Japanese
ACCOUNTING FORUM 2018

No. 26

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© 2018, Japan Accounting Association

Japanese ACCOUNTING FORUM 2018
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 2018is the 26th issue of Japanese ACCOUNTING FORUM.
This issue contains the summary of presentations at the 76th Annual Conferenceof JAA which was held at ANA Crowne Plaza Hotel Hiroshima & Higashi-Senda
Campus in Hiroshima University on September 22-24, 2017. It also includes thereports of regional activities of JAA during the 2017 academic year.
I sincerely hope that Japanese ACCOUNTING FORUM serves the readers tobetter understand the activities of JAA.
Katsuhiko Kokubu
Chairman of the International Committee andManaging Editor of Japanese ACCOUNTING FORUM,
Japan Accounting Association

Contact: Professor Katsuhiko Kokubu
Graduate School of Business Administration
Kobe University
2-1, Rokkodai-cho, Nada-ku,
Kobe 657-8501, JAPANkokubu@kobe-u.ac.jp

1

JAPAN ACCOUNTING
Board of Directors (2018)

President:
Hisakatsu Sakurai,

ASSOCIATION

Kwansei Gakuin University

Directors:
Kunio Ito, Hitotsubashi University
Yoshihiro Ito, Waseda University
Shigeo Ohtsuka, Chiba University
Kazuhisa Otogawa, Kobe University
Hiroshi Obata, Hitotsubashi University
Teruyuki Kawasaki, Konan University
Masato Kikuya, Hosei University
Yasuyoshi Kurokawa, Senshu University
Katsuhiko Kokubu, Kobe University
Masanobu Kosuga, Kwansei Gakuin University
Shinya Saitou, Yokohama National University
Kazumi Suzuki, Kobe University
Kenji Tanaka, Meiji University
Yusuke Nakajo, Yokohama City University
Ichiro Hoshino, Hiroshima University
Takami Matsuo, Kobe University2

Japanese ACCOUNTING FORUM 2018

International Committee and 2016-2018 Editorial Board
Managing Editor:
Katsuhiko Kokubu,

Kobe University

Deputy Managing Editor:
Hiroshi Obata, Hitotsubashi University
Editors:
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

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

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Japanese
ACCOUNTING FORUM
No. 26, 2018
CONTENTS
Preface(1)

Katsuhiko Kokubu

Report2017 Annual Conference

Ichirou Hoshino(9)

Plenary Session: Changes in the Economic Environment and Issues of
Accounting Research
Session 1: Accounting Information as Large-Scale Data
Large-Scale Accounting Data and Capital Market Research
Kazuhisa Otogawa (11)Large-scale Accounting Data and Cross-country Research
Masahiro Enomoto(12)Large-Scale Accounting Data and Management Compensation Research
Shota Otomasa (13)Session 2: Accounting for Financial Instruments and Accounting by Financial
Institutions
Application of Impairment and Hedge Accounting of IFRS 9 to the Financial
Institutions
Tatsumi Yamada (14)Current Situation and Future Direction of Bank Management Accounting:
Effects of Accounting Standards and Financial Regulation
Masayuki Tanimori (16)6The Current Issues on Financial Instruments Accounting from the View Pointof Risk Management and Financial Regulations
Yasuhide Yoshida (17)Session 3: Fraudulent Accounting and Accounting Scandal
Exploring a Framework for Studying Accounting Frauds: From the Viewpointof Management Accounting
Kenji Yasukata (18)
Corporate Fraud and CPA Audit
Sugako Ijima(19)

Fraud of Public Sector: Current Situation and Challenges based on Annual
Audit Reports of BOA
Nobuo Azuma (20)Session 4: The Role of Not-for-Profit Accounting in Medical Welfare
Disclosure of Financial Accounting Information of Medical Welfare Businesses-Possibility of Utilizing Common FrameworkToshie Ishizu (21)Current Development of Managerial Accounting in Health and Welfare Sector
under Changing Business Environment
Ko Arai (23)
Relationships between Accounting for Medical and Welfare Services andPublic Sector Accounting: From a Perspective of Macro Policy
Kiyoshi Yamamoto(24)

Special Committees
Comprehensive Study on the Design of Accounting System (Interim Report)
Shinya Saito (25)Comprehensive Research on Strategic Management and Management
Accounting (Final Report)
Masanobu Kosuga

7

(27)

Study Groups:
Many-sided and synthetic research of the accounting in China: Based on thehistorical and comparison institutional analysis (Interim Report)
Ichiro Mizuno (29)The impact of integrated reporting on management accounting (Final Report)
Yoshihiro Ito (31)Expansion of Disclosed Information and the Diversification of Audit
Framework (Final Report)
Yoshinao Matsumoto(33)

International Session(35)

Doctoral Colloquium Session(37)

Regional Reports
Hokkaido Region

Hiroshi Yoshimi(38)

Tohoku Region

Shuhei Kinugawa(39)

Kanto Region

Koji Kurata(40)

Chubu Region

Yoshiteru Minagawa(41)

Kansai Region

Toru Kotani(42)

Kyushu Region

Keiichi Oishi

(43)

8

2017 Annual Conference of JAA
Report2017 Annual Conference
Chairman of 2017
Annual Conference

Ichirou Hoshino
Hiroshima University

The 76th conference of Japan Accounting Association (JAA) was held at
Hiroshima University first time. This conference was held at ANA Crowne Plaza
Hotel Hiroshima & Higashi-Senda Campus in Hiroshima University on September
22-24, 2017.
After consideration with the preparatory committee, the main theme of this year’s
conference was set as “Changes in the Economic Environment and Issues of
Accounting Research.” In this conference, we set up four sub-themes based on theseunifying themes. It is “Accounting Information as Large-Scale Data,” “Accounting
for Financial Instruments and Accounting by Financial Institutions,” “Fraudulent
Accounting and Accounting Scandal” and “The Role of Not-for-Profit Accounting in
Medical Welfare.”Even though “Change in the Economic Environment” is considered to havevarious elements and aspects, in the unification topic of the convention this time, it isthought that the preparation committee of the 76th convention meeting regards thesefour. We planned to investigate the changes in the economic environment related to
sub-themes and the problems of accounting research and accounting system. We also
keep in mind that discussions in a unified theme discussion will be intertwined.
At the special lecture meeting, we ask the speakers related to one or more of thesefour sub-themes. The speakers are Ms. Aiko Sekine (President of the JapaneseInstitute of Certified Public Accountants) and Mr. Shigeru Tsuyoshiya (Chief
Director of the Social Welfare Organization Saiseikai Imperial Gift Foundation).
With regard to international sessions, in cooperation with the International
Exchange Committee of this academic society, we have established an English reportby members of the Korea Accounting Academy Association and members of the9Taiwan Accounting Academy Association as well as English reports by members of
this society as usual during the past several years. Furthermore, based on the fact that
there are English reports by graduate students, we established the “International
Student Session.” We hope that it will help internationalization of the Society.
In the IFRS session, we decided to develop a symposium-style discussion by four
researchers on the “IFRS endorsement.”
Not limited to this society, in academic societies and research activities, it is vitalto have free and open-minded or open-minded discussions without denying thediversity of research topics and research approaches. We believe that denial ofdiversity and being dogmatic are suicidal acts in the academic world. We believe that
free and open discussion and exchanges will be aggressively developed at thisconference and this time at the contest, without falling into such a collapse.

