Membership of Financial Accounting Standards Foundation

Membership of Financial Accounting Standards Foundation

Given that, with further convergence between International Financial Reporting Standards (IFRS)and Japanese standards and the allowance of voluntary adoption of IFRS in Japan, it has become increasingly necessary for listed domestic companies to respond in a timely manner to changes in accounting standards and practices, the TSE makes it obligatory for listed domestic companies to (1) become a member of an organization or group engaged in disseminating, spreading and communicating details of accounting standards and changes in accounting standards, (2) participate in training provided by bodies that establish accounting standards, etc. and (3) make other efforts to establish systems that will enable them to gain a proper understanding of the details of accounting standards and practices and respond in a timely manner to changes in accounting standards and practices, stipulating these items as "Items Desired to be Observed" in its Codes of Corporate Conduct. Also, listed domestic companies are required to disclose the status of their membership of the Financial Accounting Standards Foundation (including approach to becoming a member in following business year or thereafter in the case of a listed domestic company that is not a member of said foundation) as of the last day of the relevant business year within three months of the end of said business year.

Thanks to the understanding of many listed domestic companies, around 94% are already members of the Financial Accounting Standards Foundation, but the TSE posts the latest membership data below with a view to early attainment of 100% membership.

Membership of TSE-Listed Domestic Companies

(As of Apr. 03 2017)

  TSE First Section TSE Second Section Mothers JASDAQ Total
No. of listed companies 2,010 533 237 753 3,533
No. of non-members 13 26 15 145 199
No. of members 1,997 507 222 608 3,334
Membership percentage 99% 95% 93% 80% 94%

Please follow the link below for further information on the Financial Accounting Standards Foundation.

Accounting Standards Board of Japan / Financial Accounting Standards Foundation Websiteicon-block