and it also shows the usefulness of these standards to the Japanese companies.
The Accounting Standards Board of Japan, Financial Accounting Standards Foundation, Trustees of the IFRS Foundation and the International Accounting Standards Board issued a joint statement in which they reaffirmed their commitment towards achieving the objective of a single set of high quality global accounting standards. The statement was issued on May 25, 2017, at the Asia-Oceania office of the IFRS foundation and in which all the parties involved confirmed their commitment towards promoting further co-operation within the region.