Member of the preparatory committee of the 76th conference of Japan Accounting
Association.
Chairperson:
Ichirou Hoshino
Committee Members:
Koichi Hayashi
Jaewook Kim

102017 Annual Conference of JAA
Plenary Session: Changes in the Economic Environment andIssues of Accounting Research
Session 1: Accounting Information as Large-Scale Data
Large-Scale Accounting Data and Capital Market Research
Kazuhisa Otogawa
Kobe University
I report the empirical results of our joint research with Professor Toshio Moriwaki.
We specify the accurate time stamps when disclosure documents such as Summaryof Financial Results (Kessan-Tannsin) and Annual Securities Report are released
through the Internet, and then examine the stock market reaction around theannouncement time at one minute intervals. We find that there are large pricechanges and trading volume increases immediately after the Summary of Financial
Results is released through the TDNet, but observe no price changes and volume
increases just before and after the Annual Securities Report is announced throughthe EDINET. We next compare the stock market reaction when the Summary of
Financial Results is released during trading and non-trading hours. Stock pricechanges and volume increases to earnings releases during trading hours are larger
than ones during non-trading hours. We also document that the stock market reaction
to the release of Summary of Financial Results is faster and larger in the period
when the Tokyo Stock Exchange works the new trading system called as Arrowheadto dramatically enhance order processing capabilities. As our research is ongoing,
we need to make some additional tests to draw a strong conclusion. Taking thislimitation into account, these results suggest that under the environment that
accounting information is disseminated instantaneously via the Internet and highfrequency trades is prevailing in the stock market, individual investors are
disadvantageous because they have fund and time constraints. To overcome it,
individual investors can make their investment decisions from the long term
viewpoints, and/or ask professionals such as fund managers of mutual funds forinvestment advices. Therefore, I indicate that very important research issues in the
future capital market research are (i) fundamental analyses, which explore the usageof accounting information useful for long-term investments, and (ii) financial
reporting of mutual funds, which reduces the information asymmetry between fundmanagers and individual investors.

11

Large-scale Accounting Data and Cross-country Research
Masahiro Enomoto
Kobe University
A growing body of literature has used large-scale international databases to focus
on cross-country differences in financial reporting. Earnings quality displays themost notable differences and many researchers pay particular attention to it.
Numerous studies have demonstrated the determinants of earnings quality at
individual country level. Factors that affect earnings quality, such as the relationshipbetween managers, debtholders, and stockholders, and corporate governance, vary
according to the institutional and cultural environment in each country. However, inthe context of an individual country, these factors are ignored because they effect all
firms operating within that country. Therefore, international comparison analysis isuseful to explore the factors affecting earnings quality at individual country level.
This study reviews the earnings quality research using an international database anddiscusses the development of future research in this area.
I summarize the previous literature in the following three areas: (1) the
relationship between earnings quality and the institutional and cultural environment
in countries, (2) the improvement or deterioration of earnings quality by adoption of
IFRS, and (3) the influence of each country’s institutional factors on the relationshipbetween earnings quality and IFRS adoption.
In summary, the previous literature shows that in general, firms in common law
countries, and countries with stronger investor protection and higher financial
development tend to have higher earnings quality. Second, whether IFRS adoption
improves earnings quality or not has been inconclusive. Third, previous studies
report that institutional factors, especially investor protection, affect the relationships
between earnings quality and IFRS adoption.
I propose future research in an international setting from four viewpoints; (1)interaction within a single and cross-country setting, (2) effect of changes inearnings quality through IFRS adoption on the contracting role of accounting, (3)cross-country research on non-listed firms, and (4) increase of data availability frominternational databases.
There are still many challenging topics left in cross-country research. The
availability of international data limits the development of our analysis. I believethat an increased availability of international financial databases will facilitate more
opportunities for international comparison studies.

12

Large-Scale Accounting Data and Management Compensation
Research
Shota Otomasa
Kansai University
This study examines the role of accounting information in determining
management cash compensation and provides much evidence of empirical analyses
that accounting earnings is one of the chief performance measures in managementcompensation contracts. Then, I explore new areas in accounting research, as it islikely to be filled with useful disclosure from corporate governance information
including management compensation.
Managerial pay has become a controversial public issue in recent years.
Contract-based accounting research suggests that the key to aligning managementcompensation with shareholder interest is to increase the sensitivity of managerial
pay to firm performance. Managerial pay practices play a role in improving
corporate governance and maximizing shareholder wealth, while Japanese listed
firms are criticized as being often paid a considerably high degree of fixedcompensation such as salary relative to variable compensation.
However, shareholders are conscious of improving compensation practices bylinking pay more directly with performance outcomes. Annual shareholders’meetings in Japan have to pass a resolution on the executive cash compensation
payable to all board members if there are no prescriptions regarding cash
compensation in the articles of incorporation. The meeting places an upper thresholdon the total amount of the cash compensation and delegates the distribution to each
executive below the cap to the board. Imposing board member compensation
ceilings is common in Japan. Under Japanese compensation practice, most previous
studies on Japanese executive compensation have found a positive relationshipbetween management compensation and accounting performance.
In addition to cash compensation, stock and option grants with performance-based
vesting provisions are likely to be prevalent since the introduction of Japan’s
Corporate Governance Code, which seeks to motivate managers and enhance thefirm’s performance. Although the use of stock-based compensation plan will provide
strong incentives for managers to lengthen their time horizons, these studies are stillin the early stage of development in Japan.

13

Session 2: Accounting for Financial Instruments andAccounting by Financial Institutions
Application of Impairment and Hedge Accounting of IFRS 9
to the Financial Institutions
Tatsumi Yamada
KPMG AZSA LLC and Chuo University
The revised IFRS 9 Financial Instruments is due to be effective 1 January 2018,
which
will
impactactivities
ofmajor
financial
institutions(global-systemically-important-banks: G-SIBs) all over the world. The revised
Impairment and Hedge Accounting standards among other requirements in IFRS 9
will require enormous changes in their internal control systems to ensure an
appropriate implementation. At the conference, focuses were given to the
explanation of the new standards and other pronouncements released by the Global
Public Policy Committee (GPPC) of the Big Six accounting firms.
Impairment Standards
The new model which is called the ‘expected credit loss model’ takes a relative
approach instead of the ‘incurred loss model’ which takes an absolute approach in
IAS 39 Financial Instruments: Recognition and Measurement. Under the new model,
at the initial recognition, an entity is required to measure a loss allowance offinancial assets which are measure at amortized costs at an amount equal to 12
months’ expected credit losses (ECL). At each reporting date, and entity is also
required to measure the loss allowance at an amount equal to the lifetime ECL if thecredit risk on that financial instruments has increased significantly since initialrecognition (the relative approach). As the new approach is so different from thecurrent practice based on the absolute approach, well-in-advance preparation isneeded. In response to the request by the Financial Stability Board, the GPPC
released the two documents in 2016 and 2017, which give recommendations to thechairs of audit committees of G-SIBs to make sure they should take responsibilities
for appropriate implementation of these standards by the end of 2017.
Hedge Accounting Standards (HAS)
The revision of the HAS in IFRS 9 was complete in 2013 except for the macro
hedging.
The features of the revision is to make HAS easier for an entity, which means that
HAS in IAS 39 was more stringent in the requirements to be qualified as eligible for
HAS such as the hedging relationship should be within 30-125% range to be an14

