Japanese
ACCOUNTING FORUM 2015

No. 23JAPAN

ACCOUNTING ASSOCIATION

Japan Accounting Association
Liaison Office: Hayashi Building, 1-10 Kanda Nishiki-cho, Chiyoda-ku,
Tokyo 101-0054, Japan

Copyright© 2015, Japan Accounting Association

Japanese ACCOUNTING FORUM 2015
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 2015is the 23rd issue of Japanese ACCOUNTING FORUM.
This issue contains the summary of presentations at the 73rd Annual Conferenceof JAA which was hosted by Yokohama National University in Kanagawa Prefecture
on September 4-6, 2014. It also includes the reports of regional activities of JAA
during the 2014 academic year.
I sincerely hope that Japanese ACCOUNTING FORUM serves the readers tobetter understand the activities of JAA.
Yoshihiro Tokuga
Chairman of the International Committee andManaging Editor of Japanese ACCOUNTING FORUM,
Japan Accounting Association

Contact: Professor Yoshihiro Tokuga
Graduate School of Management
Kyoto University
Yoshida Honmachi, Sakyo-ku,
Kyoto 606-8501, JAPAN
tokuga@econ.kyoto-u.ac.jp

1

JAPAN ACCOUNTING ASSOCIATION
Board of Directors (2015)

President:
Kunio Ito,

Hitotsubashi University

Directors:
Koji Ishiuchi, Japan University of Economics
Kiyotaka Ueno, Chuo University
Shigeo Ohtsuka, Chiba University
Hiroshi Obata, Hitotsubashi University
Akitomo Kajiura, Kwansei Gakuin University
Teruyuki Kawasaki, Konan University
Keiko Kitamura, Chuo University
Kouji Kurata, Rikkyo University
Shinya Saito, Yokohama National University
Hisakatsu Sakurai, Kobe University
Kenji Shiba, Kansai University
Yoshihiro Tokuga, Kyoto University
Fumio Naito, Konan University
Kazuo Hiramatsu, Kwansei Gakuin University
Yoshikuni Hirose,
Waseda University
Shuji Mizoguti, Yokohama National University
Assisting Executive to the President:
Nobuhiko Sato, Kumamoto Gakuen University2

Japanese ACCOUNTING FORUM 2015

International Committee and 2013-2015 Editorial Board
Managing Editor:
Yoshihiro Tokuga,

Kyoto University

Deputy Managing Editor:
Nobuhiko Sato, Kumamoto Gakuen University
Editors:
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

3

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

5Japanese
ACCOUNTING FORUM
No. 23, 2015
CONTENTS
Preface

Yoshihiro Tokuga(1)

Report2014 Annual Conference

Shuji Mizoguchi(9)

Plenary Session: The Accounting Research in the Value Diversification Era
Session 1: Equity and Profits in Financial Accounting –Movement of AccountingStandards and New Research Questions–
Direction of Equity and Profit on the IASB's Project
Kenichi Akiba(11)

New Accounting Standards and the Distortion of Shareholders’ Equity
Satoru Otaka(12)

A Direction of an Empirical Research Using Data of Earnings and Book Values
Hiroyuki Ishikawa (13)Session 2: Diversification of Accounting Information and Integrated Reporting
Towards the Development of an Integrated Reporting Framework and Financial
Reporting System
Osamu Furusho (14)Relation between Integrated Reporting and Sustainability Reporting
Atsuo Mukoyama(15)

Research and Disclosure Trend, and KPI Proposal on Integrated Reporting
Chika Saka (16)6

Session 3: The Value Diversification and Management Accounting
Diversification and Generality of Management Accounting
Fumiko Hiki

(17)

Accounting Based on Multiple Valuation Principle for the Public Realm:Social Role of Management Control
Katsuhiko Kokubu(19)

The Viability of Governance Control
Johei Oshita(20)

Session 4: Audit Judgment and Skepticism –Seeking New Research
Opportunities–
Perspectives on Audit Inquiry and Professional Skepticism in Fair Value Audit
Takashi Nagami (21)Personal Network in an Audit Firm and Auditors’ Professional Skepticism
Hironori Fukukawa (23)Professional Skepticism in SEC Enforcement Actions
Takatoshi Hayashi(24)

Session 5: Diversification of Accounting Standards and Tax Accounting
Diversification of accounting standards and its Influence on Corporate Income
Tax
Masashi Sakamoto (26)Issues of Deductible Expenses for Tax Purpose under the Diversified
Accounting Standards
Kazumi Suzuki (27)
Issues of Taxable Units Induced by Diversification of Business Entities
Miho Furuta

7

(28)

Special Committees
Comprehensive Study on the Dynamism of Economic Society and theParadigm Shift of Accounting Systems
Teruyuki Kawasaki(29)

Accounting Policy and Earnings Management by the Management
Masao Tsuji(31)

Subject Research Committee
Transformation of Public Management and the Functions of the Accountancy
Kenji Shiba (33)

Study Groups:
Management Accounting for Enterprise Group Management
Tomoaki Sonoda(35)

A Study on Accounting Theory Construction by Theory Research
Kiyotaka Ueno

(36)

International Session(38)

Regional Reports
Hokkaido Region

Hiroshi Yoshimi(39)

Tohoku Region

Masahiro Shiseki(40)

Kanto Region

Naoki Murata(41)

Chubu Region

Akihiro Noguchi(42)

Kansai Region

Naohiro Urasaki(43)

Kyushu Region

Keiichi Oishi

(44)

8

2014 Annual Conference of JAA
Report2014 Annual Conference
Chairman of 2014
Annual Conference

Shuji Mizoguchi
Yokohama National University
The 73rd conference of Japanese Accounting Association is held twice after aninterval of 28 years at Yokohama National University since the 45th conference ofJapanese Accounting Association was held here in 1986.
Yokohama National University Staff, including from professors to graduate
students, deeply appreciate for the chance to hold this conference and think that there
is not the honor to go too far in this.
The recent accounting research diverges into many academic fields under the
global economic environment and the speed of the research has been accelerated.
The research domain of Financial accounting, Management accounting and
Auditing represented by past accounting approach is mutually closing, the borderamong them becomes much more ambiguous and the innovative research in thecompound domain of accounting approach is reported these days. In addition, a lot ofcollaborative research with proximity research domains such as accounting andeconomics, statistics, business administration, psychology, the information science iscarried out, too. The research mainly on the accounting approach includes a various
research domain and is applied to global business. Besides, the composition
accounting approaches such as case study, positive approach, historical study and soon, are put together appropriately.
According to the concept depicted above, the main theme of the 73rd conferenceof Japanese Accounting Association is determined, “The accounting research in thevalue diversification era”, which is gathered up in “diversity” and “interdisciplinary”
under the economic globalization.

