Research Project on the Design for the Optimum Disclosure System Volume 1: The Introduction of IFRS and Design of an Optimal Disclosure System (Japanese)

Chitoshi Koga, Tetsuyuki Kagaya, Ichiro Mukai, Naohiro Urasaki and Hidetsugu Umehara

Discussion Papers (Japanese) from Research Institute of Economy, Trade and Industry (RIETI)

Abstract: In applying International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS), a disclosure system that consists of four complementary subsystems such as financial information, nonfinancial information, internal control, and auditing subsystems should be designed to match both the business structure of Japan and actual behavior of Japanese enterprises. This paper first discusses the influence of the application of IFRS on Japanese enterprises from two aspects: the external aspects, namely, the accounting environment surrounding Japanese enterprises, and internal aspects, namely, the calculation of profits and the disclosure issues inside enterprises. Second, this paper points out the necessity of designing an effective disclosure system based on the complementary relationship between financial information, nonfinancial information, internal control, and auditing subsystems. This disclosure system needs to take into consideration the characteristics of Japanese-style business, which attaches great importance to maintaining long-term and stable relationships. This paper also testifies that the convergence with IFRS in Japan does not necessarily lead to an improvement in value relevance of accounting information. On the other hand, accounting treatments that can improve the transparency of income information are increasingly demanded. Lastly, based on the aforementioned theoretical and empirical research results, this paper outlines the way in which IFRS should be introduced in order to contribute to the sustainable development of Japanese enterprises.

Pages: 109 pages
Date: 2011-03
New Economics Papers: this item is included in nep-acc
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.rieti.go.jp/jp/publications/dp/11j013.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eti:rdpsjp:11013

Access Statistics for this paper

More papers in Discussion Papers (Japanese) from Research Institute of Economy, Trade and Industry (RIETI) Contact information at EDIRC.
Bibliographic data for series maintained by TANIMOTO, Toko ().