effective hedge. The requirements in IFRS 9 HAS give more freedom to the entity.
The entity can make up its own effectiveness criteria for its hedge accounting, forexample. New standards regarding the macro hedge are also expected to accept
current practices of G-SIBs more broadly.

15Current Situation and Future Direction of Bank Management
Accounting: Effects of Accounting Standards and Financial
Regulation
Masayuki Tanimori
Senshu University
Under current Bank Management Accounting, risk management control isinsufficient, and it is a feedback function based on historical financial accounting
information. As a result of examining the influence of ECL (Expected Credit Loss)and RAF (Risk Appetite Framework), it was found that Bank Management
Accounting goes in two directions as follows.
The first direction is to apply the target level of risk that should be aggressively
taken for customer, region or profit in Bank Management Accounting. In the
integrated risk management that is the basis of the current Bank Management
Accounting, there is no target level of risk even if there is a risk limit. That is, incurrent Bank Management Accounting, risk is only an object to be avoided, and it is
not a risk (as a profit opportunity) to raise profit. On the other hand, RAF requires
not only risk avoidance but also risk appetite (risk appetite: target level of risk) for
each bank to tackle work on the basis of similar problem awareness. Therefore, byincorporating RAF into the framework of Bank Management Accounting, risk
management control can finally be realized.
The second direction is to apply the feedforward function in Bank Management
Accounting. Current Bank Management Accounting calculates various decision
information and uses it for management, and it is also used for segment disclosure
information and impairment accounting from the viewpoint of management
approach. Therefore, Bank Management Accounting is management control by
feedback function based on actual information. In the future, if feedforward
becomes possible in the same way as ECL as well as feedback, it will be possible totake a precautionary measure, and it is possible to more certainly achieve the target
even under conditions of high uncertainty.
Finally, it is expected that the banking business will change dramaticallydepending on FinTech (a function that integrated fi nancial and IT technologies), but
Bank Management Accounting proactively incorporates new technologies such as
IoT and AI, it is expected to evolve to have risk management control andfeedforward function.

16

The Current Issues on Financial Instruments Accounting from theView Point of Risk Management and Financial Regulations
Yasuhide Yoshida
Chukyo University
Financial instruments accounting is high affinity with risk management. In
general, risk management of the banking is closely related to financial regulationsuch as Basel Capital requirement. Relationships between framework of banking
accounting, risk management and regulation are complement and mutual
dependence. But, each inherent purposes are different, it is difficult that manyfinancial instruments accounting issues to be resolved by single framework.
Therefore, study of financial instruments accounting need to adopt comprehensive
approach.
I point out three typical financial instrument accounting issues to be resolved bycomprehensive approach.
First, Macro hedge is the issue caused by gap between accounting and risk
management. Portfolio revaluation approach on IASB discussion paper in 2014
introduced a way of thinking of risk management to accounting frameworkcomprehensively. Introduction of risk management information in macro hedge
accounting is adoption of management approach, and the advantage to involve thefault at the same time, influential consideration by a trade-off relation is needed.
Second, the financial regulation to have relation that it is close to risk
management of the banking may have an influence on the development of financial
instruments accounting. The impairment rule of IFRS9 is conscious of the banking,such as 90 days threshold of default agree with Basel regulation. Bias to the banking
in financial instruments accounting may be influenced non-banking industry
accounting. Therefore, Standard setting not to be unbalanced in of the specificindustry is needed for development of financial instruments accounting.
Finally, the estimates fair value of financial products without market price andmeasurement of expected credit loss are used risk management information. The
reflection of information inside the company contributes usefulness of decision
making, but the reliability is a problem from subjectivity of the management. One ofcurrent resolution is expansion of the disclosure for risk management system withcareful consideration to auditing.

17Session 3: Fraudulent Accounting and Accounting Scandal
Exploring a Framework for Studying Accounting Frauds: From theViewpoint of Management Accounting
Kenji Yasukata
Kindai University
Many accounting frauds and scandals have been reported. The purpose of mysession is to discuss and explore the framework with which we, academic
researchers, can study accounting frauds from the management accounting
perspective. Looking into the reports regarding accounting frauds, we realize thefact that they took place at divisions or departments in organizations, suggesting thatthose who are responsible for the budget targets and evaluated based on achievementof the targets are involved in the accounting frauds. From the viewpoint ofmanagement accounting, management control systems, such as budgeting systems,
performance evaluation systems, and compensations systems, induce organizational
behavior; that is, organizational behavior is a consequence of those systems
designed to control employees’ decisions and behavior. Accounting frauds, therefore,
can be interpreted as a negative side effect of management control systems.
However, this side effect has been out of the scope of management accounting
research, even though management accounting literature potentially provides a lot of
insights into studying accounting frauds. Recent research, for instance, pays
attention to the situations where employees are encouraged to report honestly. I
believe that management accounting research plays an important role in studying
accounting frauds.

18

Corporate Fraud and CPA Audit
Sugako Ijima
Kurume University
The purpose of this paper is to study the expectation gap of CPA audit in Japan,
and show the key to filling the gap by analyzing disclosures of corporate fraud byJapanese companies.
Legally and academically, corporate fraud is clearly classified into “fraud” or“error” while company practices in Japan use the term “inappropriate accounting” inaddition to these two terms. This study investigates the timely disclosure of firms on
the Tokyo Stock Exchange from 2007 through 2016 by extracting disclosures that
include the terms—error, fraud, or inappropriate accounting. As a result, 471
companies used the term “error,” 352 companies used the term “inappropriate
accounting,” 69 companies used the term “fraud,” and 17 companies used both theterms “inappropriate accounting” and “fraud.” In timely disclosures, companies
tended not to use the term “fraud,” avoiding the word as much as possible without
fully defining the terms “error,” “fraud,” and “inappropriate accounting.”
CPAs in Japan conduct audit in accordance with “Generally Accepted AuditingStandards (GAAS).” GAAS requires CPAs to obtain reasonable assurance that
financial statements contain no material misstatements, but does not require them toidentify the underlying causes of material misstatements.
In Japan, the understanding of corporate fraud is different in terms of legal andacademic classifications, company practices, and CPA audit. This gap in
understanding signals an “expectation gap of CPA audit” in Japan.
To fill the gap, there should be a method to revise GAAS that requires CPA audit
to accurately reflect the cause of material misstatements. In practice, users offinancial statements need useful information without material misstatements, and do
not need to know the cause of misstatements. This is because, even if the cause of
the material misstatements is “error,” “fraud,” or “inappropriate accounting,” there is
no impact on the presentation of the financial statements. In some cases, there iseven a risk that a revision to the GAAS will lead to excessive audit and change thepurpose of CPA audit.

