Japanese
ACCOUNTING FORUM 2020

No. 28

JAPAN ACCOUNTING ASSOCIATION

Japan Accounting Association
Liaison Office: c/o International Business Institute, Co., Ltd
Tsukasa Building 3rd. F. , 518 Waseda Tsurumaki-cho, Shinjuku-ku,
Tokyo 162-0041, Japan

Copyright© 2020, Japan Accounting Association

Japanese ACCOUNTING FORUM 2020
JAPAN ACCOUNTING ASSOCIATION

Preface
Japanese ACCOUNTING FORUM of Japan Accounting Association (JAA) is
published annually to publicize academic activities of JAA in English. The first issue
of Japanese ACCOUNTING FORUM was published in 1993. This edition for 2020is the 28th issue of Japanese ACCOUNTING FORUM.
This issue contains the summary of presentations at the 78th Annual Conferenceof JAA which was held at Kobe International Conference Center and Kobe Gakuin
University on September 7-9, 2019. It also includes the reports of regional activities
of JAA during the 2019 academic year.
I sincerely hope that Japanese ACCOUNTING FORUM serves the readers tobetter understand the activities of JAA.
Akihiro Noguchi
Chairman of the International Committee andManaging Editor of Japanese ACCOUNTING FORUM,
Japan Accounting Association

Contact: Professor Akihiro Noguchi
Graduate School of Economics
Nagoya University
Furo-cho, Chikusa-ku,
Nagoya 464-8601, JAPANnoguchi@soec.nagoya-u.ac.jp

1

JAPAN ACCOUNTING
Board of Directors (2020)

President:
Yoshihiro Tokuga,

ASSOCIATION

Kyoto University

Directors:
Hisakatsu Sakurai, Kobe University (Professor Emeritus)
Hidetsugu Umehara, Meiji University
Keiichi Oishi, Kyushu University
Masashi Okumura, Waseda University
Takashi Obinata,
The University of Tokyo
Akitomo Kajiura, Kwansei Gakuin University
Nobuhiko Sato, Kumamoto Gakuen University
Kazumi Suzuki, Kobe University
Yusuke Nakajo, Yokohama City University
Makoto Nakano, Hitotsubashi University
Akihiro Noguchi, Nagoya University
Takatoshi Hayashi, Kwansei Gakuin University
Fumiko Hiki, Hitotsubashi University
Ichiro Mizuno, Kansai University
Hiroshi Yoshimi, Hokkaido University
Masaki Yoneyama, The University of Tokyo

2

Japanese ACCOUNTING FORUM 2020

International Committee and 2019-2021 Editorial Board
Managing Editor:
Akihiro Noguchi,

Nagoya University

Deputy Managing Editor:
Makoto Nakano, Hitotsubashi University
Editors:
Takashi Asano, Tokyo Metropolitan University
Hiroyoshi Ichihara, Otaru University of Commerce
Tomoki Oshika, Waseda University
Akira Omori, Yokohama National University
Ikuko Sasaki, Tohoku Gakuin University
Akinobu Shuto, The University of Tokyo
Tomomi Takada, Kobe University
Yutaro Murakami, Keio University
Associate Editors:
Takuma Kochiyama, Hitotsubashi University
Yusuke Takasu, Yokohama National University
Atsuko Takinishi, National Taiwan University
Keishi Fujiyama, Kobe University

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Past Editors of the Japanese ACCOUNTING FORUM :1993－1997
Seigo Nakajima, Managing Editor, Ferris University
Yukio Fujita, Deputy Managing Editor, Aichi Gakuin University
Youichi Hara, Ritsumeikan University
Kazuo Hiramatsu, Kwansei Gakuin University
Toshiro Hiromoto, Hitotsubashi University
Yoshiaki Jinnai, Tokyo Keizai University
Yoshihide Toba, Senshu University

1998－2000
Nobuo Kamata, Managing Editor, Chubu University
Kazuo Hiramatsu, Deputy Managing Editor, Kwansei Gakuin University
Tokugoro Murayama, Deputy Managing Editor, CPA
Shinji Hatta, Surugadai University
Akihiro Noguchi, Nagoya University
Yasuhito Ozawa, Senshu University
Shigeto Sasaki, Senshu University
Kazumasa Takemori, Chubu University

2001－2003
Nobuo Kamata, Managing Editor, Chubu University
Kazuo Hiramatsu, Deputy Managing Editor, Kwansei Gakuin University
Shinji Hatta, Surugadai University
Norio Igarashi, CPA
Noriyuki Konishi, Senshu University
Akihiro Noguchi, Nagoya University
Michimasa Satoh, Nagoya University
Kazumasa Takemori, Chubu University

2004－2006
Michiharu Sakurai, Managing Editor, Senshu University
Kazuo Hiramatsu, Deputy Managing Editor, Kwansei Gakuin University
Yukio Sakaguchi, Senshu University
Hironao Iwata, Tokyo International University
4

Past Editors of the Japanese ACCOUNTING FORUM :2007－2009
Kazuo Hiramatsu, Managing Editor, Kwansei Gakuin University
Noriyuki Konishi, Deputy Managing Editor, Okayama University
Akihiro Noguchi, Nagoya University
Norio Sawabe, Kyoto University
Takashi Yaekura, Hosei University
Koji Kojima, Kwansei Gakuin University

2010－2012
Yoshihiro Tokuga, Managing Editor, Kyoto University
Nobuhiko Sato, Deputy Managing Editor, Meiji University
Koji Kojima, Kwansei Gakuin University
Noriyuki Konishi, Aoyama Gakuin University
Akihiro Noguchi, Nagoya University
Norio Sawabe, Kyoto University

2013－2015
Yoshihiro Tokuga, Managing Editor, Kyoto University
Nobuhiko Sato, Deputy Managing Editor, Kumamoto Gakuen University
Noriyuki Konishi, Aoyama Gakuin University
Chika Saka, Kwansei Gakuin University
Satoshi Sugahara, Hiroshima Shudo University
Tokuei Sugimoto, Kwansei Gakuin University
Tomomi Shiosaki, Kyushu University
Noriyuki Tsunogaya, Nagoya University
Makoto Nakano, Hitotsubashi University
Akihiro Noguchi, Nagoya University
Yutaro Murakami, Keio University

5

Past Editors of the Japanese ACCOUNTING FORUM :2016－2018
Katsuhiko Kokubu, Managing Editor, Kobe University
Hiroshi Obata, Deputy Managing Editor, Hitotsubashi University
Takashi Ando, Chiba University of Commerce
Noriyuki Konishi, Aoyama Gakuin University
Chika Saka, Kwansei Gakuin University
Satoshi Sugahara, Kwansei Gakuin University
Tokuei Sugimoto, Kwansei Gakuin University
Noriyuki Tsunogaya, Nagoya University
Makoto Nakano, Hitotsubashi University
Akihiro Noguchi, Nagoya University
Tadanori Yosano, Kobe University

6

Japanese
ACCOUNTING FORUM
No. 28, 2020
CONTENTS
PrefaceAkihiro Noguchi(1)

Report2019 Annual Conference

Kazuhiro Yasui (10)Plenary Session: Discussing the future of accounting research
Session 1: The Future of Financial Accounting Research
Deepening and expansion of theoretical research
Yukinori Ikeda (12)Dialogues in Accounting (History) Research
Yasuhiro Shimizu(13)