9

The 73rd conference of Japanese Accounting Association preparatory committee.
Chairperson
Shuji Mizoguchi
Committee
Norio Igarashi
Yagi Hiroyuki
Shinya Saito
Hiroyuki Izumi
Hiroyuki Nakamura
Toshio Hara
Masayuki Maeyama
Masaru Takahashi
Akira Omori
Akihisa Kimura

10

2014 Annual Conference of JAA
Plenary Session: The Accounting Research in the Value
Diversification Era
Session 1: Equity and Profits in Financial Accounting–Movement of Accounting Standards and New Research
Questions–
Direction of Equity and Profit on the IASB's Project
Kenichi Akiba
Waseda University
My presentation aims to point out issues and suggest future direction of profit
recognition and the distinction between equity and profit on the International
Accounting Standards Board (IASB)’s project, based upon Discussion Paper (DP)“A Review of the Conceptual Framework for Financial Reporting” issued by IASB
in July 2013 and the responses to the DP from major stakeholders in Japan andmembers of Accounting Standards Advisory Forum (ASAF).
Firstly, not only major stakeholders in Japan but also many constituents aroundthe world including members of ASAF support the IASB’s preliminary views that a
profit or loss should be presented and items of other comprehensive income (OCI)
are principally recycled.
Secondly, the IASB’s preliminary views were that the existing definition of equity
should be retained and that each class of equity claim should be updated. Althoughmany stakeholders both in Japan and other areas advocate the definition of equity,
update of the measurement are not supported. Therefore, it is expected that the IASB
follows such responses towards revising Conceptual Framework.

11New Accounting Standards
and the Distortion of Shareholders’ Equity
Satoru Otaka
Yokohama National University
The purpose of this study is to review the current trends in global accounting
standards in the light of the concept of equity and examine the expected role of othercomprehensive income (OCI) from the perspective of equity valuation. The
objective of financial reporting is to provide useful information to investors,
creditors, and other decision makers, which is agreed upon among the major
accounting standard setters, that is, Financial Accounting Standards Board (FASB)
and International Accounting Standards Board (IASB). Therefore, one of thefundamental problems is the relevance of accounting standards to equity valuation
models (e.g., residual income model).
Both FASB and IASB do not discriminate between equity and net assets in their
existing conceptual frameworks. Furthermore, their accounting standards requirethat transactions without acquisitions or losses of control over another entity betreated as equity transactions. It follows that book value of equity can change as aresult of transactions between the parent and the non-controlling shareholders (e.g.,purchases of the subsidiary’s common shares by the parent). As a consequence, bookvalue of equity is distorted from the point of view of the parent company’s
shareholders, which leads to the distortion of future residual income attributable tothem.
This study builds a frame of reference for relativizing features of global
accounting standards and proposes to use OCI in order to undo the distortion ofshareholders’ equity. This role of OCI is to reconcile the entity perspective and theequity holders’ perspective. A future research agenda is why the entity perspective isprevailing in the major accounting standard setters in spite of the distortion ofequity.

12

A Direction of an Empirical Research Using Data of
Earnings and Book Values
Hiroyuki Ishikawa
Osaka City University
My presentation shows the usefulness of the method of simultaneous estimationof growth and the cost of capital. This method not only provides cost of capitalwhich does not depend on historical data, but also “avoids the need for making
inevitably erroneous assumptions about the expected growth rate beyond theearnings forecast horizon” (Easton 2007).
Using this method, we can analyze the revision of the investor’s expectation. For
example, there is a lot of evidence showing that the market reacts positively to thedividends increase announcement, but how do the expected rate of growth and the
expected rate of return change before and after the announcement?
Using 5,778 firm-years from 1998 to 2013, I find the evidence that both indicators
increase after the announcement relative to the previous period. This finding isrobust even after controlling the stable dividend firms. This evidence shows that thefindings in the U.S. which the increase in dividends means firm’s mature anddecrease in systematic risk do not apply equally to Japanese firms.

13Session 2: Diversification of Accounting Information andIntegrated Reporting
Towards the Development of an Integrated Reporting Frameworkand Financial Reporting System
Osamu Furusho
Nihon University
The debate surrounding integrated reporting is likely to be influenced by thefinancial reporting scope and reporting item public disclosure regulations ofindividual jurisdictions. In other words, the process of shaping integrated reports is
expected to take place gradually, rather than as a radical transition to an extremely
different next-generation reporting model. Recent developments, therefore, haveraised additional issues regarding the boundaries and scope of financial reports
including narrative information, such as accounting narrative and ESG information.
The integration of financial reports, with financial statements as their core, andnon-financial reports, such as environmental reports, CSR reports, and sustainability
reports, does not mean that financial statements will be in a sense dissolved andabsorbed into an integrated report. Financial statements and non-financial reports,having unique roles to play, will maintain their separate existences. In shaping theoverall corporate reporting framework, it is conceivable that we will see theformation of a new integrated reporting superstructure in which management
commentary, corporate governance and remuneration reporting, environmental and
CSR reporting, and financial information reporting silos are integrated to the extent
possible in clearly explicated relationships. In that connection, how to position
financial statements and the scope of management commentary will be criticalissues for the development of integrated reporting systems.
As a point of comparison in examining conditions in Japan, this paper highlights
attention paid to problems concerning the credibility with the process of shaping
integrated reports and the trust of a stock market and a listed company and provides
an overview of formation process and goals in the South Africa．This paper raises
additional issues for institutionalization of integrated reporting based on the “comply
or explain” approach within the larger framework of the overall integrated financial
reporting system．

14

Relation between Integrated Reporting
and Sustainability Reporting
Atsuo Mukoyama
Osaka City University
International Integrated Reporting Council (IIRC) announced The International
Integrated Reporting Framework (IR Framework) in December 2013. According to
IR Framework the primary purpose of Integrated Report is to explain to providers offinancial capital how an organization creates value over time. To accomplish thispurpose Integrated Reporting is required to “integrate” the financial information
about economic performance and the non-financial information aboutsocial-environmental performance of a company. The purpose of this study is to
discuss a background and the point at issue of Integrated Reporting in comparison
with Sustainability Reporting.
IIRC is an organization of the co-founding of A4S (Accounting for Sustainability)
and GRI (Global Reporting Initiative). GRI announced a guideline on Sustainability
Reporting and revised it several times. The GRI guideline functions as de facto
standard on Sustainability Reporting.
IIRC aims financial stability and sustainability through the circle of integrated
thinking and integrated reporting, resulting in efficient and productive capital
allocation. IIRC sounds an alarm bell to short-termism in making investment
decisions and an enlightening role is expected for Integrated Reporting.
It is important to point out that how IIRC’s framework explain the value. Thatvalue has two interrelated aspects - value created for:(a) The organization itself, which enables financial returns to the providers offinancial capital.
(b) Others (i.e., stakeholders and society at large).
The value (a) means economic value (or profit) and the value (b) means social
value (or profit). Integrated Reporting provides us the opportunity to reconsider
relation between economic value and social value.
It is contrastive that GRI includes Completeness in Reporting Principles whereas
IIRC includes Conciseness in Guiding Principles. GRI and IIRC place Materiality
and Comparability in Principles, but the implication is not necessarily common. Twobodies use the same principle, but the published information by a company can betotally different.

