Monday, February 08, 2010

Japan - Voluntary Application of International Financial Reporting Standards

On December 11, 2009, the Financial Services Agency (FSA) in Japan published a set of Revised Cabinet Office Ordinances, including “Regulation for Terminology, Forms and Preparation of Consolidated Financial Statements” and “Cabinet Office Ordinance on Disclosure of Corporate Information,” etc. With these revisions, Japanese listed companies which meet certain requirements (“Specified Companies”) will be given the option to prepare their consolidated financial statements, starting from the consolidated fiscal years ending on or after March 31, 2010, by applying IFRS designated by the Commissioner of the FSA through public notice. On January 20, 2010, the FSA made available an English translation of the draft of revised Regulatory Notices, etc. which are intended to update the list of designated IFRS for the voluntary application of IFRS in Japan, in order to facilitate the public consultation process. (Read the FSA Press Release.)