Financial Accounting Research in Macro and Micro Perspectives
Makoto Nakano(14)

Accounting as Nudge of Institutional Mechanism Design
Tomo Suzuki(15)

Session 2: Continuity and Change of the Auditing Research in Japan
Public Accounting Development in the USA
Kunio Chiyoda(16)

How to Make an Academic Approach to a Financial Statement Audit
Yoshihide Toba
From Positive test approach to Falsifiability test approach in Auditing7

Essential Meaning of introducing Audit Risk Model into Auditing Standards inJapan
Hisashi Yamaura (18)
Audit Research and Value Judgement - Extension and Intention Fumio NAITO(19)

Session 3: The Diversity of Management Accounting Research
The Significance and the Limitations of Survey Research in Management
Accounting
Takashi Shimizu (20)The Prospective Management Accounting Study: According to the Evolution of
Fieldwork
Fumiko Hiki (21)
Exploration of Management Control Research: Contribution to Practice as
Explored through Field Research
Eri Yokota (22)
Deconstruction of Management Accounting-An Approach from Modern Philosophy
Katsuhiko Kokubu(23)

Session 4: Public Sector Accounting Research: Issues and Possibilities for
Governance and Accountability
A Study on Theory and Practices of Governance Accounting
Kiyoshi Yamamoto(24)

The Extension of the Roles of Accounting in the Progress of Public
Management Reform
Mari Kobayashi(25)

The Future Direction of Public Sector Auditing
Hiroshi Yoshimi
The Future of Management Accounting Research in Administrative
Organizations: An Analysis Based on Systematic Review
8(26)Takehiro Metoki(27)

Study of Economic Consequences of Taxation on Accounting and Other
Behaviors of Japanese Firms (Interim report)
Kazumi Suzuki(28)

Special Committees

Roles of Management Accounting Systems to Facilitate the Exploitation and
Exploration of Knowledge (Final Report)
Hiroshi Miya (30)Study Groups:
Research on Basic Concept of Financial Statements Audit (Interim Report)
Takatoshi Hayashi (32)
Research on accounting issues concerning revenue from contracts withcustomers in Japan (Final report)
Takashi Sasaki

International Session

(34)

(36)

Regional Reports
Hokkaido Region

Satoshi Imamura(37)

Tohoku Region

Masateru Narikawa(38)

Kanto Region

Hiroshi Torii(39)

Chubu Region

Shin’ya Okuda(40)

Kansai Region

Hiroyuki Murakami (41)

Kyushu Region

Keiichi Oishi

9

(42)

2019 Annual Conference of JAA
Report2019 Annual Conference
Chairperson of the Organizing Committeeof the 78th Annual Conference of JAA

Kazuhiro Yasui
Kobe Gakuin University
The 78th annual conference of the Japan Accounting Association (JAA) wasconvened in Kobe from September 7 to 9, 2019. A review board meeting on
academic awards and a board meeting were conducted on September 6, ahead of theannual conference.
Undeniably, globalization with environmental transformation has resulted fromadvances in many disciplines and has exerted an unquestionable impact on
accounting practices; this change is especially visible in the domain of information
technology. The methodology of accounting research has altered significantly
because of the progress of computer technology. Therefore, the members of theorganizing committee reflected on and discussed the ways in which scholars should
develop research initiatives in the future and “Discussing the future of accounting
research” was decided as the primary theme of the conference. The organizing
committee set up four venues for the plenary sessions and asked four researchers toassume charge of each venue. On the committee’s request, they decided onsubthemes for each session based on the primary theme and appointed four
presenters each.
Approximately 700 participants attended the conference. Apart from themembers of the JAA, Certified Public Accountants and Certified Public Tax
Accountants also enlisted for the conference, possibly because some of the modules
were certified as professional education programs.
Moreover, some members of the Korean Accounting Association (KAA) and the
Taiwan Accounting Association (TAA) registered for the conference. In theinternational session, two presentations each were delivered by the KAA, TAA, and
JAA members in collaboration with the International Committee of the JAA.
The organizing committee invited Mr. Takatsugu Ohchi, a former member of theInternational Accounting Standards Board (IASB), to serve as a speaker at the
special lecture. The topic of the lecture was “IFRS and Japan - How we should deal
with “International Standards” ”
Additionally, the committee invited the Chair of the Accounting Standards Board
10

of Japan (ASBJ), Mr. Atsushi Kogasaka, and the Vice Chair of the ASBJ, Mr.
Yasunobu Kawanishi, as speakers at the ASBJ session on “International Trends
Surrounding the Accounting for Goodwill.”A brief overview of the programs is as follows:
September 7:
At the International Conference Center in Kobe
13:00–14:30 General assembly of the JAA
14:50–16:20
Reports by special committees (2 presentations)
16:40–17:50 Special lecture
At the Kobe Portpia Hotel
18:30–20:30 Banquet
September 8:
At the Kobe Gakuin University Port Island Campus
9:30–14:05 International session
9:30–11:50 Concurrent sessions (35 presentations across 10 venues)
9:30–11:50 Concurrent sessions for graduate students(11 presentations across 3 venues)
13:00–14:25 Reports by study groups (2 presentations)
14:45–17:05 Plenary sessions (4 venues)
September 9:
At the Kobe Gakuin University Port Island Campus
9:30–11:50 Concurrent sessions (31 presentations across 9 venues)
9:30–11:50 Concurrent sessions for graduate students(10 presentation across 3 venues)
13:00–14:45 Discussions regarding the plenary sessions (4 venues)
15:00–17:50 The ASBJ session
The organizing committee of the 78th annual conference of the JAA comprised
staff members of Kobe Gakuin University as listed below.
Chair: Kazuhiro Yasui
Committee members: Kohei Miyamoto
Yasuhisa YoshidaKazuyuki Shimanaga
Yutaka Kawase11

2019 Annual Conference of JAA
Plenary Session: Discussing the future of accounting
research
Session 1: The Future of Financial Accounting Research
Deepening and expansion of theoretical research
Yukinori Ikeda
Aichi University
The main purpose of this report is to present the current status and issues oftheoretical research in financial accounting, and to present the direction oftheoretical research from the perspectives of deepening and expansion.
In current theoretical research of financial accounting, themes (topical issues)
have expanded and basic concept researches have increased. But it has pointed outthat current theoretical researches have the following issues.
(1) Current theoretical research does not try to solve the problem by oneself.
(2) Although research on basic concepts is thriving, current theoretical research does
not try to build the basic concept system oneself, and current theoretical researchdoes not try to solve the topical issues by applying the basic concept system tovarious themes.
(3) Current theoretical research does not try to seek scientific research methods.
Therefore, the direction of theoretical research is organized from two directions:deepening and expansion. Deepening means advancing further theoretical research.
Expansion refers to spreading the scope of theoretical research through dialogue
with other researches.
In order to deepen theoretical research, we need construct our own theoreticalsystem through basic research and systematic research, and we need explore
scientific methods in theoretical research.
In addition, theoretical research needs to be expanded by seeking contact withoutside of theoretical research. It is necessary to derive the premises of theoreticalresearch based on the actual observational events by various research methods andresults of other academic fields.
Moreover, some consideration was given to how theoretical research contributes
to accounting standard setting.
Finally, I pointed out that the fun of theoretical research was that it was possible
to build (create) its own theoretical system and to leave it to the future generations.
12Dialogues in Accounting (History) Research
Yasuhiro Shimizu
Kobe University
In accounting history research, heated debates on over research methods andapproaches occurred in the 1990s. The controversy has changed the picture ofaccounting history research. Can the controversy over the research in accounting
history give any suggestions to accounting research in general? We examined theseissues using "dialogue" as a key concept.
Accounting history research has a long history. References to the history of
bookkeeping can be found in early treatises, and books on accounting history
appeared in the 19th century. The description on the history of accounting would
have been based on intellectual interest in it, but at the same time, history was also
expected to be useful for contemporary issues and problems. In that sense, historicalaccounts were more or less subordinate to accounting in general.
However, since the latter half of the 20th century, accounting history researchhas diversified in methodologies and approaches, partly due to the emergence of
academic societies and specialized journals. The diversification of research methods
has led to a fierce exchange of opinions about the nature of research, and in
retrospect the 1990s were called "the roaring nineties". However, the controversy
hadn’t had a significant influence outside of accounting history studies. The fact that
accounting history research had a place to publish research results in specialized
journals made the controversy invisible from the outside. Some researchers felt asense of danger over the ongoing debate, and more researcher from different
approaches began to attempt dialogues. These dialogues were intended for wider
audiences and accounting history research has capturing more attention.
Through the debate, the necessity of explaining the nature of the research and its
significance has been more strongly recognized. It was necessary for others tounderstand the significance of the study. This experience in accounting history may
have implications in accounting research in general. The significance of the study is
not explained automatically.