15

Research and Disclosure Trend,and KPI Proposal on Integrated Reporting
Chika Saka
Kwansei Gakuin University
Integrated reporting has been a fast-growing research category, which includes:(1) Conceptual research discussing and proposing frameworks and templates ofintegrated reporting, (2) Case study research investigating the internal mechanisms
or institutionalisation in integrated reporting firms, (3) Content analyses ofintegrated reports, (4) Integrated reporting and firm characteristics, (5) The effects oflegal system and culture on integrated reporting, (6) Assurance of integrated report,(7) Integrated reporting and legitimacy, (8) Integrated reporting and stakeholder
management, (9) Integrated reporting in not-for-profit sector or SME, (10)Integrated reporting and education, and so on.
According to CorporateRegister.com, the world’s largest database of corporate
responsibility reports, 268 firms had issued integrated reports as of 2014 July.
Among them, 61 firms had issued their first integrated report in 2011, and with 70
and 85 firms issuing their first integrated reports in 2012 and 2013, respectively.
More firms are expected to begin issuing integrated reports in 2014 and after.
Among the 268 firms, 71% have an integrated report that is more than 100 pages,
with the largest report having 432 pages. Currently, many firms’ integrated reports
seem merely “connected”, and not “integrated”. IIRC’s International IR Framework
is principles-based. Although it acts as a force for financial stability andsustainability and for consideration of key stakeholders’ legitimate needs andinterests, it doesn’t provide specific key performance indicators (KPIs). Even muchof the prior research, there is no evidence on the usefulness of any KPIs forsustainability. Therefore, at this moment, major integrated reporting firms (160 firms,
60%) apply the GRI Sustainability Reporting Guidelines.
This study focuses on firms that have survived for more than 100 years and thathave already achieve sustainability, and finds two distinguishing facts throughempirical analyses of all listed firms in 34 countries; the value added distributed to
stakeholders is significantly larger, and the stability of profitability is significantly
higher in sustainable firms. These two KPIs are equivalent to the two interrelated
aspects of value under the IIRC framework, therefore this study proposes them as
KPIs for integrated reporting to distinguish firm’s sustainability with due
considerations to stakeholders. This study provides the first evidence that value
added information is actually useful for evaluating the firm’s sustainability.

16

Session 3: The Value Diversification and Management
Accounting
Diversification and Generality of Management Accounting
Fumiko Hiki
Hitotsubashi University
Management accounting systems were originally developed for businessorganizations. They are increasingly implemented to nonprofit organizations such as
medical institutions, nursing care facilities and other service organizations. It meansthat the type of organizations which adopt management accounting is diversified.
In this paper, the author focused on amoeba management system as an example ofmanagement accounting system successfully implemented into new sectors toinvestigate diversification of management accounting. In the concrete, two cases ofamoeba management introduction (medical institutions and JAL restoration) arecompared and examined. Points of difference from traditional management
accounting are found in “cooperation consideration system” and profit conceptemphasized in organizations. Cooperation consideration system is used to facilitate
coordination between departments. This system is alike but different from transfer
pricing system and commission system developed for business organizations in
manufacturing industry.
Historical context should be paid attention to consider generality of management
accounting. According to representative and notable executives such as Eiichi
Shibusawa, Konosuke Matsushita and Kazuo Inamori, profit should be sought in an
ethical and moralistic way. They strongly believed that profit should be earned as aresult of social contributions and put their belief into practice. Shortsighted policy
and immediate profit seeking were strictly restrained. Ethical conduct must be
observed even in business organizations. Ethical conduct and profit seeking (“Rongo”
and “Soroban” in old Japanese expression) should be compatible with each other inany type of organizations. Every organization needs both high ethical standards andpursuit of profit. These generality makes management accounting indispensable tononprofit organizations like hospital or care home. Management accounting can berecognized as an important management tool in these nonprofit organizations.
In Japanese successful manufacturing companies, management accounting
systems were designed and used to realize corporate philosophy and management
principles. Considering the role of management accounting itself and management
accountant in these companies, generality of management accounting are found.
These findings are clearly demonstrated the fact that management accounting
generally took an active role of setting up strict discipline and keeping them17

observed. Medical institutions should be learn much from experience of theseleading manufacturing companies.

18

Accounting Based on Multiple Valuation Principle
for the Public Realm:Social Role of Management Control
Katsuhiko Kokubu
Kobe University
It is not a simple task to approach the diversification of values and management
accounting. The Diversification of values is an important phenomenon in modern
society and management accounting is an infrastructural system that supports
modern economies. But the relationship between them is not clear. This presentation
relates the diversification of values to management accounting in terms of
publicness. The author argues the multiple evaluation principle can introduce theconcept of publicness into a firm through management accounting, but it is very
difficult to do so in practice because the economic value is very strongly dominating
corporate behavior. In this paper, the pragmatic problems of adopting the multiple
evaluation principle in management accounting is examined by case studies
introducing material flow cost accounting (MFCA) into firms, which evaluates andpromotes both the environmental and economic value.
The conclusions in this paper are summarized with the following points:
1. The problems encountered in the diversification of values are synonymous withthose of publicness, and the debate in the context of management accounting
should be understood as a matter related to publicness in the private sector. In
view of this, it is necessary to build a new type of management accounting
based on the multiple evaluation principle.
2. As an example of MFCA, when evaluating environmental and economic
multiple values, it is possible for innovation to occur if the environmental value
is independent from the economic value. However, if these values areunderstood as a single continuous concept, the economic value will tend topreside over that of the environment.
3. The introduction of the multiple valuation principle to management accounting
is crucial in order to encourage innovation and promote publicness. However,for this to happen, some institutional measures are necessary to prevent
multiple values from merging with and being absorbed into economic values.

19

The Viability of Governance Control
Johei Oshita
Kyushu University
This paper aims to present the necessity and viability of governance control, amethod that the author finds more appropriate than controlling management in thecurrent circumstances. This opinion is based on the following understanding of thepresent situation in the fields of control theory and management accounting theory.
For better content in the future, it is necessary to analyze a significant number ofpractical cases within control theory, as well as to elaborate the theory itself. It isalso necessary to incorporate the latest trends and the essentials of new theories inneighboring disciplines including Financial accounting/Financial reporting, Internal
control/Internal audit, and Company law/Corporate governance. By conducting theabove-mentioned practices, control theory is approaching a stage in which we needto reconsider the concept in its entirety as well as the matters relevant to the insideand outside of control theory.
As is described in this paper, the author has a personal feeling that control theory
must accept competitive edge, value creation, and sustainability as contradictory
factors and respond to them flexibly. These factors contain a variety of temporal
paradoxes (long- and short-term), financial and nonfinancial paradoxes, andparadoxes between internal aspects and external ones of enterprises. At the sametime, we should closely observe the growing tendency of companies andorganizations to autonomously introduce a series of rules and recommendations on
internal control, which are provided by many international public agencies andprivate organizations, into control theory as voluntary regulations lately. Examples
include the set of rules that the Committee of Sponsoring Organizations of theTreadway Commission (COSO) proposed in the wake of corporate governance. The
International Integrated Reporting Council (IIRC), which has recently attracted
attention, proposed a new form of external reporting that merges information on
environment, society, and governance (ESG information) with financial information.
Analysts of control theory should not neglect these trends.
How do those in favor of control theory respond to the wide variety of requests or
restrictions in companies? As soon becomes evident, this paper seeks the optimal
approach to the question of governance levels. Different from the conventional
control in management, it emphasizes the development of systems of control thatconsider not only the inside, but also the outside, that is, more outward looking
management control that prioritizes social/external aspects. In short, this paper tries
to construct a new control theory by clarifying the necessity and viability of
governance control.
20

