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IFRS (International Financial Reporting Standards)

IFRS

The International Financial Reporting Standards, or IFRS, is a framework for a global accounting standard developed and published by the International Accounting Standards Board (IASB).
The standards developed by the International Accounting Standards Committee (IASC), the predecessor of the IASB, are called International Accounting Standards (IAS). The 41 standards developed by the IASC are still in effect today.
The standards developed by the IASB are called IFRS, up to No. 17.
IAS and IFRS are collectively referred to as IFRSs.

Why IFRS? Why consider adoption?

A global standard

A single global accounting standard was envisioned to allow investors to use the same yardstick to compare companies across the world. Today, accounting standards worldwide are converging toward IFRS.

Expected Benefits of IFRS Reporting

Attract more global risk money

Different accounting standards across jurisdictions make it harder for investors to conduct peer comparison and analysis. By offering a common global standard, IFRS makes it easier for investors to compare and analyze Japanese companies with their global peers and invest in the Japanese market.

Faster investment decisions

Financial reporting based on a common accounting standard allows investors to better compare key information and make decisions more efficiently.

More efficient financial reporting

Multinational companies with subsidiaries worldwide are able to streamline the process of preparing consolidated financial statements and ensure consistent reporting quality by applying a single standard across the entire corporate group.

Voluntary Application of IFRS (current and scheduled)

For lists of voluntary application of IFRS (current and scheduled), please see the page below.

Voluntary Application of IFRS (current and scheduled)

Reference

"Opinion on the Application of International Financial Reporting Standards (IFRS) in Japan (Interim Report)" (July 1, 2009) (FSA Website)icon-block