13

Financial Accounting Research in Macro and Micro Perspectives
Makoto Nakano
Hitotsubashi University
Accounting researchers have long focused mainly on firm-level accounting
numbers. In recent years, a new research stream is emerging, that is“Macro-Accounting”. “Macro-Accounting” focuses on aggregate level accounting
information. We empirically investigate information usefulness of aggregate
earnings for GDP growth rate estimation using Japanese data set.
Our main results are threefold. First, though we confirm that aggregate-levelprofitability drivers are significant leading indicators of GDP growth worldwide, we
also find that their incremental usefulness to predict future GDP growth is trivial.
Second, aggregate-level profitability drivers are useful to predict GDP growth only
when facing economic shock. Third, it is usefulness especially in emerging countries.
Our findings make an implication on how to use aggregate earnings to forecast GDP
growth.
There are few study in this area. However, I believe that “Macro-Accounting”
literature is a growing body of work with a promising future.

14

Accounting as Nudge of Institutional Mechanism Design
Tomo Suzuki
Waseda University / Oxford Institutional Mechanism Design
One of common presumptions that accounting entails is its character as theneutral reflection of preexisting realities, which provides accounting with theproperty as the official and the public. This is so, despite the series of efforts thatsocial constructivist accounting researchers in the 1980s and 90s exhibited a numberof cases in which accounting actually constructs realities rather than merely reflects
them. The “Epistemology of Macroeconomic Reality: The Keynesian Revolution
from an Accounting Point of View” (Suzuki, 2003) followed such tradition, which is
popularly quoted by historians of political economy and policy science. The point isthat accounting helps designing new realities, reflecting the desires of policy makers,
before it becomes the data and evidence of them.
Once historically established such understanding of social constructivist
accounting, I shifted the focus of my attention to its contemporary applications. The“Report to the Ministry of Finance, the Government of the People's Republic ofChina Unexplored Impacts of IAS / ISFR in China” (Suzuki, 2005) and the “Oxford
Report: The Impact of IFRS on Wider Stakeholders of Socio-Economy in Japan”(Suzuki, 2012) were of a few such examples, which recommended policy makers tostrategically use specific accounting standards to serve for their policy needs. The“One Additional Line”: Institutional Mechanism Design of Accounting for CSR”
(Suzuki and Gaur, 2015) was an application to the future design in India, where such
additional disclosure started embracing the new business culture in which theappropriate balance between the profits and CSR activities are sought bymanagement, investors and other stakeholders.
As above, throughout my academic career over the last 20 years, I perused theidea of accounting as nudge of institutional mechanism design. In order tomaterialize full potentials of such understanding of accounting, efforts were made to
invent a variety of methods. In a few occasions I even chose to withdraw papers
from the so-called top journals which could hinder the actual effectiveness of theidea in the socio-economic operations. In order to empower the diversity our
research in fast-changing society, the JAA may carefully consider appropriate
methods of publication, which secures the Raison d’etre of the Association insociety.

15

Session 2: Continuity and Change of the Auditing Researchin JapanPublic Accounting Development in the USA
Kunio Chiyoda
Ritsumeikan Univ., Graduate School (Kyoto)
I have been studying Public Accounting Development in the USA. Because,
Japanese Accounting Systems are patterned after that of the USA. I have published 6books.
① American Professional Accountants History from the 1880s to 1933, 34, Chuoh
Keizai Sha, 1984.
② American Professional Accountants History（100 Years）, Bunrikaku, Kyoto,
1987.
③ American Auditing in the USA―Risk Approach and Multi-Development
Approach, Chuoh Keizai Sha, 1994.
④ Balance-Sheet Audit, Chuoh Keizai Sha, 1984.
⑤ American Professional Accountants History（150 Years）. Chuoh Keizai Sha,2014.
⑥ Financial Disclosure Development of the Industry Companies and theDevelopment of Professional Accountants In the USA Before 1934, Chuoh
Keizai Sha, 2018

〔Main Themes〕① List of Period of Introducing Professional Accountants Audit in the US
Industrial
Companies Before 1930s.
② “Commercialism”vs. “Professionalism”③

True Nature of Risk-Approach-Based Audit④

Why the Audit of Railroad Companies are“fashion” to “custom”in the 1890s ?

⑤

Why the Accounting Profession failed in Establishing Accounting Principles?

〔Materials〕① The Commercial & Financial Chronicle, First Vol. July 1, 1865 ～ Vo. 113, 1921.
② The Journal of Accountancy, Editorial, Vol.1, 1905～Vol.60, 1935 , AIA Year Book
③ SEC Accounting Series Releases, Annual Report of NYSE, Moss Report,
Metcalf Report, The Wall Street Journal, The New York Times, The

Washington Post, Business Week, Fortune, Time, Dun’s Review, Forbes,

16

Financial Executives etc.
④ Annual Reports of General Electric Co. From First Year（1893）～ 1993
⑤ Annual Reports of About 60 Industrial Companies Before 1934.
⑥ Big 8’ Accounting Firm History, Moody’s Industrials（1925—4,070 Corps., 1932
―3,008 Corps.）、Direct Inquiry of 50 Companies.
⑦ Histories of States Public Accounting Profession（14 States）, History of Price,
Waterhouse & Co. & Deloitte & Co. , Books by G.O. May, R.H. Montgomery、
Arthur Andersen etc.