Session 4: Audit Judgment and Skepticism –Seeking New
Research Opportunities–
Perspectives on Audit Inquiry and Professional Skepticism
in Fair Value Audit
Takashi Nagami
Keio University
Audit inquiry as an audit technique in fair value audit plays an important role toascertain management assertions. Especially the importance of audit inquiry
becomes higher as uncertainty of the fair value measurement becomes high, because
specific indexes or stock market information could not be referred as an audit
evidence and available evidential matters for such fair value would be limited tosources from economic business states or management’s explanations. However
sufficient discussion about the effectiveness of audit inquiry has not been done anddetail guidance to perform the audit inquiry have not indicated in auditing standards.
Five phases are presented to perform effective inquiry in fair value audit and thefactor of professional skepticism (PS) is explained in each phases in thispresentation.
First phase is the “mind-setting” for interviewers to reduce confirmation bias, and“questioning mind” would be applied as a factor of PS in this phase. It is expected toheighten interviewer’s questioning mind by making a conversion from positive
assertion to negative assertion on fair value measurements. Second phase is the“forming models” before conducting inquiry, and “search for knowledge” would beapplied as a PS factor in this phase. Interviewers should form well-defined models to
obtain enough information from interviewee. Third phase is the “performing inquiry
with various techniques” in conducting inquiry, and “search for knowledge” would
also be applied as a PS factor in this phase. Fourth phase is the “reading verbal andnon-verbal communication” in the process of inquiry, and “interpersonalunderstanding” would be applied as a PS factor in this phase. To pay attention to thepossibility of fictitious or deceitful explanations by interviewee auditors should train
and learn some psychological lie detection techniques. Final phase is the “discreet
judgment” after the performance of inquiry, and “suspension of judgment” would beapplied as a PS factor in this phase. Auditors should judge any existences ofdifference between management’s explanation and auditor’s mental model and any
existences of cues for fictitious or deceitful explanation, and should re-evaluate therisk of material misstatement.

21

It would be essential to establish measurable indicators to heighten PS for eachphases of audit inquiry applicable to the audit practice or to the experimental
research in fair value audit.

22

Personal Network in an Audit Firmand Auditors’ Professional Skepticism
Hironori Fukukawa
Hitotsubashi University
Auditors’ professional skepticism (PS) can be considered at personal level,
engagement level, or organizational level. In most experimental studies, PS has been
examined at personal level. For example, seminal studies by Hurtt (2010) andQuadackers (2009) examine PS as an auditor’s personal trait. On the other hand,archival studies generally investigate PS at engagement level. However, few studies
examine PS at organizational level. This study investigates PS at both personal andorganizational levels by analyzing a personal network within an audit firm.
The importance of examining PS at organizational level has been emphasized insome recent studies (e.g., Toba 2014; Carpenter and Reimers 2013). Given that most
CPAs have not encountered any fraud in the last 10 years (JICPA 2014) and that
audit firms traditionally have adopted an apprenticeship model for human resource
development (Wedemeyer 2010), a crucial issue for an audit firm is how to maintainan adequate level of PS at organizational level.
To identify a personal network developed in an audit firm, this study uses theinformation on engagement partners’ names in audit reports. It is assumed that audit
partners who engage in a particular audit exchange various information and shareknowledge. Suppose that two partners (A and B) signed an audit report of Company
X, three partners (A, B and C) signed an audit report of Company Y, and two
partners (A and D) signed an auditor report of Company Z. In this situation, Partner
A has a tie with Partner B, Partner C, and Partner D. And the tie between Partner A
and Partner B is considered stronger than the tie between Partner A and Partner B or
C. The level of PS exerted by each partner is measured by the weighted mean of
discretionary accruals of companies whose financial statements were audited by thepartner.
As a result of preliminary analysis, it is found that the level of PS exerted by apartner is positively affected by the level of PS of other partners who have a tie withthe partner. The finding has some practical implications. For example, it provides
useful information regarding how to implement partner rotation. This study proposesthat examining PS from a network perspective is a promising approach for future
research.

23

Professional Skepticism in SEC Enforcement Actions
Takatoshi Hayashi
Kwansei Gakuin University
This paper examines Accounting and Auditing Enforcement Releases (AAER)
involving lack of professional skepticism (PS) over the period from 1999 to 2014.
Both researchers and regulators have emphasized the importance of PS when
conducting financial statements audit. Because PS means mental attitude anoperational definition of PS is necessary. However various definitions of PS exist in
the auditing literature. Our research objective is, based on the analysis of AAER, to
describe Securities and Exchange Commission (SEC)’s understanding of PS and tofind out how SEC associate lack of PS with audit failure.
We identified 111 AAER including the word “skepticism” during above
mentioned time period and selected 95 AAER relevant to lack of PS. We carried out
two analyses. One is an analysis of 95 AAER from pragmatics point of view todescribe SEC’s understanding of PS and the other is an analysis of AAER 3436, oneof the 95 AAERs, to clarify association between lack of PS with audit failure.
Our results from analysis of 95 AAERs show the following: We find the phrase“PS” is mainly used to point out auditor failed to maintain or exercise PS (44.9%),or to explain the requirements of PS in auditing standards applicable to the case(35.0%). The context in which SEC concluded auditor failed to maintain or exercise
PS are planning and performing audit procedures (27.4%), the overall audit work
(23.1%), and audit of specific item or transaction (22.6%). Besides, exercise(60.6%) and maintain (27.4%) are the verb used well to describe PS and appropriate(31.4%), heightened (22.9%) and increased (12.9%) are the adjective used to modify
PS.
An analysis of AAER 3436 shows that lack of PS is not associated with specificaudit objectives, audit procedures or audit evidence, but associated with overall
audit failures consist of various violations of auditing standards. SEC found auditor's
improper professional conduct on the ground that auditor failed to maintain PS,
failed to exercise professional due care and failed to obtain sufficient competent
audit evidence.
References:
Nelson, Mark W., 2009, “A Model and Literature Review of Professional
Skepticism in Auditing,” Auditing: A Journal of Practice &Theory, Vol. 28, No. 2,
pp.1–34.

24

Public Company Accounting Oversight Board (PCAOB), 2012, Staff Audit
Practice Alert No. 10, Maintaining and Applying Professional Skepticism in Audits,
PCAOB.