19

Fraud of Public Sector: Current Situation and Challenges based on
Annual Audit Reports of BOA
Nobuo Azuma
Board of Audit of Japan
According to INTOSAI’s ISSAI 1003, fraud is defined as an intentional act by
one or more individuals among management, those charged with governance,
employees, or third parties, involving the use of deception to obtain an unjust or
illegal advantage. Auditors of public sector are required to take up fraud even when
it might not cause material misstatement in financial statements.
I have selected audit cases recognized as fraud from the past ten years’ annual
audit reports of the Board of Audit of Japan (BOA). As a result, there are audit cases
whose volume is 1,183 cases and value is 92,797 million yen. To classify these audit
cases by entity of fraud, the top in terms of volume is beneficiaries of subsidies of
the Sates government that share 563 cases (47.6%), and the top in terms of value iscontractors of the State government that share 45,418 million yen (48.9%). To
analyze these audit cases by trend, peak in terms of volume is 241 cases in 2009 andpeak in terms of value is 46,130 million yen in 2012, and both of them aredecreasing afterward.
Though fraud of public sector is now the lowest level both in terms of volume andvalue, we have to eliminate fraud risk factors because we can’t affirm that this trend
will continue for a while. For example, we could set unified internal control
standards of the State government based on COSO’s framework and provide
provisions corresponded to 5 components of internal control abided by all officials
in accounting regulations. Also, we could set unified internal auditing standards of
the State government reflected concept of COSO’s framework and provide
provisions to oblige the ministries to set up internal auditing institution independent
to other sections in accounting regulations.
BOA has not only detected fraud but also demanded practical prevention
measures of recurrence of fraud from the ministries since 2005 under the policy that
BOA should concentrate on audit of basic accounting procedures. On the other hand,scholars of accounting have tended to take up fraud from the context of audit offinancial statements, internal control and internal auditing of private sector, and havenot payed attention to fraud of public sector. As a result, it is no exaggeration to saythat there is no systematic academic research on fraud of public sector. Scholars are
expected to contribute to prevention of recurrence of fraud of public sector from the
aspect of accounting theory because there are still fraud risk factors in public sector
owing to changes of economic environment.

20

Session 4: The Role of Not-for-Profit Accounting in Medical
WelfareDisclosure of Financial Accounting Information of Medical Welfare
Businesses-Possibility of Utilizing Common FrameworkToshie Ishizu
Meiji University
The expansion of medical welfare businesses is one of the major causes of thecurrent governmental financial crunch in Japan, where the publicly funded national
health insurance system covering all citizens faces the problem of an aging
population. The appropriate disclosure of financial information is important formutual understanding between service providers and those paying tax and social
insurance premiums.
Recently, a conflict arose between society and the providers of social nursing
homes regarding to the latter’s excessive accumulation of internal reserves.
Following this incident, the government introduced a new system, making it
mandatory for them to utilize certain portions of their accumulated reserves. Using
this system as a case study, this paper proposes separating their internal reserves into
two categories: (1)a portion that is certain to be spent on social welfare activities and(2) a portion that is simply accumulated, without any specific purpose.
First, we compare the accounting conceptual frameworks (common frameworks)
in the SFAC No.4 by the U.S. Financial Accounting Standards Board (FASB) and in
the Research Report No.25 by the Japanese Institute of Certified Public Accountants(JICPA). We mention the following two aspects: one is that, in Japan, those paying
taxes and social insurance premiums are key information users. The other is thatsocial welfare businesses receive beneficial tax treatment. Therefore, a full
explanation of stewardship should be an important function of financial information
disclosure. We go on to indicate that, if mandatorily collected taxes and social
insurance premiums are kept as internal reserves, the reason for their non-utilizationand the manner in which they will be used should be clearly explained. Further, we
put forth the argument that for this to be achieved, internal reserves should be
separated into the abovementioned two categories and disclosure as such. As a
specific means of separating disclosures, we propose that the “Net assets” should be
divided into “restricted assets” and “unrestricted assets,” as indicated in both twoconceptual frameworks. We also propose that the portion mentioned in (1) above
should be entered as restricted assets.

21

Notably, Japanese not-for-profit organizations have different accounting
standards for different types of organizations. If these ideas related to the common
frameworks are introduced gradually, to the extent that their usefulness isrecognized, we believe that this would increase transparency and comparability forthe benefit of information users.

22

Current Development of Managerial Accounting in Health andWelfare Sector under Changing Business Environment
Ko Arai
Hitotsubashi University
This study reveals, 1) how changing business environment demands utilization ofmanagerial accounting in health and welfare sector, 2) to what extend managerial
accounting are actually used, and 3) what kinds of problems are seen to use it
effectively. In addition, based on these backgrounds and current utilization practices
in healthcare organizations, this study shows topics, which should be tackled inmanagerial accounting research.
Fundamental change of business environment is deterioration of nation’s fiscal
condition. This problem stems from decreasing tax revenues due to long-term
stagnation in Japanese economy and increasing medical expenses due to super-agedsociety and expensive medical technologies. This nation’s financial disaster iscommon background of all following environmental changes, which directly requireapplication of managerial accounting in health and welfare sector; i) continuously
restrained medical-fees, ii) development of Diagnosis Procedure Combinations andnew reimbursement system based on DPC, iii) continuous innovation in medical
technology, iv) increasing people’s interests in medical qualities under fiscal crisis,v) requirement for strategic management regarding choice of capabilities eachhealthcare organization have by themselves and cooperation with otherorganizations having different capabilities, vi) transition of power from top
management to middle managers responsible for each business line due todiversification of business lines in a medical corporation.
Profitability control by responsibility centers is undertaken in many healthcareorganizations, especially in private one. However, some problems are seen, such aslack of hospital director leadership and inadequate capability of a management staff
regarding managerial accounting.
Finally, this study shows following research topics related to managerial
accounting in healthcare organizations; i) how to encourage further utilization ofmanagerial accounting, ii) how to improve effectiveness of currently usedmanagerial accounting, iii) assessment of effectiveness on financial andnon-financial outcomes, iv) how to educate effectively top management & middle
managers with limited times about managerial accounting, who are medical staff in
most cases and have never been educated even about basics of businessadministrations.