17

From Positive test approach to Falsifiability test approach in
Auditing
Essential Meaning of introducing Audit Risk Model into
Auditing Standards in Japan
Hisashi Yamaura
Meiji University
My study had started from a historical research of American independent audit inbusiness, and, therefore, it was natural to reach an audit risk model of America.
Because of this study, I had to be involved in the Council of Corporate Accountingof the Financial Services Agency when Japanese auditing standards had beenchanged according with audit risk approach as internationally accepted standards.
However, I personally think that essential meaning of introducing audit risk
approach into auditing standards has not been understood well among audit
practitioners in Japan. That is, introducing audit risk approach means the change tofalsifiability test approach from traditional positive test approach.
A falsifiability test approach is the proofing methodology which makes sure an
auditor establishes the degree of the corroboration which is needed when forming an
opinion, about the probability of the basic proposition as the audit risk which are"complement of the reliability" in other words a possibility that audit opinion isexpressed by mistake, and whether negative evidence fits within the criteria level ofthe audit risk an auditor would like to maintain (Prof. Yoshihide Toba's book,quotation).
The risk which likely overlooks important false presentations on the financial
statement and expresses wrong audit opinion is audit risk, and falsifiability test
approach sets as a target to suppress audit risk within the rational level and proves
negatively that important false presentations don't exist over the rational level used.
Therefore, a falsifiability test approach is indispensable proofing methodology tomake an auditor performed audit with professional skepticisms, and to bring tension
between the auditor and audited enterprise. On the contrary, I think that auditors
cannot obtain satisfactory results even if they audit financial statements in a positive
test approach that only traces a process of accounting and preparation of financial
statements.
It is regrettable to say this, but accounting frauds don't still become extinct
despite introducing an audit risk approach into auditing standards. These deplorable
events like accounting frauds are observable in every country where has same
auditing standards, and, therefore, an audit risk approach doesn’t seem a specificremedy. Now, the next step is expected.

18

Audit Research and Value Judgement- Extension and Intention Fumio NAITO
Konan University
Regarding the argument topics requested by the chairman, the main points of thisreport are as follows.
The “value judgement” in the theme is used to mean the one on the results of theresearch based on researcher's values. In short, it is the judgment of the researcher
about what social scientific contribution the research results have / may have. In ourreport, the so-called “value judgment controversy” is not intended to be applied toaudit research, nor does we deny the position that value is free in a social science.
We discussed more simple points of how to express the value judgment of theresearcher for planned research results.
･Topics 1: Research method; its reasons and evaluation
Speaking of research methodologies, we have referred to the theory of normative
theory, comparative social system theory, and scientific philosophy. In addition, we
have been conscious of “research based on facts” and “research based on specificvalues”.
Both are aimed at building some kind of theory. The theory requires threeelements: "description", "explanation", and "prediction" (the explanation includes an
explanation of why the phenomenon can be predicted), which should be supported
by objective or rational data. It is required for researchers to investigate causal
relationships.
As the accounting / audit system is one of the social systems, “the explanation”
consciously includes evaluation of the current system from the viewpoint ofrealizing a better social system. In this sense, value judgment should be consideredessential in audit research.
･Topics 2: Themes which should be tackled if we are young researchers
As an academic study on audit theory, we would like to explore "the realities ofaudit quality assurance and auditor's judgment" or "the reliability of an audit" and"research responding to newly occurred audit problems". In addition, we would liketo take up "structuring audit failure cases" and "structuring audit institutional
problems" as practical knowledge structuring research.

19

Session 3: The Diversity of Management Accounting
Research
The Significance and the Limitations of Survey Research inManagement Accounting
Takashi Shimizu
Waseda University
In this presentation, I report the significance and the limitations of descriptive
survey studies in management accounting by using a result of a questionnaire survey
conducted in July, 2019.
Survey studies can be classified into descriptive studies and studies for
explanation. Besides, descriptive studies are grouped into exploratory studies anddescriptive studies in the narrow sense (DSsNS). Although DSsNS meanquestionnaire surveys, they are rarely accepted by refereed journals. Then do DSsNS
have no academic significance?
By the use of the beyond budgeting model, I have been working on how
companies should overcome problems with budgeting systems. However, theprevious researches show that not so many Japanese companies feel strong
dissatisfaction with their budgeting systems. It seems to show that many Japanesecompanies have already improved their budgeting systems. So I conducted aquestionnaire survey to find improvements in their budgeting systems and researchquestions that we should study.
Some interesting results were found. Based on them, new seven researchquestions concerning budgeting systems of Japanese companies in future are set.
DSsNS just reveal what is happening in the management accounting field and do
not show what is the reason and what factor makes an impact on the management
accounting practices. This is the limitations of DSsNS. To make these tasks clear,
we need exploratory studies, studies for explanation, and case/field researches. Thus,
DSsNS is a clue to these studies.
We can find unknown practices through DSsNS and it can also lead us to get
new opportunities to study. This is precisely the significance of DSsNS.
However, if we do not understand what is happening in the real world, wecannot ask. Therefore, researchers in the management accounting field constantly
need to exchange communication with practitioners and to be sensitive to the present
situation.

20

The Prospective Management Accounting Study:
According to the Evolution of Fieldwork
Fumiko Hiki
Hitotsubashi University
In the business world, there are many companies who have major uncertainties
about the ideal form their controller departments should take. Research on this topic
is being conducted continuously in Europe and the United States, and the results
have been published in peer-reviewed journals and books. Based on the convictionthat research related to this topic should also be vigorously conducted in Japan, thegoal of this study is to make a proposal for the future of accounting research bytracing the trajectories of fieldworks.
This study considered the starting point of fieldworks to be Simon et al. (1954),
and reviewed the papers published in peer-reviewed journals in Western countries
between 1980 and 2019 that handled the organization of accounting departments or
the role of controller as their main topic and used fieldwork as a research method.
Due to time constraints, a total of three papers were considered, and these studies
were compared to Simon et al. (1954) from multiple perspectives.
The results revealed that businesses in Europe and the United States have longemphasized an expectation of problem-solving ability and functionality as business
partners in their managerial accounting personnel. On the other hand, the specificdetails of situations in which these personnel are still not able to live up to these
expectations even at present have also been clarified. These problems are both oldand new, and a solution has yet to be found.
In terms of their fieldwork, the papers ranged from static cross-sectional analysis
methods to the chronological analysis of single case studies, and while some used
only qualitative data collection and analysis, others used both quantitative andqualitative data collection and analysis. This shows that significant progress has
been made in terms of the quantification of data and sophistication of analysis
methods. However, in terms of the research organization, these studies were notcomparable to Simon et al. (1954), and they were also inferior in terms of theunderstanding and analysis of the actual condition of human behaviors related tocontrollers and controllerships.
Toward the prospective of accounting research, it is necessary to pay attention to
old and new problems that companies actually have or requests from reality thatbusiness practitioners are not even aware of. It is important to conduct researchbased on these issues. It is desirable to accumulate research through systematicefforts based on the trajectories of European and American fieldworks.

21

Exploration of Management Control Research: Contribution to Practice as Explored through Field Research
Eri Yokota
Keio Unibersity
This study first provides an overview of the changes in the concept ofmanagement control (“MC”) now that more than 50 years have passed since
Anthony (1965) first articulated the concept. The study then asks whether amanagement control system (“MCS”) can be established if strategy, which has been
regarded as a precondition for an MCS, is not emphasized.
The first half of the article clarifies the preconditions for MC advocated by
Anthony (1965) and discusses how these preconditions were viewed by Simons(1995), Merchant and Van der Stede (2012), and Malmi and Brown (2008), who
presented the framework of typical MC thereafter. It discusses the results of theirstudies with respect to the target of MC, the information that affects the target(whether it contains financial, non-financial, formal, or informal), the relationshipamong partial systems (whether it is “process” or “parallel” in nature), and therelationship with strategy. While the preconditions were expanded in many
frameworks, two points remained unchanged: 1) The purpose of MC is thecongruence of all organizations and partial optimizations; 2) strategy is an important
objective for MC.
However, since their corporate environment remains uncertain, some major
companies do not emphasize their strategy. It has been revealed that the company,
Google, do not emphasize the strategy or planning in the conventional sense, butthey still seek to ensure that their goals and the views of top management are sharedwithin the organization. They also strive to make information transparent within theorganization through “objectives and key results” (OKRs) while maintaining an
incentive system that is only loosely related to the results of these efforts. We
provide that their goal is clear, even companies that do not have conventional
strategies have MC as an important management mechanism to influence thebehavior of organizational members and encourage them to accomplish the goal as
their own.

