Report on the Internationalization of Business Accounting in Japan

Press Release

July 21, 2004
Ministry of Economy,
Trade and Industry

Report on the Internationalization of Business Accounting in Japann

Under the leadership of the International Accounting Standards Board (IASB), efforts are currently under way to promote international convergence in business accounting, which comprises the infrastructure of capital markets. As corporate activities have grown increasingly international, and international commonality is sought in business accounting, the challenge that faces the internationalization of business accounting is the question of how to integrate accounting standards that are deeply rooted in individual countries. Japan is no exception.

In response to this critical issue, since December 2003, the Study Group on the Internationalization of Business Accounting (Chairman：Dr. Hiramatsu, President Kwansei Gakuin University) has been honored by the participation of domestic business leaders, scholars, and market experts, as well as leaders of the European and American business communities in Japan. In addition, we invited Japanese members of the Accounting Standards Board of Japan (ASBJ) and the IASB as observers.

This report summarizes the basic philosophy regarding the internationalization of business accounting in Japan, such as the equivalency of Japan's accounting standards and the IFRS, based on the concept of mutual acceptance and through the verification of accounting standards and a unified position on the international convergence of business accounting.

Contact Persons
Mr. NARUSE, Director for Corporate Accounting
Mr. TOHYAMA and Ms. NAKAGAWA, Duputy Director
Corporate Affairs Division
Economic and Industrial Policy Bureau

+81-3-3501-1511 (Ext. 2541)
+81-3-3501-1675 (Dir.)