23

Relationships between Accounting for Medical and Welfare
Services and Public Sector Accounting: From a Perspective ofMacro Policy
Kiyoshi Yamamoto
The University of TokyoJapanese society is now challenged by decreasing population and fiscal stress. A
major concern is to harmonize economic growth and assured life for the people.
Both service fields of nursing care and welfare for the aged have to be appropriately
planned and implemented efficiently and effectively. Japan’s welfare services have a
distinguished character from other developed nations in dividing the finance throughpublic money into the provision by the private sector, most of the non-profit sector.
It means that non-profit sector in Japan has played a greater role in social life andpublic finance. Therefore to explore the accounting role in measuring theperformance then to make recommendation for the improving is quite important.
From this perspective, this reporting examines the structures and its issues for
non-profit sector accounting focusing on medical services, which is the largest partof social welfare expenditures in the general budget. Medical services provided by
medical institutions are basically operated through the public health insurance
system which is financed by the insurers, the government and personal payments.
Medical institutions like non-profit hospitals and public hospitals including generalpractitioners are operated in a quasi-market of public health service on a legal price.
Consequently insurers other than medical institutions and the government have to be
included as an accounting entity for the target of controlling medical services andpublic finance. Insurers are the interface between the medical institutions, thegovernment and the general public as a person covered by the public healthinsurance. Of course accounting harmonization among the medical institutions, thegovernment and insurers shall be needed in addition to public and private medical
institutions.

24

2017 Annual Conference of JAA
Special Committee
Comprehensive Study on the Design of Accounting System(Interim Report)
Chair: Shinya Saito
Yokohama National University
Accounting information is the reflection of economic events of entities. However,it could affect a company's behavior. Therefore, in order to design accounting
systems, such as accounting regulation and accounting standards, it is necessary to
fully take the affections side into consideration. However, there is not sufficientaccumulation of the research on the affects, at present. Moreover, since it is apremise that social systems are accepted in society, stability and fixed durability arecalled for. Therefore, in order to design accounting systems, it is necessary to fully
take the basis of theoretical consistency into consideration.
The purpose of this research is to consider comprehensively the design of theaccounting systems. Then, this research will specify the factors to be considered at
designing the accounting systems, and aim at contributing to the review after theenforcement.
Thin interim report has six parts. In the first part, after the explanation of themeaning to set up the theme, the basic subjects and the factors which draw thelegitimacy of accounting standards are investigated from the viewpoint of a social
consent. In Japan, there are the problems, such as unbalance of participation andcomplication of procedure, while the transparency of a deliberation process is high.
In second part, from the viewpoint of accounting regulation, some problems arepointed out.; the improve of information by segment and quarterly report disclosure
by Financial Instruments and Exchange Law, necessity of processing a subsidiary
and associated company stocks by equity method in individual financial statements,
and the influence of the distribution regulation change, etc. In third part, theaccounting standards are investigated from the viewpoint of the normative
consistency. The standards which are concretely considered are revenue recognition,
financial instruments, asset retirement obligation, business combination andinsurance products. In the fourth part, the verification results of empirical researches
are mentioned. In Japan, there are the tendency which net deferred tax asset isincreasing, a significant relation between a deferred income tax and stock prices.
And there is loss evasive behavior in relation to the expression of comprehensive

25

income. In fifth part, using a transaction cost and network externality, thepreliminary examination about an accounting-standards selection problem in Japanis shown. Finally, in sixth part, the preliminary consideration about the bothpost-implementation review of ASBJ and IASB are shown.

Chair:
Shinya Saito (Yokohama National University)
Members:
Kazuki Ikushima (Iwate Prefectural University)
Takefumi Ueno (University of Shizuoka)
Yasuhiro Ohta (Keio University)
Satoshi Ohtaka (Yokohama National University)
Shigeo Ohtsuka (Chiba University)
Katsuyuki Kanda (Okayama University)
Akihisa Kimura (Yokohama National University)
Kouji Kurata (Rikkyo University)
Kenji Kometani (Tohoku University)
Nobuhiko Sato (Kumamoto Gakuen University)
Masatsugu Sanada (Shujitsu University)
Tomonari Shinoda (Hokkaido University)
Kazumi Suzuki (Kobe University)
Tomohiro Suzuki (Asia University)
Takefumi Tamura (Chuo University)
Akihiro Noguchi (Nagoya University)
Miho Furuta (Konan University)
Masao Yanaga (Tsukuba University)
Yasuhiro Yamada (Rikkyo University)
Yan Lee (Nanzan University)

26

Special Committee
Comprehensive Research on Strategic Management andManagement Accounting(Final Report)
Chair: Masanobu Kosuga
Kwansei Gakuin University
This committee 2015-2017 seeks to investigate the actual situation of the strategic
management practices in Japanese firms from a viewpoint of the accounting
function in order to enhance our understandings on them. The research includes
quotes from CEO, CFO, and other professionals working in business about theirexperience in the strategic management processes within Japanese enterprises. The
purpose of the final report is to elucidate the following issues:
1. The contents, process, and context of the strategic management in Japanesefirms.
2. The extent to which management accounting system and/or management
accounting information are utilized to support strategic decision making andstrategic management process in Japanese firms.
3. The management accounting concepts, tools, and systems that are used by theJapanese firms in their strategic context.
The final report consists of twelve chapters. They are as follows:
Chapter 1: Management accounting for strategic management in Japan
Chapter 2: Theoretical framework of strategic management and accounting
Chapter 3: Creating values based on stakeholders approach and strategic
management
Chapter 4: Midterm business planning and management accounting
Chapter 5: Processes of midterm business planning
Chapter 6: Capital budgeting and strategic management
Chapter 7: R&D and several strategies for developing new products
Chapter 8: Strategic management of advertising costs
Chapter 9: Brand management and management accounting
Chapter 10: Globalization of Japanese business and management control systems
for foreign subsidiary companies
Chapter 11: Global strategy and performance evaluation system
Chapter 12: Strategic management and decision making practices on IT
investment

27

Japanese firms as the subjects of our research were Kawasaki Heavy Industries,
Ltd., OMRON Co., Nissan Motor Co., Shionogi & Co, Ltd., NTT Communications,Sekisui House, Ltd., NSK, Ltd., NEC Co., JFE Steel Co., Ajinomoto Co. Ltd.,
Mitsubishi Chemical Holdings Co., Mitsubishi Tanabe Pharma Co., Daiichi Sankyo
Co. Ltd., Hitachi, Ltd., Oki Electric Industry Co. Ltd., Suzuki Motor Co., Honda
Motor Co. Ltd., Toyota Motor Co. and so on.
In our conclusions, it has been suggested that Japanese management accountants
should take more proactive roles in the strategic management process embodied as a
midterm business planning process. In many Japanese companies, their midterm
business plans are generally tied up with not only the short-term profit planning andbudgeting systems, but also their financial disclosure on their performance
forecasting. One of the objectives of this research was to identify the extent to which
this has happened in Japanese firms.