22

Deconstruction of Management Accounting-An Approach from Modern Philosophy
Katsuhiko Kokubu
Kobe University
Management accounting consists of practical technologies. However, whenmanagement accounting was first taught in universities, researchers wanted toanalyse management accounting practices as a type of science. They emphasize real
data or models and the analysis of real behaviour from these has become the primary
purpose of research.
Since management accounting is a technology, there is always a demand for afunctionality to solve practical problems, and this is why the management
accounting research field exists in society. Normative research that is not based ondata tended to be excluded from academic journals to aspire to ‘science’ becausesuch research does not stand up to the scientific validation of verifiability andrepeatability. This has led to a situation in which the ‘conversation’ between
normative and empirical research cannot take place.
However, empirical research based on seemingly scientific data and analyticalresearch using models is also based on limited ‘theories’, which can be applied only
to the problem at hand. Therefore, it is impossible to capture the vast exterior thatexists outside of theory. All reality exists because of this exterior. No ‘scientific’study can capture the essence of the management accounting phenomenon because
actual practices operate in the real world, not in a closed world. However, as an
academic discipline, it is necessary to approach the deepest part of the target practiceand attempt to construct a theory from there. Without this approach, no scientifictheory can be originally constructed.
To carry out such an attempt, a philosophy that explores the deepest reaches ofhuman thought will be effective. In global accounting research, schools applying
philosophy to accounting research have emerged since the 1970s and several
influential journals have been published. However, in Japan, there are still few
accounting studies that rely on philosophy. After describing the characteristics ofmodern philosophy as applied to accounting, this study will use the method of
deconstruction, which is actually a powerful method of modern philosophy,
developed by Jacques Derrida, to get to the root of the management accounting
phenomenon.

23

Session 4: Public Sector Accounting Research: Issues andPossibilities for Governance and Accountability
A Study on Theory and Practices of Governance Accounting
Kiyoshi Yamamoto
Kamakura Women's University
We are facing the global environmental crisis, international conflicts and fiscal
stress. Accounting has also made a certain contribution through the harmonizationof financial reporting, environmental and social responsibility reports, and integrated
reporting. However, it will be ‘No’ when asked if it meets expectations as ameasurement and reporting system.
Accrual accounting became a "magic word" of administrative reform alongsideof governance and network. New public management (NPM) is referred to as‘accountingization’ from the1990s to the 2000s. NPM's movement was "slowdown"
and the network was emphasized as the post-NPM or new public governance(NPG) since the 2000s, while subsequent developments have evolved into financial
reporting standards. Expectations on accounting have been declining due to theshifting to NPG.
This is because the government cannot effectively deal with global
environmental, population, and disparity problems in its working as a supply andresponsibility entity. The primary instrument to solve the problems is changed fromgovernment to governance. Accounting has traditionally played the role byclarifying the subject and entity for reporting and accountability. In other words, it
has ensured usefulness and accountability through true and fair measurement of
economic transactions.
The new idea of ‘accounting for governance’ in the public sector has tochallenge the issues that cannot be addressed by concepts and devices such as
consolidation or related groups in corporate financial reporting. It is not possible toresolve the characteristics of the public sector by adopting or applying corporate
accounting. In case of government activities, it is necessary to measure the results of
the activities collaborating with the stakeholders in relation to their costs andburdens. However, government revenue is not considered an exchange between
government and citizens through taxing and public services by contrast to corporate
sector. Therefore, we have to develop how to measure activities through governanceincluding government in terms of results and costs whether measured in separated or
integral way.

24

The Extension of the Roles of Accounting in the Progress of Public
Management Reform
Mari Kobayashi
Waseda University
In the progress of public management reform, the role of government has beenchanging dynamically from the rowing in the Old Public Administration to thesteering in the New Public Management, and further to serving and brokeringinterests among citizens and community groups in the New Public Service and/or
New Public Governance. These have also brought about the change of the way todeliver the public service and have emphasized the importance of efficient andeffective service delivery.
What impact these movements have had on the roles of accounting? These
encompass the necessity to extend the scope and methods of accounting, and toinnovate its way to transmit and communicate the information for thedecision-making and the performance evaluation, as American Accounting
Association predicted the nature of future accounting in “A Statement of Basic
Accounting Theory” in 1966. From my point of view, five critical challenges might
be emerging. First, as the users of the accounting information cover the present andfuture taxpayers and beneficiaries, service deliverers, and governments, including
both public and private sectors, accounting information should be commonly
understandable and communicable among all the cross sectoral stakeholders. Second,in order to improve control methods and decision making by means of theaccounting information at all levels of socio-economic activities, more comparable
performance and financial information might be required. Third, objectives ofaccounting function might be extended, as measurement and communication of data
revealing past, present, and prospective socio-economic activities including futurerisk analysis. The methods of accounting incorporate these timeframes based on theusefulness of accounting information. Forth, as the foci of measurement would bevaried on multiple tiers, not only program-project based vertical tier but also service
unit-based horizontal tier, these foci with different trajectories should be
systematically structured and coordinated. Fifth, the way to communicate theaccounting information should be innovated as to effective reporting methods,
direction of the information to its best use, for all the stakeholders in the civil society.
Through addressing these challenges, we will have the great opportunity to innovate
the roles of accounting.

25

The Future Direction of Public Sector Auditing
Hiroshi Yoshimi
Hokkaido University
In Japan, the public sector accounting research have covered not only that of thegovernment sector, but also that of non-profit organizations established by theprivate sector. In other words, “non-profit” is the common purpose of Japanese“public sector” organizations. Classification of government or not-government ismeaningless here. In this situation, the meaning of non-profit purposes is important.
In other words, how does accounting contribute to the public interest or publicwelfare?
On the other hand, Japanese accounting regulation diverse by public sector
organization types, and many cases where even non-profit organizations are engaged
in profitable business exist. Corresponding to this situation, we would see significant
diversity in public sector auditing practice in Japan.
In recent years, public sector accounting and audit has introduced the regulationand the idea of private sector (for-profit) accounting and audit. Conversely, it isobserved that private sector accounting and audit have also introduced the idea of
public sector. It means that accounting and audit in both sectors are getting closer
now. Even in the private sector, the organization's purpose is to achieve the public
interest, and audits are also required to prove to public society the achievement ofthat organizational objective.
In this way, audit (or assurance) will have to acquire new methods to prove theassertion by public sector organizations. Further, it will develop from audit byorganizational (corporate body) type like a school corporation audit and a hospital
corporation audit, to audit by activity type like an educational audit and a medical
audit. Exploring the future of public sector audit means to find the way of private
sector audit in future.

