IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

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

Listed author(s):
  • KOGA Chitoshi
  • KAGAYA Tetsuyuki
  • MUKAI Ichiro
  • URASAKI Naohiro
  • UMEHARA Hidetsugu
Registered author(s):

    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.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    Download Restriction: no

    Paper provided by Research Institute of Economy, Trade and Industry (RIETI) in its series Discussion Papers (Japanese) with number 11013.

    in new window

    Length: 109 pages
    Date of creation: Mar 2011
    Handle: RePEc:eti:rdpsjp:11013
    Contact details of provider: Postal:
    11th floor, Annex, Ministry of Economy, Trade and Industry (METI) 1-3-1, Kasumigaseki Chiyoda-ku, Tokyo, 100-8901

    Phone: +81-3-3501-1363
    Fax: +81-3-3501-8577
    Web page:

    More information through EDIRC

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:eti:rdpsjp:11013. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (NUKATANI Sorahiko)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.