25

Session 5: Diversification of Accounting Standards and Tax
Accounting
Diversification of Accounting Standards
and its Influence on Corporate Income Tax
Masashi Sakamoto
Rikkyo University
The optimal relationship between corporate accounting and corporate tax law is
an old yet a new theme. Throughout history, across countries and regions, much time
has been devoted to discussion regarding how corporate accounting and corporate
taxation should be linked. Beneath all this is a natural supposition that corporate
taxation must be based on corporate accounting. The stronger the link between thetwo, the stronger the influence they exert on each other. The computational structureof corporate taxation becomes increasingly dependent on the corporate accounting
system, while, in turn, the accounting system becomes more influenced by the tax
law. Any changes in one of these systems will have a major impact on the other.
Problems surface when either one or both are altered, thus, disturbing the balancethat has existed between the two.
While the link between the accounting system and tax law has long been a subjectof discussion in Japan, and it is now getting renewed attention against the backdropof the recent changes in corporate accounting system. It is the double tracking ofJapan’s accounting standards that has been attracting attention. While Japan is taking
steps toward international integration of its accounting standards, domestically it
faces an unprecedented situation where multiple accounting standards andguidelines coexist. This raises a variety of issues regarding tax treatment, among
others.
This paper discusses “issues in taxation associated with the increasingly diverse
accounting standards” from the viewpoint of the interpretation of tax law. To have aclear focus, we will not discuss the individual rules on computation. Rather, ourdiscussion focuses on the interpretation of the wording “corporate accounting
standards generally accepted as fair and valid” as it appears in Article 22-4 of the
Corporation Tax Act of Japan.

26Issues of Deductible Expenses for Tax Purpose
under the Diversified Accounting Standards
Kazumi Suzuki
Kobe University
In Japan, there are four statements for accounting standards: the BusinessAccounting Principles and other accounting standards released by the BusinessAccounting Board, the Business Accounting Standards developed by the AccountingStandards Board of Japan (ASBJ), the Accounting Guidelines for Small- andMedium-sized Entities and the General Accounting Standard for Small- andMedium-sized Entities. These accounting standards are classified into two lines: theBusiness Accounting Principle oriented to calculate residual of recovered invested
capital and the Business Accounting Standards oriented to determine periodical
change of net assets reflecting expectations in future. Reported income inaccordance with the former presents real performance and is seen as fixed
distributable income. Reported income under the last is temporally useful for
decision making only when it is disclosed. On the other hand, the JapaneseCorporation Tax Law has been revised considering separations from accounting
under the Company Act in order to make secure of fair and proper determination of
taxable income. Both the accounting standards by ASBJ and tax revisions have
expanded differences of timing between costs, expenses and losses for reporting
purpose and deductible expenses for tax purpose.
This study compares the regulations in the tax law and the court decisions withGAAP under the various accounting standards, then discusses the adaptability tomeasure ability to pay tax. The article 22 paragraph 3 in the Corporation Tax Law
adopts the matching principle in respect with costs and is consistent with the line of
the Business Accounting Principle. In respect with timing of expenses and losses,
however, the tax law adds a requirement that those should be legally fixed. The
timing of expenses and losses for tax purpose are likely to be delayed rather than forreporting purpose because accounting treatments in accordance with the line of theBusiness Accounting Standards often depend on future estimations and fair values.
Both determinations of reported and taxable income cannot avoid uncertainties
due to future prospects. Strict determination of taxable income without uncertainties
deviates from the calculation of residual of recovered capital and distorts themeasurement of ability of tax burden. Rationality of estimations assured by the
independent accounting auditors should be accepted in the determination of taxable
income.

27

Issues of Taxable Units Induced by Diversification of Business
Entities
Miho Furuta
Konan University
We have many choices on managing organization- legal form, nationality, way ofcontrol and so on. In these circumstances, one of subject on tax accounting is to
identify which entities must be imposed to corporate income tax act, not toindividual income tax act. From this viewpoint, this paper tries to describe the natureof taxable unit of corporate income tax in the days of diversification of business
entities.
Nowadays, importance of corporate income tax on entity level increases as asystem of withholdings of member’s income taxation. That is, from the view offictional theory of corporation, its functions are one is members of corporate entity
are not subject to tax before its distribution, and another is taxed income and loss ofcorporations are retained in the corporation until distribute income to members or
adjust by loss carry-forward system. In this condition, we need to consider taxing on
income of group corporations.
In the study of financial accounting, a scope of consolidation is a main issue toconsider the group corporations accounting. And, basically, the group corporations
are treated as one accounting entity no matter how many different types of business
entity in the group. On the other hand, in the tax accounting considerations, the legal
characteristics and member compositions of each entity are issues to be considered
and they are treated as an aggregate of entities. In Japanese corporate income tax
systems, there are many types of consolidation or group calculation such as
consolidated taxation, group-members taxation, pay-through taxation, path-throughtaxation and corporate taxation on each legal entities. Basically, tax systems varywith legal characters of each entity but they may receive different treatment eachother in case of its group member’s composition. And, in spite of its variety ofmember’s legal characters or numbers, every taxable unit have common feature thatis a unit of retaining taxed income or tax loss. That is, not all units have nature ofcorrespondence to legal entity, but all taxable units of corporate income tax havenature of correspondence to corporate tax -the nature of retaining unit of taxed
income or tax loss. Taxing on these units may also work as a system of withholding
tax on BEPS cases.
Based on this analysis, it seems reasonable to support importance of corporate
income tax on each entity level because of its withholding function. However, it
should be also mentioned that the importance of fully adjustment with personal
income tax is increased more and more because of fictional theory of corporation.
28

2014 Annual Conference of JAA
Special Committee
Comprehensive Study on the Dynamism of Economic Society and
the Paradigm Shift of Accounting Systems
Chair: Teruyuki Kawasaki
Konan University
The purpose of this special committee is to study the change of economic society(the dynamism of economic society) and the paradigm shift of accounting systems inJapan (and foreign countries) from various viewpoints, such as accounting theory,
accounting culture, sociology, auditing, and empirical studies.
We organized the dynamism of economic society in the following three points.
(1) The first is the change of economic system. The conventional entities dobusiness and raise funds domestically. On the other hand, the recent entities
trend to do business globally and raise funds overseas.
(2) The second is the change of market economy. The conventional market
economy is characterized as the “product type”, in which the visible goods(finished products) were the leading products. However, the recent market
economy is characterized as the “finance type”, in which financial goods(financial instruments) are leading products.
(3) The third is the change of accountability. The concept of accountability arechanging from “the accountability for shareholders” (stewardship
responsibility) to “the accountability for stakeholders” (information services).
Next, we discussed the contents of paradigm shift in accounting systems andorganized them as the following two fluctuations.
(1) The first fluctuation is the dichotomization of accounting systems. This means
the dichotomization of “the accounting system for large entities” and “theaccounting system for SMEs (Small- and Medium-sized Entities)”.
(2) The second fluctuation is the double-tracking of accounting standards insideeach accounting system. For example, in Japan, while there are four
accounting standards for large entities, there are two accounting standards for
SMEs.
Our interim report is organized from three parts. Part I provides the background of
the dynamism of economic society. Part II explains details of the paradigm shift inaccounting systems (accounting systems for SMEs). Part III explains the paradigm
shift of auditing system and taxation system.