26

The Future of Management Accounting Research in Administrative
Organizations: An Analysis Based on Systematic Review
Takehiro Metoki
Musashi University
The purpose of this report is to clarify the direction of management accounting
research in administrative organizations in the future by systematic review, and toclarify a new research area required for management accounting research inaccordance with the expected role of management accounting as an accounting
technology.
Papers published in 19 leading foreign journals since 2010 that publishedmanagement accounting research covering administrative organizations, and inwhich specific keywords like "cost management", "management control","performance management or performance measurement" and "public sector orgovernment" were included in the abstract, were included in the review.
As an example, a review of performance management system which is a major
theme of management accounting research, showed that the main issues discussed
were the factors that promote the effective use of performance information(including research on its impact on the performance of administrative organizations
like managers' abilities, skills, and learning), that promote or inhibit the introductionof performance management systems, and political influences on performance
management systems.
In the context of administrative organizations, however, the design ofperformance management systems involving residents and the use of performance
information by mayors and politicians have been discussed, and the use ofmanagement accounting information has become more diversified. Therefore, there
is a need for a management accounting system as an outcome measurement andcontrol system for various public service providers. The development of amanagement accounting system that can meet such role expectations is required, but
at the same time, it is necessary to question the uniqueness of management
accounting so as not to extend management accounting uncritically.

27

2019 Annual Conference of JAA
Special Committee
Study of Economic Consequences of Taxation on Accounting andOther Behaviors of Japanese Firms(Interim report)
Chair: Kazumi Suzuki
Kobe University
Studies of accounting for tax purposes in Japan has developed as research tointerpret computation rules in the Corporate Tax Code, taking the opportunity of the
adoption of the self-assessment system after World War II. Today, the Japanese
government emphasizes the importance to reform corporate governance of Japanesefirms to improve their profitability. BEPS issues are also taken by OECD and otherinternational organizations. In such circumstances, it is getting important for policy
evaluations to make clear economic consequences of applied tax rules. The studies
are required to unite the outcome of such research with the traditional legal research
focusing on interpretations on tax laws and provide the knowledge to be available
for evidence based policy making. The purpose of the committee is to make clear the
influence of Japanese taxation on corporate behaviors because such research has
been weaker than the studies of interpretation on tax laws.
The study of the committee employs a research framework to pay attention to
structures and functions of a firm, to see a firm as a nexus of contracts among
stakeholders, to treat taxes as a kind of transaction costs, and to specify how tax
burdens are managed in order to improve corporate value. A feature of this study is
to integrate legal research on tax laws with applied micro economics: economics oforganization and information, on the basis of the accumulation of knowledge ofcorporate finance and public economics. A comprehensive perspective is required
for this framework. This perspective consists of considerations to influence of tax
planning on all stakeholders, all taxes and all costs.
Such considerations might induce identification problems in research. For
example, existence of implicit taxes included in all taxes suggests that implicit taxes
might decrease even though observed explicit taxes are not reduced, and vice versa.
Thus, it is not sufficient to examine only corporate behaviors to reduce explicit taxes.
In addition, tax costs minimization in tax planning might simultaneously induce
financial reporting costs and agency costs with incentive problems. Therefore, it isdifficult to specify factors in a contract which is observed as the result of the trading28

off between tax costs and the other costs.
The study is concerned with (1) relations between financial reporting andtaxation, (2) corporate behaviors to reduce tax burdens, (3) roles of taxes inmanagerial decision making on a structure and behavior of a firm, (4) effects oftaxes on asset price, (5) international taxation, in particular income shifting amongtax jurisdictions, (6) reactions of capital markets to tax planning, (7) tax compliance,and (8) functions of taxes in system designs. The committee will review extant
research giving consideration to the identification problems and then add some newresearch.
The committee presents two research in progress.
(1) Yamada, Akihiro. “Profit shifting for tax avoidance by Japanese firms: Methods
and evidences.”(2) Mastuura, Soichi. “Does brand equity constraint tax avoidance?”
Chair: Kazumi Suzuki (Kobe University)
Members: Takashi Asano (Tokyo Metropolitan University)
Emi Iwasaki (Matsuyama University)
Keikichi Kato (Hirosaki University)
Yutaka Kawase (Kobe Gakuin University)
Kenji Kometani (Rikkyo University)
Soichi Mastuura (Ritsumeikan University)
Yutaro Murakami(Keio University)
Akito Narukawa (Yokohama City University)
Hiroshi Ohnuma(Chuo University)
Shinya Okuda (Nagoya City University)
Chika Saka (Kwansei Gakuin University)
Joe Sakurada (Hokkaido University)
Takayuki Takahashi (Yokohama City University)
Takefumi Tamura (Chuo University)
Akihiro Yamada (Chuo University)29Special Committee
Roles of Management Accounting Systems to Facilitate theExploitation and Exploration of Knowledge(Final Report)
Chair: Hiroshi Miya
Kobe University
The innovation literature has revealed that there are two modes of learning andinnovation: the exploitation of the existing knowledge and the exploration of new
knowledge. Management accounting systems are usually considered as tools that
activate exploitation while are detrimental to exploration. But is that true? This
research intends to find the answer.
To achieve this purpose, we focus on two research questions. (1)What is theknowledge relating to management accounting? (2)How does management
accounting contribute to the exploitation / exploration of knowledge? To investigate
these questions, 13 research projects have been started up. Research projects forquestion (1) can be divided into four levels of organization that consist of individuallevel, group level, firm level, and inter-firm level based on their research concerns.
Especially, as the open innovation is nowadays attracting a great deal of attention,
the relation between the inter-firm knowledge and management accounting is one of
the important issues. Besides, our review of the literature finds that there is anecessity to figure out the relation between management accounting and personal
creativity which plays a role as input to innovation. As for question (2), we find outthat the assertion which considers management accounting is detrimental toinnovations is one-sided and short-sighted. An empirical research on this question
with the title “Exploration- and Exploitation-Oriented Innovation Strategies and the
Choice of Management Control Package (MCP) Design” is represented in the final
report.
In this research, the influence of the difference between the exploration-oriented
and the exploitation-oriented innovation strategies on the choice of MCP isinvestigated by using data collected from a survey of listed companies. Specifically,30

we draw on Simons’ levers of control framework to examine what types of MCP areused by the observations. Two important findings from our results are reported. First,
in the firms with strong exploration orientation, the four levers of control e.g. belief
control, boundary control, diagnostic control and interactive control of management
accounting systems are intensively used at the same time. Second, in the firms withstrong exploitation orientation, diagnostic control and interactive control ofmanagement accounting systems are found to be more important. Based on thesefindings, we conclude that management accounting systems are useful to the
exploitation of the existing knowledge as well as the exploration of new knowledge.

