The Japanese Financial Services Agency (FSA) has just announced that listed companies in Japan will have the option to file their consolidated financial statements under International Financial Reporting Standards (IFRS) for the fiscal years ending on or after 31 March 2010.
The FSA has also announced that the use of US GAAP will not be permitted in Japan after 2016. The decision to extend the use of IFRS to non listed companies will be announced in 2012.
Listed companies are permitted to refer to the set of IFRS as published as of June 30, 2009. The recently published IFRS 9 is not included in the list of ‘Designated IFRS’. It may be added subsequently by the FSA.
This decision will enable listed companies in Japan to align their financial reporting with international standards being used all around for the world including Europe.
Mazars welcomes this decision and has already moved a team of experts to Japan to provide its clients with IFRS support.
Should you wish to learn more about this issue, please contact us.