29

Chair:Teruyuki Kawasaki (Konan University)
Members:
Takaya Ueno (Certified Public Tax Accountant)
Hidetsugu Umehara (Meiji University)
Naohiro Urasaki (Kinki University)
Yasuhiro Ohta (Keio University)
Chikako Ozu (Kyushu University)
Tetsuyuki Kagaya (Hitotsubashi University)
Kouji Kurata (Rikkyo University)
Kenji Kometani (Tohoku University)
Junko Saino (kansai University)
Manabu Sakaue (Hosei University)
Nobuhiko Sato (Kumamoto Gakuen University)
Satoshi Sugahara (Hiroshima Shudo University)
Noriyuki Tsunogaya (Nagoya University)
Shoichi Tsumuraya (Hitotsubashi University)
Yusuke Nakajo (Yokohama City University)
Takatoshi Hayashi (Kwansei Gakuin University)
Masataka Hiraga (Aichi Gakuin University)
Yoshihiro Machida (Aoyama Gakuin University)
Observer:Shigeo Ohtsuka (Chiba University)

30

Special Committee
Accounting Policy and Earnings Management by the Management
Chair: Masao Tsuji
Waseda University
This committee empirically investigates accounting policy and earnings
management of Japanese firms from a management accounting perspective. We
carefully review the prior literature to list up the research topics on managers’
discretionary behaviors aiming to shed some light and provide new insights on theaccounting policy and earnings management from a managerial accounting
perspective. This committee investigates the information provider role which
managerial accounting plays in supplying performance management informationthat will help the managers to make decisions.
The final report is organized as follows:Part One – Theory
1 Objectives of the Firms and the Managers
1.1 On the Association of Accounting Policies and Earnings Management
1.2 On the Association of Corporate Governance and Earnings Management
2 Accounting Policies, Earnings Management, and Profit Management
3 Income Smoothing and Earnings Management
4 Financial Restatement and Earnings Management
5 Analytical Analysis of Accounting Information and the Behaviors of Managers
5.1 Investment Efficiency and Earnings Management
5.2 On the Behavior of Managers: A Contract Approach
6 Capital Market and Earnings Management
6.1 Literature Review
6.2 Value of the Firms and Earnings Management
7 Audit Quality and Earnings Management
Part Two – Empirical Studies
8 Earnings Distribution and Earnings Management
9 Retirement Benefits and Earnings Management
10 Ratchet Effect and Income-decreasing Earnings Management
11 Corporate Social Responsibility and Earnings Management
12 Consolidated Segment Earnings and the Behaviors of Managers
13 Director Duality and Earnings Management
31

14
15
16
17

Board Age, Risk Taking, and Earnings Management: A Governance Perspective
Debt Convents and Earnings Management
Going Concern and Earnings Management
Power to Detect Earnings Management based on Accruals Models

Reference
Part One of the final report discusses the objectives of the firms by asking
fundamental questions such as how managers can archive these objectives bychoosing their accounting policies and what kinds of policies can create value forshareholders. This committee defines “accounting policy” as the choice ofaccounting decisions by managers in order to archive firms’ performance objectives.
“Earnings management” is defined as the process of managers’ uses of discretion toarchive target earnings by choosing accounting policies that are within the range ofthe Generally Accepted Accounting Principles. We consider “earnings management”
through real activities as a separate concept from “profit management” which seeks
optimal allocation of resources and optimization of managerial effects. Also, by
saying within the range of GAAP, we do not consider restatement as earnings
management.
In Part Two of the final report, we consider accounting choices by the managers
and conduct empirical researches from various aspects. Earnings management could
be initiated by a group of managers rather than by a single manager andimplemented by other staff managers. The outcome of earnings management could
be affected by unexpected factors. Therefore, it will be difficult to carry out
empirical researches without a strong theoretical support. We hope that our research
can be the building blocks for future research that wishes to expand the scope of
earnings management research.

32

2014 Annual Conference of JAA
Subject Research Committee

Transformation of Public Management andthe Functions of the Accountancy
Chair: Kenji Shiba
Kansai University
Member of the Committee
Chair:

Kenji Shiba

Kazuo Aida
Nobuo Azuma
Kenji Izawa
Morihiko Umeda
Shigeo Ohtsuka
Akira Omori
Ryota Kaneko
Mari Kobayashi
Hiroyuki Takano
Masafumi Fujino
Takami Matsuo
Kiyoshi Yamamoto
Toshinobu Yoda

Kansai University

Keio University
Board of Audit of Japan
Ernst&Young ShinNihon
Chukyo University
Chiba University
Yokohama National University
Kokugakuin University
Waseda University
Musashino University
Nihon University
Kobe University Graduate School of Business
Administration
The University of Tokyo, Graduate School of
Education
Hosei University

Abstract
We believe that the establishment of the study of public sector accounting isurgently necessary based on our idea that while the transformation of publicmanagement changes the functions of accounting and accountancy, the functions ofaccounting and accountancy would also lead to the transformation of publicmanagement. Whereas we emphasized the functions of public sector accounting inlast year’s interim report, in the final report we took on the challenge of investigating

33

the functions of the study of accounting. One function of public sector accounting isthe double-entry recording feature as a technical function. It is believed that there isan interest coordination function and an information provision function in social
functions. On the other hand, it is considered that the functions of the study of public
sector accounting include, as in other studies, a truth-seeking function and a problem
solving support function.
In the final report, Toshinobu Yoda (Hosei University) represented the members toreport on the method of theorizing public sector accounting and the study ofaccountancy from the perspective of multifactorial attributes of citizens, who areimportant stakeholders of public sector accounting and whose attributes include
service recipient, voter, and taxpayer and resource provider.
Takami Matsuo (Kobe University) followed by highlighting the importance ofplanning and of an operating performance control system that aimed for optimizationof cost benefit based on the diversification of administrative services and thedecentralization of planning functions, and argued that the establishment of a budget
management scheme that used sector-by-sector accounting, output performance,various cost concepts related to achievements and accrual accounting was important.
Thirdly, Shigeo Ohtsuka (Chiba University) presented a model for utilizing
financial statements after pointing out issues such as the divergence between asset
evaluation in financial statements and asset use at local governments, the lack ofevaluation standards for results information, and the lack of linkage with the budget
system.
Finally, Nobuo Azuma (Board of Audit of Japan) argued that government
accounting should be positioned by the relationship with the scheme of financial
democracy, and pointed out issues in the budget control and financial reporting of
independent corporation accounting, such as the existence of a cost progress standard
and that output performance indicators and outcome performance indicators for
performance evaluation were not always set up for each clerical business.
We finished our research with the final report entitled “Transformation of Public
Management and the Functions of the Accountancy” at the Yokohama National
University. Detailed descriptions of all chapters are omitted here.