Chair:
Hiroshi Miya (Kobe University)
Member:Kohei Arai (Osaka Prefecture University)
Keisuke Oura (Ritsumeikan University)
Takaharu Kawai (Doshisha University)
Yuichi Kubota (Nanzan University)
Junya Sakaguchi (Nagoya University)
Tomohiro Sakuma (Matsuyama University)
Ikuko Sasaki (Tohoku Gakuin University)
Yoshitaka Shirinashihama (Yamagata University)
Takeyoshi Senoo (Chuo university)
Satoshi Taguchi (Doshisha University)
Kazunori Fukushima (Chuo University)
Kenji Yasukata (Kindai University)
Meiling Liu (Kagoshima University)31

2019 Annual Conference of JAA
Study Group
Research on Basic Concept of Financial Statements Audit(Interim Report)
Chair: Takatoshi Hayashi
Kwansei Gakuin University
We have much research literature on financial statements audit. However, there
is an ambiguity in the concept used in the auditing theory, which may hinder thedevelopment of auditing research and education. For example, basic concepts thatseem to share a common understanding, such as auditor independence, audit
evidence, and audit risk, are still controversial.
Regarding auditing standards, which are the interface between the theory andpractice of financial statements audit, the gap between auditing theory and auditing
standards has increased, given the growing influence of the accounting profession
in setting audit standards and the convergence of international auditing standards.
For example, the term “audit objectives” is still used in generally accepted auditing
standards in Japan, but it is included in the term “assertion of management” in theInternational Standards on Auditing. Theoretically, they are a different concept.
Such variation and ambiguity exist in basic concepts used in textbooks, articles,
auditing standards, and practical guidelines, etc. can be confusing learners ofauditing theory and reduce their willingness to learn. We worry that it also causes
the auditing theory to become less attractive. There seems to be a similar problem
in any research area, but we think that the current state of auditing theory is a little
in excess.
Furthermore, the area of auditing research has expanded from the audit ofhistorical financial statements to the assurance of forward-looking information or
non-financial information. Since the theory of assurance engagement is built on thebasic concepts of financial statements audit, such as materiality, audit risk, andaudit evidence, the above-mentioned problems in the theory of financial statements
audit also affect the development of the theory of assurance engagement.
Based on such an understanding of the current status of auditing research, ourresearch objective is to contribute to the development of future auditing researchand education by reexamining the basic concept of financial statements audit andclarifying and systematizing these concepts.
In the interim report session, we reported the progress of our research on thefollowing eight themes. In each study, we addressed clarifying the definition of theconcept and the meaning of the concept in auditing theory, reviewing the historical32

and institutional background of the concept and related literature.
Chapter 1: Definition of Financial Statements Audit
Chapter 2: Function of Audit
Chapter 3: Auditor Independence
Chapter 4: Audit Proposition
Chapter 5: Audit Evidence
Chapter 6: Audit Planning
Chapter 7: Audit Paper
Chapter 8: Audit Risk
In the second year, we will continue to work on the research in the first year,
and we plan to address new research themes, including at least the following
themes: (1) the purpose of the audit, (2) auditing postulate, (3) responsibility ofmanagement and auditor on a financial statements, (4) auditing procedures andtechniques, (5) reasonable assurance, (6) fair presentation and compliance withGAAP.

Chair:
Takatoshi Hayashi (Kwansei Gakuin University)
Members:
Hiroshi Taki (Ritsumeikan University)
Takashi Nagami (Keio University)
Hironori Fukukawa (Hitotsubashi University)
Hidenori Horiko (Osaka Sangyo University)
Nobuyuki Maeyama (Yokohama National University)
Yoshihiro Machida (Aoyama Gakuin University)
Shintaro Mastuo (Tohoku University of Community Service and Science)
Yoshinao Matsumoto (Kansai University)

33

Study Group
Research on accounting issues concerning revenue from contracts
with customers in Japan(Final report)
Chair: Takashi Sasaki
Hitotsubashi University
Accounting Standard Board of Japan Statement No.29 “Accounting Standard
for Revenue Recognition” published in March 2018 will be enforced for Japaneselisted companies from the fiscal year beginning on or after 1 April 2021. This
standard was developed with reference to two accounting standards, that is,International Financial Reporting Standard No.15 “Revenue from Contracts with
Customers” (IFRS 15) issued in May 2014 by the International AccountingStandards Board (IASB) and Topic 606 “Revenue from Contracts with Customers”
issued in May 2014 by the Financial Accounting Standards Board (FASB).
The purpose of our research is to point out problems that may arise inapplying “Statement No.29” and to present solutions. Specifically, we focus on
accounting treatments, financial statement preparation, auditing, and tax practices.
In order to carry out the above analysis, we organized the following five subprojectgroups: “Historical Review” group, “Theoretical Review” group, “Empirical Review”
group, “Audit Review” group, and “Tax Review” group.
The Historical Review group examined the following two points. First, thisgroup reviewed the rules for revenue recognition until the establishment of “TheBusiness Accounting Principles” in Japan and explained the conceptual
relationship between these rules and the traditional “Realization Basis”. Second,
the group traced the history of the basic concept of revenue recognition ininternational accounting standards by examining IFRS 15 and its predecessor
accounting standards (IAS 18; revised IAS 18).
The Theoretical Review group presented the rationale for the “Fair Value
Model” and the “Customer Consideration Model” discussed at the development
stage of IFRS 15. Subsequently, this group examined the relationship between thetransfer of control over goods or services and the recognition of revenues andexpenses, using the case of “buy/sell transactions.”
The Empirical Review group conducted (1) a questionnaire survey for listedcompanies in Japan, (2) value relevance analysis of revenue information, and (3)analysis of managements’ discretionary behavior about revenue recognition. As
for the questionnaire survey, we are still conducting detailed studies.
The Audit Review Group theoretically examined whether the new revenue
34

recognition standard could prevent audit failures or not, based on the discussion
about audit failure on revenue recognition in the United States. In addition, basedon the “PCAOB alert”, this group presented what should be aware of in auditing
after the application of the new revenue recognition accounting standard.
The Tax Review group examined the conceptual relationship between"revenue" in corporate accounting and "taxable revenue" in Corporation Tax Act.
Specifically, referring to Article 22-2 “Amount of Revenue”, this group discussed
the basic thought behind the accounting for variable consideration and gratuitoustransfer.
From the above discussions in each group, it can be pointed out that
“Statement No.29 may have various effects on the accounting practice in theareas of financial accounting, auditing and taxation.
Chair: Takashi Sasaki (Hitotsubashi University)
Members: Yoshiyuki Kaneko (Teikyo University)
Kenji Kometani (Rikkyo University)
Ryosuke Nakamura (University of Tsukuba)
Kazuhiro Nishiyama (Teikyo University)
Satoru Otaka (Yokohama National University)
Michihiro Ozawa (Rikkyo University)
Makoto Tsukahara (Teikyo University)
Yasuhiro Yamada (Rikkyo University)
Tomoya Yoshida (Chuo University)35

2019 Annual Conference of JAA
International Session
Organizational Identity and Performance inContract: A Mathematical Model and Evidence
Toshiaki Wakabayashi, Sophia University
Makoto Kuroki, Yokohama City University

Compensation

Unintended Consequences of a Creative Corporate Culture: An
Empirical Investigation
In Gyun Baek, University of Wisconsin-Madison
Sewon Kwon, Sejong University
Ella Mae Matsumura, University of Wisconsin-Madison
Outside Director’s Equity Incentive and Strategic Alliance Decisions
Vincent Y.S. Chen, National Chengchi University
Yu-Fang Huang, National Chengchi University
Jia-Wen Liang, National Chengchi University
The Subcontract Fairness and Cost of Equity
Sang Hoon Shin, LG CNS audit teamSeon Mi Kim, Chonnam National University
Seung Weon Yoo, Korea University
Attractive from a Distance? Evidence from Acquisition ofMulti-Location Targets
Junjian Gu, University of Tsukuba
The Information Quality of Non-GAAP Disclosures
Han-Chung Chen, National Taipei University
Yen-Jung Lee, National Taiwan University
Sheng-Yi Lo, Feng Chia University36

2019 Annual Conference of JAA
Regional Reports
Hokkaido Region
Satoshi Imamura
Hokkai-Gakuen University
The regional meetings were held in 2019 as follows.
1. The 95th Regional Meeting at Hokkai-Gakuen University on 1 June 2019.
(1) “A Financial Analysis on Discretionary Activities of Managers for Social
Welfare Organizations in Wakayama Prefecture,” Enomoto, Yoshihito,
Hokkaido University.
(2) “The Calculate Structure of Local Public Accounting: Considering the
Double-entry Bookkeeping and the Financial Statements,” Iwahashi,
Chutoku, Sapporo University.
(3) “The First Regulation of the Accountancy Profession in China in 1918,”
Shao, Lanlan, Sapporo Gakuin University.

