IFRS Introduction – GPC JAPAN

IFRS Introduction

We provide consulting services for the introduction of the International Financial Reporting Standards (IFRS), the institutionalization of which is considered certain in the near future in Japan.

The IFRS (International Financial Reporting Standards) has already been obligated to apply in preparing the consolidated financial statements of the listed companies in EU from 2005. The examination of making the road map of the total introduction of the IFRS was started in the Business Accounting Council in Japan. Looking ahead to the total introduction of the IFRS, which is surely expected to be realized in the near future, we offer the efficient introduction support services.

Provision of the latest information about the progress of the institutionalization of the IFRS

We provide timely the information on the progress of the deliberation in the Business Accounting Council about the introduction of the IFRS and the details of the revisions of the IFRS.

Provision of the IFRS introduction schedule of the individual company and follow-up business

The Japanese accounting standards are the rules-based accounting standards, stipulating detailed treatment methods.
On the other hand, the IFRS is the principle-based accounting standards, stipulating only a basic matter of the accounting treatment.
Here is the difficulty of the introduction of the IFRS for the Japanese companies.
Therefore, in order to cope with the IFRS, we have to clarify the points of difference between the Japanese accounting standards as applied now and the IFRS, and there is also the need for a work to translate them into the concrete accounting treatment.
To that end, an adequate preparatory period must be secured and perform minute scheduling.
We make the suggestion of a concrete schedule and the follow-up as brains behind our clients.

Work on the reclassification of consolidated financial statements from the Japanese standard to IFRS standard

As to the introduction of the IFRS in Japan, it is at present under deliberation kept the consolidated financial statements in view.
It is thought that we would finally aggregate the individual financial statements made in accordance with the Japanese accounting standards after the convergence, and do the work on the reclassification to the IFRS in the consolidation adjustment journalizing.
In our firm, the certified public accountants of the IFRS project team cope with this reclassification treatment.

Response to the overseas markets

By the presentation in English of consolidated financial statements prepared in accordance with the IFRS, the response to the finance in the overseas markets and overseas IPO become feasible, and we cope with the preparation of financial statements in English.