Global Standards for the world economy

Tuesday 16 July 2019

Banner graphic

Publications


Japan introduces JMIS—jurisdiction profile updated

 08 July 2015


On 30 June 2015, Japan inaugurated a new set of accounting standards to be known as Japan’s Modified International Standards, bringing to four the number of different accounting frameworks that listed companies in Japan may use. The four frameworks are:

  • IFRS—Virtually all listed companies and unlisted companies preparing consolidated financial statements for listing purposes are permitted to use IFRS. (This means IFRS as designated by the Commissioner of the Financial Services Agency. To date, all IFRS have been designated before their effective dates.) At May 2015, 85 companies were using or had publicly announced that they will adopt IFRS. Their market capitalisation is approximately 20 per cent of the Tokyo Stock Exchange. An additional 30 companies are known to be considering moving to IFRS. Two and a half years earlier (December 2012) only 10 Japanese companies were using IFRS;
  • Japanese GAAP as issued by the ASBJ—Historically, most listed companies have used Japanese GAAP;
  • Japan’s Modified International Standards (JMIS)—Accounting Standards Comprising IFRSs and the ASBJ Modifications. JMIS was developed based on IFRS with deletions and modifications determined by the ASBJ. Concurrent with issuance of JMIS on 30 June 2015, the ASBJ published modifications relating to amortisation of goodwill and recycling of other comprehensive income; and
  • US GAAP (with the permission of the Commissioner of the Financial Services Agency).

For more information, visit the jurisdiction profiles here.






Related information