34

2014 Annual Conference of JAA
Study GroupManagement Accounting for Enterprise Group Management
Chair: Tomoaki Sonoda
Keio University
Japanese companies used to give weight to the performance of their parent
companies, but since the late 1990s, they have changed their management styles andhave attached importance to the enterprise group’s performance. Four events
triggered this change:
・lifting of the prohibition on establishing holding companies
・establishing shared services centers at many Japanese companies
・transition of the main financial statements to consolidated financial statements
・trends in enterprise integration, M&As, divestiture of business, and overseas
expansion
These changes at Japanese companies have had an important impact onmanagement accounting research. They have come to need a corporate group-wide
perspective. In view of this trend, our study group has set two research subjects.
The first subject is consistency between total optimization of the enterprise groupas a whole and partial optimization of each subsidiary company or eachconsolidation segment that is a suborganization of one enterprise group. As long as
parent companies use profits as performance indicators of the subsidiary companies,
it is difficult to realize total optimization of the enterprise group as a whole.
Management accounting can contribute to figuring out the mechanism of thisinconsistency and to achieve total optimization.
The second subject is a change of management accounting methods. Management
accounting methods are usually aimed at internal availability in one company, butsome research has broadened the ranges to include an enterprise group. For example,
segment accounting, one of the typical management accounting methods, mainly
measures each division’s performance in one company. On the other hand,consolidation segment accounting has not only the characteristics of segment
accounting but also characteristics of consolidation accounting, which has anenterprise group perspective.
In our interim report, each author studies one theme from the viewpoint of either
or both research subjects. The interim report deals with human resourcesmanagement, knowledge management, transfer pricing taxation, environmental
accounting, loyalty programs, and corporate group valuation.

35

Study GroupA Study on Accounting Theory Construction by Theory Research
Chair: Kiyotaka Ueno
Chuo University
The purpose of this study is to acquire the thought and methodology to constructaccounting theory and to indicate future accounting theory study and theory
construction by studying representative theory of accounting researchers. In order toattain these research purposes, this study focuses on the following tasks:(1) Take up the representative accounting researchers and present those theories
in detail.
(2) In that case, focus on accounting thought and methodology of each theory,
present those contents in detail and consider the influence of those theories onsubsequent accounting.
(3) Consider the accounting purpose, accounting structure, accounting
measurement, income concept and accounting function of each theory indetail when we examine the accounting thought and methodology.
(4) Consider the social background of each theory and explicate the relationshipbetween contemporary accounting and each theory, because the accounting
thought and methodology relate to the social and economical situation at thattime.
(5) Try to logical integration of accounting theory construction, explicate thetypes of accounting theory construction and construct a general theory inaccounting.
The final report contains part Ⅳ: accounting measurement controversy, part Ⅴ:
accounting and internationalization, part Ⅵ: development of positive accounting
study and final chapter: construction of accounting theory.
In part Ⅳ, as accounting theory that took part in the discussion of accounting
measurement after 1980 and discussed acquisition cost accounting, current costaccounting, fair value accounting and so on, theories of Anthony, Solomons,
Whittington, Barth, Nissim and Penman, Christensen and Demski are explained.
In part Ⅴ, as accounting theory that became important accounting theme in thepresent accounting and discussed internationalization of accounting, theories ofNobes and Benston are described.
In partⅥ, as accounting theory that began about 1970 and became popular in thepresent day (positive accounting study), theories of Ball and Brown, Beaver, Watts
and Zimmerman, Feltham and Ohlson, Dechow are explained.
The final chapter searched for the methodology of accounting theory construction
36

based on the theories mentioned above. This chapter described followings.
(1) Analyzed those accounting theory. As the important field of accounting
theory is positive theory and normative theory, we classified accounting
theory in those each field.
(2) Tried construction of accounting theory by logically integrated positive
theory and normative theory through those common factors.
(3) Suggested future research direction of accounting theory as social science by
elucidated the characteristics of accounting theory explicated.
Chair:
Kiyotaka Ueno (Chuo University)
Members:
Chizuru Asano (Meiji University)
Hiroshi Ishiyama (Yamanashi Prefectural University)
Noriko Ichikawa (Surugadai University)
Masayoshi Ono (Chiba Economic University)
Tomohiro Kaneko (Toyo University)
Katsuhiko Shimamoto (Kwansei Gakuin University)
Hirosi Nagashima (Rissho University)
Yoshimoto Nakano (NJK Corporation)
Masaaki Narikawa (Tohoku Institute of Thecnology)
Tetuji Nishiyama (Takachiho University)
Kenji Hayashi (Nihon University)
Jun Hishiyama (Senshu University)
Atsuhito Masiko (Toyo University)
Akihiro Yamada (Chuo University)
Tomoya Yoshida (Saitama University)
Ryusuke Watanabe (Kanto Gakuin University)37

2014 Annual Conference of JAA
International Session

A New Test of Detecting Ability of Earnings Management Models
Giseok Nam, Hankuk University of Foreign Studies
June Woo Park, Ph.D Student, York University

New Models and the CFO Approach to Performance Control in EM
Studies
Soon Suk Yoon, Western Illinois University
Hyo Jin Kim, Jeonju University
Gregg S. Woodruff, Western Illinois University

The Relationship between R&D Capitalization and Subsequent
R&D Investment Decision: The Monitoring Role of Board of
Directors
Liu-Ching Tsai, National Chia-Yi University
Chaur-Shiuh Young, National Cheng Kung University
Chia-Hui Chen, Ph.D Student, National Cheng Kung University
Hui-Wen Hsu, Feng Chia University

Ownership Structure and Managerial Controls
Joanna Ho, University of California, Irvine
Cheng-Jen Huang, Tunghai University
Christo Karuna, University of Houston
Anne Wu, National Chengchi University

38

2014 Annual Conference of JAA
Regional Reports

Hokkaido Region
Hiroshi Yoshimi
Hokkaido University
The regional meetings were held in 2014 as follows.
1. The 85th Regional Meeting at Hokkaido Citizens Actives Center on 24 May,
2014.
(1)

“Influenceof

DoubleAccount

SystemforImperial

Government

Railway,”Masato Nakamura, Hokkaido University.
(2) “Quantitative Dimension Analysis of Management Accounting Information:with a Focus on J costs,”Satoshi Hatamoto, Otaru University of Commerce.
(3) “Problems in First-time Adoption of International Financial ReportingStandards,”Koichiro Matsumoto, Hokusei Gakuen University.
2. The 86th Regional Meeting at Hokkaido University on 1 November, 2014.
(1) “‘Interests’ and the AICPA Code of Professional Conduct,” Osamu Murakami,
Hokkaido University.
(2) “The Role of Accounting Systems in Management Control Systems,” Masahiko
Sakai, Otaru University of Commerce.