2. The 96th Regional Meeting at Hokkai-Gakuen University on 7 December 2019.
(1) “Study of the Impact of Leadership Style on Balanced Scorecard
Implementation,” Tada, Masahiro, Doctorate of Otaru University ofCommerce and Otomasa, Sakichi, Otaru University of Commerce.
(2) “Basic Research on Disclosure of Business Model Information,” Mastumoto,
Sayako, Hokkaido Information University.
(3) “The Present Situation of Public Hospital Management and Accounting
Procedures Related to the Amount Transferred：The Case of Tomakomai
City Hospital,” Kawashima, Kazuhiro, Tomakomai Komazawa University.

37

Tohoku Region
Masateru Narikawa
Tohoku Institute of Technology
The regional meetings were held as follows;
1. The 96th Meeting at Fuji University on August 10, 2019.
(1) “Significance and Logic in Mixed Measurement Accounting,” Norihiro
Kohsaka, Fuji University.
Discussant: Tomohisa Hirano, Fukushima University.
(2) “Consideration for Interpretation of Variable Lease Payments inRight-of-Use Model,” Megumi Sato, Chiba Keizai University.
Discussant:Shingo Sekine, Ishinomaki Senshu University.
(3) Special lecture: “Accounting Science & Logic,” Kiyotaka Ueno, Chuo
University.
Moderator: Masateru Narikawa, Tohoku Institute of Technology.

2. The 97th Meeting at Miyagi Gakuin Women’s University on November 30,
2019.
(1) “The Relationship between Management Forecasts and the Earnings
Management Behavior in Japan,” Noriko Tanahashi, Tohoku Gakuin
University, and Kazuo Yoshida, Nagoya City University.
Discussant: Fumihiko Kimura, Tohoku University.
(2) “Stock Listing and Timely Loss Recognition,” Yoshitaka Ohashi, The
University of Aizu.
Discussant: Ikuko Sasaki, Tohoku Gakuin University.
(3) “Current Status and Issues of SME Accounting Education,” Masateru
Narikawa, Tohoku Institute of Technology.
Discussant: Shuko Naito, Hirosaki University.

38

Kanto Region
Hiroshi Torii
Meiji Gakuin University

The 67th Kanto regional meeting was held at Meiji Gakuin University on
December 14, 2019. The main theme of the meeting was “New Trends inAccounting Research.” The Program of the meeting was as follows:
1. Introduction: Masaki Yoneyama (The University of Tokyo)
2. Main Presentation(1) Koki Sawai (Saitama University) “The Relation between Asset Measurement
Technique and Measurement Objectives Viewed from Business Combination
Accounting”
Discussant: Kenichi Akiba (Waseda University)(2) Yumi Morofuji (Rikkyo University) “Application of Psychological Theory toTarget Costing Research: A Reconsideration of Cost Target Tightness”
Discussant: Yoshihiro Ito (Waseda University)(3) Kenichi Yazawa (Aoyama Gakuin University) “New Trends in Accounting,
Auditing, and Governance Research Using Text Mining, and Auditing Research inthe 2030s”
Discussant: Yoshiko Shirata (Tsukuba Gakuin University)
3. Panel Discussion: Masaki Yoneyama (Chairperson), Koki Sawai, Yumi Morofuji,Kenichi Yazawa

39

Chubu Region
Shin’ya Okuda
Nagoya City University
The regional meetings were held as follows;
1. The 143rd Chubu Regional Meeting at Shukutoku University on June 29, 2019.
Conference Presentation(1) “Comparative Study of Post-implementation Review in Accounting Standard
Setting Bodies,” Junta MORI, Aichi Shukutoku University.
(2) “Intangibles Investment and the Value Relevance of Earnings: IFRS vs JGAAP,”
Tomohiro NOGUCHI, Aichi Gakuin University.
(3) “Problem Solving of Japanese Translation of "authoritative support" by
Examining the Hepburn's English-Japanese Dictionary,” Kazumasa
TAKEMORI, Chubu University.
2. The 144th Chubu Regional Meeting at Nagoya City University on December 14,
2019.
Research Paper Presentation(1) “What are the characteristics of a survivor? Evidence from bankruptcy analysisof newly formed Japanese SMEs,” Xu Hong, Nagoya University.
Commentator: Norihide Takechi, Chubu University.
(2) “Intangibles Investment and the Value Relevance of Earnings: IFRS vs JGAAP,”
Hiromi Kawai, Nagoya University.
Commentator: Satoru Nishiumi. Aichi Gakuin University.
(3) “Quarterly Earnings Announcement and Revisions of Management Forecasts inJapan,” Motohiro Tazawa and Tatsuhiko Tashiro, Meijo University.
Guest Speakers Session: CPA Speaker“Effect of the Application of KAM (Key Audit Matters) on Accounting and
Auditing Practices,” Tomomi Hori, JICPA Tokai Association.
Guest Speakers Session: Academic Speaker“Tick data on the Tokyo Stock Exchange,” Kazuo Kato, Osaka Keizai University.

40

Kansai Region
Hiroyuki Murakami
Matsuyama University
The 69th Kansai regional meeting was held at Matsuyama University on
December 21, 2019. The main theme of the meeting was “Issues in AccountingStandard for Revenue Recognition”.
The program was follows.
Plenary Session
Moderator: Kazuhiro Yasui (Kobe Gakuin University)(1) “Satisfaction of Performance Obligations and Realization Concept in Revenue
Recognition”, Junko Saino (Kansai University)(2) “Variable Consideration in Revenue Measurement”, Hiroshi Wada (Kindai
University)(3) “The Timing of Income Inclusion: The Difference between Financial Accounting
and Tax Accounting”, Ryoji Ichitaka (Kwansei Gakuin University)(4) “Principal versus Agent: The Impact of IFRS 15 on Japanese Wholesalers”,
Sinya Matsushita (Kyoto Sangyo University)
Panel Discussion
Chairperson: Kazuhiro Yasui (Kobe Gakuin University)
Panelists: Junko Saino (Kansai University)
Hiroshi Wada (Kindai University)
Ryoji Ichitaka (Kwansei Gakuin University)
Sinya Matsushita (Kyoto Sangyo University)

41

Kyushu Region
Keiichi Oishi
Kyushu University
The 104th regional meeting was held at Kyushu University on July 27, 2019.
(1) “Exploratory Research of the Interaction between Management Control
System and Organizational Inertia in Listed Companies in Japan”, Takahide
Shinkai (Kumamoto Gakuen University).
(2) “A Historical Perspective to Social Control by Accounting Numerals”,
Eiichiro Kudo (Seinan Gakuin University).
(3) “Research on Definition of Bookkeeping and Accounting in the Beginning of
20th Century”, Toshifumi Yamashita (Kumamoto Gakuen University).

42