Chair:
Masanobu Kosuga (Kwansei Gakuin University)
Members:
Takashi Arae (Nihon University)
Akihiko Uchiyama (Chiba University)
Hiroto Kataoka (Meiji University)
Hiroyuki Nakamura (Yokohama National University)
Shogo Kimura (Nagoya University)
Tomoaki Sonoda (Keio University)
Asako Kimura (Kansai University)
Masahiko Sakai (Otaru University of Commerce)
Masaru Nakagawa (Doshisha University)
Yoko Asakura (Kansai Gaidai University)
Shuji Mizoguchi (Yokohama National University)28

2017 Annual Conference of JAA
Study Group
Many-Sided and Synthetic Research of the Accounting in China:
Based on the Historical and Comparison Institutional Analysis(Interim Report)
Chair: Ichiro Mizuno
Kansai University
Accounting reform of the present-day China (the People’s Republic of China)
began from the “accounting standards for business enterprises” and the “generalrules of business finance” in July, 1993. Accounting reform in China brought about a
big change which is called to “the big storm of accounting.” Internationalization of
accounting system in China was also advanced quickly. Also in accounting domains(such as financial accounting, managerial accounting, audit, and internal controletc.), the international accountancy practice and the result of accounting research
have been taken in.
In this research, we catch the accounting in China from many sides, being basedon the methodology of comparative system analysis, and by historical and clarifying
synthetically about the feature of the present-day accounting in China.
The 1st subject is tackling historical research of the accounting theory, accounting
system, accounting practice, and accounting cultures which have formed thepresent-day accounting in China. When we understand the accounting system ofChina, it is important to research modernization of China from end-stage of Qing era,development of a national corporation, and generation of an accounting profession,
to consider the historical path dependency and institutional complementarity of
China with a period of the practice of the old socialism accounting system after the
revolution in 1949. As a tentative report for this subject, we made a presentation of“History and development of the enterprise accounting in China,” “Western
double-entry-bookkeeping: Propagation to modern China,” and “Accounting inpresent-day China and the comparative system analysis.”
The 2nd subject is clarifying the status and feature of the present-day
accounting in China through the research of domains (such as institutional
accounting, cost accounting ,managerial accounting, internal control, audit,
integrated report, environmental accounting, small-and-medium-size-firms
accounting , etc.) which each member has so far tackled. As a tentative report forthis subject, we made a presentation of “Consideration about the accounting
29

conceptual framework of China,” “Aspect and subject of an internal control system
in China,” and “Introduction of the amoeba management in China.”
The 3rd subject is tackling accounting research situation (a main researchmagazine and its appraisement) of China, the status and feature of accounting
education (main texts and contents of the specialist graduate schools, such as a
graduate school and MPAcc, a syllabus, a curriculum, etc.) of China. Additionally, it
is also important to clarify the certified public accountant system (examination
system, auditing profession, and continuous education of accountant, etc.) of China,
the cultivation system of the accountant of a business concern (the beginners' class,the middle class, high-class accountant). As a tentative report for this subject, wemade a presentation of “Accounting education and researcher training in China.”
Moreover, although it was not able to report at the academic conference, we
officially published as a full paper of a tentative report “Status and subject of the
Taiwan accounting system.” This paper is results which explored the status andfeature from historical development of the accounting system of Taiwan where
socioeconomic systems differ, though it is the same Chinese-speaking countries.

Chair:
Ichiro Mizuno (Kansai University)
Members:
Zhiqiang Bu (Osaka City University)
Ling Feng (Tokyo University of Science)
Yan Li (Takushoku University)
Qingyun Lin (Nagoya University of Foreign Studies)
Shoji Oka (Kansai University)
Masakatsu Oshima (Asia University)
Lanlan Shao (Sapporo Gakuin University)
Meiling Sun (University of Marketing and Distribution Sciences)
Jing Tao (Okayama Shoka University)
Zhi Wang (Sophia University)
Yu Wang (Kwansei Gakuin University)
Wei Wei (Kyushu Sangyo University)
Yang Xu (Nagasaki University)
Xuebing Qiao (Takushoku University, part-time lecturer)
Bowei Zhong (Asia University, part-time lecturer)

30

Study GroupThe Impact of Integrated Reporting on Management Accounting(Final Report)
Chair: Yoshihiro Ito
Waseda University
In this research, while considering the viewpoint of management accounting, we
examined the multifaceted impact of integrated reporting on corporate accounting
beyond the boundaries of accounting domain, and the direction in which accounting
research should proceed in the future. The study group recognizes that integrated
reporting has the potential to prompt a major change in the social role of theaccounting system. Through this research, we would like to identify the trends inaccounting research over the next several decades. In the final report, we conducted
research on the following themes to achieve our research objectives.
1. The impact of integrated reporting on management accounting research andpractice
2. A survey of integrated reporting in Japan
3. Integrated reporting as a management strategy
4. The case study on the impact of integrated reporting on company practice
5. Voluntary disclosure of negative information in integrated reporting
6. Assurance in integrated reporting
Through the above research, we were able to partially clarify the issues involvedin the disclosure of integrated reports and mandatory integration reporting. At thestage of the final report, although we were able to achieve certain results, we mustsay that both studies are still in progress. In the final report, we were able to clarify
the following points.
First, we conducted a questionnaire survey to clarify the actual situation of
integrated report in Japan. The survey was conducted for 1408 companies listed in“CSR Company Overview 2017,” and the final number of responses was 140
companies (Ratio of valid response rate: 9.9%). Among them, 44 companies (about
31.4%) disclosed integrated report. Through this survey, we could clarify that theimplementation of the integrated report has positive influences such as enabling
stakeholders to understand strategy and increasing opportunities for inter-departmentcommunication.

31

Second, in addition to the questionnaire survey, we examined the possibility thatthe integrated report will transform management control systems through case study
based on interviews. It became clear that the implementation of the integrated report
not only helps stakeholders outside the organization to understand the strategy, butalso has the effect of promoting the penetration and understanding of the strategy
inside the organization.
We regard this theme as a top priority research topic. Furthermore, we believe it
is impossible to systematically integrate non-financial and financial information
without a management accounting approach. In this regard, we have proposed theuse of CSR scorecard and sustainability scorecards based on the balanced scorecard
approach, and have been searching for a concrete and practical framework. In the
future, we intend to further examine the theme of integrated reporting for robust
development.
The effect of integrated reporting on the organization’s management control ishardly known. To clarify this point, we will conduct research continuously using
both quantitative research based on questionnaire survey data and qualitative
research such as a case study. Furthermore, we will empirically analyze the stock
market reaction to first disclosed companies and the stock price relevance of thequality of the published integrated report.
Through these studies, we will determine whether integrated reporting is an
important theme that has the potential to transform the role of the accounting systemor just a discussion attributable to a transient boom. Companies that implement
integrated reports have increased rapidly from around 2015. Therefore, we willcontinue to investigate in the future to clarify how the integrated report affects
management accounting and organizational management.