39

Tohoku Region
Masahiro Shiseki
Aomori Public University
In 2014, following meetings were held.
1. The 86th Meeting, July 12, 2014 at the Hachinohe Portal Museum “hacchi”(1) “Utilization of Accounting Information in Agribusiness”
Shuko Naito, Hirosaki University(2) “The Impact on the Investment of Lease Accounting Standards Change:
Analysis of statistical Survey by Ministry of Finance”
Naoki Sato, Aomori Public University(3) “The Relation between Accounting Conservatism and Debt Contracting”
Yoshitaka Ohashi, The University of Aizu
(4) “Accounting Issues on Decommissioning Nuclear Power Plant”
Tomohisa Hirano, Fukushima University
2. The 87th Meeting, November 8, 2014 at Fukushima College Ekimae Campus(1) “Empirical Study on Comprehensive Income and Dividend Policy in small andmedium-sized Japanese firms: The Study focusing on the percentage of Net
Income and Other comprehensive Income”
Akihiro Nedate, Fukushima University(2) “The Feature of Management Behavior in Reconstructive Process from theGreat East Japan Earthquake”
Tomoko Okano and Shinsuke Tamura, Ishinomaki Senshu University(3) “On Rational Matching Concept in Tax Effect Accounting”
Shuhei Kinugawa, Fukushima University(4) “The Dichotomization of Accounting System in Japan and the State of Foreign
Countries”
Teruyuki Kawasaki, Konan University

40

Kanto Region
Naoki Murata
Nihon University

The 62nd Kanto regional meeting was held at Nihon University on December 6,
2014.The main theme of the meeting was “The Implications of Japanese AccountingStandards through a narrow Gap between the Japanese Standards and IFRS.”
The discussions were coordinated by Kenji Tanaka, Meiji University.
The titles of the presentations and the names of the presenters were as follows:(1) “Information properties of IFRS and the choice by Japan,” Toshifumi
Matsumoto, Waseda University.
(2) “The Dynamics of Standard-setting in IASB’s Revenue Recognition Project,”Yasuhiro Yamada, Rikkyo University.
(3) “Earnings Attributes, Institutional Factors, and Accounting Standards inJapan,”
Tetsuyuki Kagaya,Hitotsubashi University.

41

Chubu Region
Akihiro Noguchi
Nagoya University
The regional meetings were held as follows;
1. The 133rd Regional Meeting at Nagoya University on July 5, 2014.
(1) “Elements Influencing the Accounting Standards Convergence towards IFRS in
China”, Miao Xinyun, Graduate Student of Nagoya University.
Discussant: Hu Dan, Nagoya University.
(2) “Contribution of Francis M. Wheat on the Reform of Financial Reporting
Systems in the United States”, Kazumasa Takemori, Chubu University.
Discussant: Michimasa Satoh, Aichi Gakuin University.
2. The 134th Regional Meeting at Meijo University on December 6, 2014.
Concurrent Presentation(1) “Patient and Healthcare Workers’ Safety in Specialty Outpatient Service andHospital Budgeting：A Study of Personal Distribution of Healthcare Provider
for Dialysis based on Medical Safety Risk and Departmental Budget for a
Different Time Zone in Consideration of the Said Personal Distribution”, Toru
Hashiguchi, Nihon Fukushi University, and Mukai Shinji, Suzuka General
Hospital.
Discussant: Hiroshi Ozawa, Nagoya University.
(2) “Legitimacy of Accounting Standard-setting Board: Financial Crisis and the
IASB”, Junta Mori, Aichi Shukutoku University.
Discussant: Noriyuki Tsunogaya, Nagoya University.
Plenary Session
Theme: New Trends for Disclosure of Business: Focus on Sustainability
Moderator: Tatsuhiko Tashiro, Meijo University(1) “Utilization and Reporting of Environmental Performance Indicator for
Business”, Akira Higashida, Meijo University.
(2) “Environmental Activities and Disclosure in Toyoda Gosei”, Takeyoshi, Muto,
Toyoda Gosei.
(3) “Contributions for Sustainability by CPAs”, Kaoru Ogawa, Tokai Associationof JICPA.
http://www.soec.nagoya-u.ac.jp/~noguchi/chubu/english.htm

42Kansai Region
Naohiro Urasaki
Kinki University
The 64th Kansai regional meeting was held at Kinki University on December 13,
2014. The main theme of the meeting was “Issues and Development of Accounting
Research in the Era of Accounting Systems Reform.”
Discussion of the plenary session was coordinated by Tatsuo Inoue, Kwansei
University. The titles presented and panellists were as follows.
1. “Management Control System for Intangibles in Small Companies: The Use ofReporting System on Intangible Assets.,’’ Yoshinobu Shima, Kinki University
2. “The Future of Empirical Accounting Research Using Big Data,” Kazuhisa
Otogawa, Kobe University
3. “The Viewpoint of Corporate Governance and Accounting Ethics : As the Caseof Authority to Decide Election and Dismissal of Auditors, and Audit Fee, ”
Yasuhide Hrada, Shitennoji University
4. “The future perspectives of accounting education research: current research
trend under IFRS principle-based approach,” Satoshi Sugahara, Hiroshima
Shudo University.
In the morning, we had two presentations at the concurrent session coordinated by
Yoshimi Honda, Osaka University of Economics.
1. “Derecognition of Non-Financial Assets,” Takashi Fujita, Ritsumeikan Asia
Pacific University
2. “Disclosure of Risk Information in Four Key Countries,” Fu Xin, Tottori
University of Environmental Studies.

43

Kyushu Region
Keiichi Oishi
Kyushu University
The Japanese Accounting Association (JAA) Kyushu regrional confeences are
regularly held twice a year – in July and March. This academic year, the summer
conference was held at Kyushu International University, and the early spring
conference was held at Nakamura Gakuen University.
1. The 94th meeting at Kyushu International University, on 19th July, 2014.
(1) “The Research on Accounting Regulation Reform in the UK of 1980s”, Yuki
Okamura, Kagoshima Prefectural College.
(2) “Verification of Introduction Effects of Amoeba Management System”,
Okihiro Maruta, Kyushu University.
(3) “On the FASB's Conceptual Framework”, Isamu Iwasaki, Kyushu University.
(4) “Report on Japanese Taxation by the Shoup Mission and the Role of
Accounting”, Toshifumi Yamashita, Saga University.
2. The 95th meeting at Nakamura Gakuen University, on 17th March, 2015.
(1) “A Study on Macro Hedge Accounting”, Wang Lin, Fukuoka University.
(2) “The Charge Revision in Electric Power Industry after the Great East Japan
Earthquake and the Problem Point of Rate-of-Return Regulation”, Manabu
Takano, Seinan Gakuin University.
(3) “Interpretation problem of the generally accepted accounting standard seen ina recent case”, Ichiro Iwatake, Kumamoto Gakuen University.
(4) “The Origins of Teaching and Learning of Accounting in Modern Japan”,
Eiichiro Kudo, Kumamoto Gakuen University.

44