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Currently, companies in Japan are permitted to use four different accounting frameworks: IFRS, Japanese Generally Accepted Accounting Principles (GAAP), US GAAP and the newly issued Japan’s Modified International Standards (JMIS). Over the past three years there has been an increasing trend to move to IFRS.
The 112 companies include 91 companies (20 per cent of the TSE market capitalisation) that have already adopted or are in the process of adopting IFRS, and 21 companies (five per cent of the TSE market capitalisation) that are planning to adopt IFRS.
In addition, the analysis shows that an additional 194 companies (17 per cent of the TSE market capitalisation) are considering whether to move to IFRS.
By comparison, in December 2012 only 10 Japanese companies were using IFRS.
Hans Hoogervorst, Chairman of the IASB, said:
The situation in Japan is unique and insightful; companies have a choice between several sets of standards. There has been a significant increase, in a short period of time, in the number of companies voluntarily adopting IFRS. This demonstrates that these companies find IFRS helpful for their international business activities.