Chair:
Yoshihiro Ito (Waseda University)
Members:
Hiroshi Obata (Hitotsubashi University)
Akira Omori (Yokohama National University)
Tomoki Oshika (Waseda University)
Haruo Hara (Sapporo Gakuin University)
Takehiro Metoki (Musashi University)
Aki Yamauchi (Waseda University)
Koji Yamamoto (Osaka Gakuin University)
Eri Yokota (Keio University)

32

Study Group
Expansion of Disclosed Information and the Diversification of Audit
Framework(Final Report)
Chair: Yoshinao Matsumoto
Kansai University
Research purpose:
The 2014 Revised Audit Standard by the Business Accounting Council andpractice guidelines by the Japanese Institute of Certified Public Accountants
introduced the framework of multiple audit opinions and various audit subjects. In
this research, we consider an influence of the revised Standard’s purpose andcontents on an audit theory and practice in the light of international and time series
aspects. Besides, based on such revision, we study what kind of future expansion of
disclosed information by companies. We finally present the institutional possibilityof the reliable disclosure system that there should be in future our country.
Research summary (final report):
The revised Audit Standard acknowledged an assurance of the reliability by audit
services on a single financial statement and a specific item of financial statement inaddition to a complete set of financial statements. Prior to Japanese Audit Standard
revision, the International Audit and Assurance Standards Board (IAASB)
introduced the International Standard on Auditing (ISA) 800 “Special
Considerations – Audits of Financial Statements Prepared in Accordance with
Special Purpose Frameworks” and 805 “Special Considerations – Audits of Single
Financial Statements and Specific Elements, Accounts or Items of a Financial
Statement” since the accounting year beginning of December 15, 2009. Thesestandards approved the diversification of audit subjects and the multiple applicationof the audit opinion framework in the foreign countries. Until such standards, anaudit was conducted for the complete set of financial statements and auditors
expressed a conclusion about the fairness.
We firstly examined how audit practices in Japan address such revised audit
standards based on the actual survey. Secondly, we verified the economic effect ofvoluntary audit by empirical research using archival data.
As the accrual survey with questionnaire, which was assisted by the JapaneseInstitute of CPAs (JICPA), we acquired the answers which include (1) nature of33

audited/ attested financial information, (2) accounting standards, (3) contents ofaudit/ attestation contract, (4) conclusion, (5) distribution restriction of report, (6)characteristics of client, and (7) particular attention in practice. We could extract andanalyze the real characteristics of audit/ attestation practice on financial informationin Japan on the basis of this survey.
In the empirical analysis, we conducted extensive surveys of prior research on
how motivated clients purchase voluntary audit or attestation services. Additionally,
we compared the economic effects of voluntary review service as a market
self-regulation for the listed companies of the Tokyo Stock Exchange’s Mothers withof mandatory review service introduced by the 2006 Financial Instruments andExchange Act. As a result, we proved the positive economic effect of voluntary
review services.
Our final report including the results of the actual survey and the empiricalanalysis suggests that any assurance on the reliability of financial information isessential for the market by audit or attestation services.

Chair:
Yoshinao Matsumoto (Kansai University)
Members:
Nobuhiro Asano (Osaka City University),
Sugako Ijima (Kurume University)
Yoshiaki Ozawa (St. Andrew’s University),
Naoki Kasai (Shiga University)
Akinobu Shuto (University of Tokyo),
Takatoshi Hayashi (Kwansei Gakuin University)
Hidenori Horiko (Kwansei Gakuin University),
Yoshihiro Machida (Aoyama Gakuin University)
Tomomi Takada (Kobe University)34

2017 Annual Conference of JAA
International Session
A Construct Validation Study on
Environmental Management Control System: An International
Perspective
Katsuhiko Kokubu, Kobe University
Thomas Guenther, Technische Universität Dresden
Qi Wu, Kobe University
Kimitaka Nishitani, Kobe University
Edel Guenther, Technische Universität Dresden
Jan Endrikat, Technische Universität DresdenCareer Concerns,
Financial Reporting Quality, and Efficiencies
Suil Pae, Sungyunkwan University
Firms’ Use of Social Media and Market Reactions to Earnings
Announcements-Evidence from Twitter
Ju-Chun Yen, National Central University
Shu-Hsing Li, National Taiwan University
Kuo-Tay Chen, National Taiwan University
The Continuing Audit Period, Client Size, and Audit Quality
Turning Point
Yeonhee Park, Kongju National University
Inman Song, Sungkyunkwan University & SUNY Korea
Wan Suk Ko, Hankuk University of Foreign Studies

Voluntary IFRS adoption and accounting quality: evidence from
Japan
Junjian Gu, Nagoya University

Auditor Impression Management: Evidence from Governmental
Audit Proposals
Yu-Tzu Chang, National Chengchi University
Dan Stone, University of Kentucky

35

2017 Annual Conference of JAA
Doctoral Colloquium Session

The real effects of accounting earnings attributes: Evidence fromJapan
Ryosuke Fujitani, Hitotsubashi University

How Does the Japanese Audit Market Transition from Big 4 to Big 3
Period Affect Audit Pricing Competitiveness?
Frendy, Nagoya University

36

2017 Annual Conference of JAA
Regional Reports

Hokkaido Region
Hiroshi Yoshimi
Hokkaido University
The regional meetings were held in 2017 as follows.
1. The 91st Regional Meeting at Kushiro Public University of Economics on 27 May,2017.
(1) “Actual Conditions Survey of the Management Accounting Practice in the
Small and Medium-sized Enterprises in the Tomakomai Area: about the
non-manufacturingindustry,”

Kazuhiro

Kawashima,

Tomakomai

Komazawa University.
(2) “Usefulness and Complexity of Financial Reporting,” Yuji Yoneyama,
Hokkaido University.
(3) “The General Features in Japanese Companies Applying IFRS Arbitrarily,”
Koichiro Matsumoto, Hokusei Gakuen University.
2. The 92nd Regional Meeting at Sapporo Citizens Hall on 2 December 2017.
(1) “Dealings in Subsidiary Companies and Accounting Fraud,” Hiroshi Owada,
Houjinkai.
(2) “A Study on IFRS for SMEs and Accounting Standards for Small-and
Medium-Sized Entities,” Yoshiyuki Nakanishi, Hokkai School of Commerce.
(3) “The Double Account System of the New York, Ontario and Western
Railway Company,” Mitsunori Kasukabe, Hokkaido University.
(4) “A Proposal that an Exemption of Taxpayer and Tax Liability in theConsumption Tax Law,” Shigeyuki Nakashima, Professor Emeritus, Hokkai
School of Commerce.

37

Tohoku Region
Shuhei Kinugawa
Fukushima University
The regional meetings were held as follows;
1. The 92h Meeting, July 29, 2017 at Hirosaki University(1) “Re-examination of Quality Cost in 1960s,” Masatoshi Kosugi, Hirosaki
University.
Discussant: Keikichi Kato, Hirosaki University.
(2) “Economic Situation of SMEs in the Tohoku Region after the Great East
Japan Earthquake: Based on the Analysis of the Data of Questionnaire Survey
2016 and the Previous Ones,” Tomohiro Kaneko, Toyo University.
Discussant: Kazuki Ikushima, Iwate Prefectural University.
(3) “Characteristics of Board of Directors and Conservative Accounting Report,”
Yoshitaka Ohashi, Aizu University.
Discussant: Shuhei Kinugawa, Fukushima University.
(4) “Book-keeping and Accounting in the Project-Based Learning associated with
the Regional Firms,” Shuko Naito, Hirosaki University.
Discussant: Masateru Narikawa, Tohoku Institute of Technology.
2. The 93th Meeting, March 25, 2018 at Fukushima Gakuin University(1) “The Relationship Between Internal Control Quality and Audit Pricing inJapan,” Gaku Ueno, Tohoku University.
(2) “Revenue Recognition in Agricultural Activity Accounting: A Look at Natural
Farming,” Shuko Naito, Hirosaki University.
(3) “A study of acquisition cost and net worth calculation in Asset Retirement
Obligations,” Kazuki Ikushima, Iwate Prefectural University.

38

Kanto Region
Koji Kurata
Rikkyo University

The 65th Kanto regional meeting was held at Rikkyo University, Ikebukuro
campus on November 11, 2017. The main theme of the meeting was “Extensions inAccounting Research.”
The program of the meeting was as follows.
Chairperson: Manabu Sakaue (Hosei University)
Panel Discussion:
1. Manabu Sakaue (Hosei University)“Chairperson’s Synopsis: Extensions in Accounting Research.”
2. Makoto Nakano (Hitotsubashi University)“Extension of Accounting Research into Macro Economy.”
3. Masaki Yoneyama (University of Tokyo)“Extension of Field in Research Focused on Accounting Standards.”
4. Noriyuki Konishi (Aoyama Gakuin University)“Extension of Accounting Research into KPI Disclosures.”39

Chubu Region
Yoshiteru Minagawa
Nagoya Gakuin University
The regional meetings were held as follows;
1. The 139th Regional Meeting at Nagoya Bunri University on May 13, 2017.
(1) “The Old Style Original Bookkeeping of China in Pre-Modern,” Takaharu
Tanaka, Mie Prefectural School.
(2) ”A Discussion on Effective Cost Management in Airline Business,” Qingyun Lin,
Nagoya University of Foreign Studies.
(3) “Another Form of Income Statement implied by Sganzini (1908),” Tsukasa
Nishidate, Aichi Gakuin University.
(4) “The Current Issues on Financial Instruments Accounting From View Point of
Risk Management and Financial Regulations: Based on Banking Industry,”
Yasuhide Yoshida, Chukyo University.
2. The 140th Reginal Meeting at Nagoya Gakuin University at December 16,
2017.
(1) “Revisit the Asset/Liability View and the Revenue/Expense View: The
Relationship of Its Definitions and Measurement Attributes,” Hiroshi Shuto,
Graduate School of Economics, Nagoya University.
Commentator: Yukinori Ikeda, Aichi University.
(2) “The Anticipated Practical Agendas of the New Revenue Recognition Criteria to
Be Implemented in Japan: From the Financial Statements Preparer’s View,”
Ikuhiro Sato, Yamaha Motor Co., Ltd.
Commentator: Tatsuhiko Tashiro, Meijo University.
(3) “Case Study of Local Public Sector Accounting Reforms in France,” Nanae Soba,
Nagoya Gakuin University.
(4) “Usefulness of Segmental Financial Statements: Analysis of Aichi prefecture’sStatements from 2013 to 2015,” Risa Yoshimoto, Aichi University.
(5) “Financial Analysis on Private Universities in Aichi, Gifu, and Mie Prefectures,”
Morihiko Umeda, Chukyo University.
(6) “Public Sector Accounting of the Municipalities in Three Tokai Prefectures,”
Hirofumi Nishihara, Deloitte Touche Tohmatsu LLC.

40

Kansai Region
Toru Kotani
Osaka University of Economics
The 67th Kansai regional Meeting was held at Osaka University of Economics on
16 December 2017. The program is as follow.
Conference Presentation in the afternoon
Moderator: Naohiro Urasaki, Kindai University(1) “The legitimacy of accounting standard setting body revisited: Froman organizational institutionalism perspective,”
Masatsugu Sanada, Shujitsu University（2）“Comparative Institutional Analysis of Changes from Cost Accounting to Fair
Value Accounting,”
Kohei Miyamoto, Kobe Gakuin University
Plenary Session“Development status of accounting standards for revenue recognition,”
Atsushi Kogasaka, ASBJ
Panel Discussion:
Chair: Toru Kotani, Osaka University of Economics（1）“Issues and Prospects on the ASBJ’s Exposure Draft of Accounting Standard for
Revenue Recognition － From the View Point of Preparers －”,Hiroshi Yamada, Osaka University of Economics（2）“Issues and Prospects on the ASBJ’s Exposure Draft of Accounting Standard for
Revenue Recognition － From the View Point of Auditors －”,Yoshiaki Ozawa, St. Andrew's University（3）“Issues and Prospects on the ASBJ’s Exposure Draft of Accounting Standard for
Revenue Recognition － In the Context of Corporate Taxation －”,Kazumi Suzuki, Kobe University

41

Kyushu Region
Keiichi Oishi
Kyushu University
The Japanese Accounting Association (JAA) Kyushu regional conferences
are regularly held twice a year – in July and March. This academic year, thesummer conference was held at Kyushu University, and the early spring
conference was held at Okinawa Kokusai University.
1. The 100th meeting at Kyushu University, on 29th July, 2017.
(1) “Accounting for the Amount of Financial Liabilities due to the Changes in
Own Credit Risk,” Zhao Chen (Doctoral Course, Graduate School of
Economics, Kyushu University).
(2) “A study of Corporate Social Responsibility Strategic Control in France,”
Mika Kuroiwa (Doctoral Course, Graduate School of Economics, Kyushu
University).
(3) “What Determines the Shape of a Distribution of ROA?”, Manabu Kotani(Kumamoto Gakuen University).
(4) “A Case Study on Maintenance Process of Management Accounting,”
Kosuma Shinohara (Fukuoka University), Kazunori Fukushima (Chuo
University), and Hiroshi Adachi (Prefectural University of Hiroshima).
(5) “Tax Accounting and Tax Law Cases,” Hideo Suenaga (Kumamoto Gakuen
University).
2. The 101st meeting at Okinawa Kokusai University, on 23rd March, 2018.
(1) “An Industry-Academia-Government Collaboration System to Improve Cost
Accounting Skills for Local Industrial Park Personnel,” Kousuke Miyaji(University of Nagasaki).
(2) “The Position of Gains and Losses under the Conceptual Framework,” Shu
Inoue (Fukuoka University).
(3) “The Effect of Change in Auditing Standards concerning Going Concern
Issues: An Application of Difference-in-Differences Analysis,” Yoshiteru
Sakane (Kyushu Institute of Information Sciences).
(4) “The Policies of Accounting Standards Choice by European Companies,”
Tomomi Shiosaki (Kyushu University).

42