■ 国際会計研究学会 年報 2019 年度第 1・2 合併号

Ⅷ

Summary of Articles

A Review of Empirical Research on IFRS Adoption
Masaki Kusano
Kyoto University
This study discusses existing empiricalincentives. These results suggest that the

research on the adoption of International

benefits of adopting IFRS are joint effects ofFinancial Reporting Standards (IFRS). In

IFRS adoption itself, country-level institutions,particular, this study reviews the IFRS

and firm-level incentives. Most previous IFRS

literature on how IFRS adoption affects

studies analyze the (net) benefits of IFRS

financial reporting quality, capital markets,

adoption, and thus evidence on the costs ofand contracts. The earlier IFRS literature

adopting IFRS is limited. Nowadays, firms

did not explicitly investigate how country-level

downlist or delist to avoid the costs of IFRS

institutions and firm-level incentives influence

compliance and enforcement. Accordingly,

the economic consequences of IFRS adoption.

more research is required to examine the

However, more recent research reveals that

determinants and consequences of avoiding

the implications of adopting IFRS vary

IFRS adoption in order to enhance ourdepending on countries’ institutions and firms’

understanding of IFRS effects.

269

Research on “Judgments” in Accounting and
Auditing Issues
Noriyuki Tsunogaya
Nagoya University
Financial Statements are the results ofinfluences on financial reporting practicethree main factors, namely, “records”, “customs”,

remain local” (p.15). Even though IFRS haveand “judgments”. Nonetheless, we have notbeen adopted in many countries, unless IFRS

focused on the importance of “judgments” inis applied and interpreted consistently amongaccounting and auditing issue. During 1972

those countries, international comparability

and 2010, only 17 judgment-related papersof financial reporting practice will neverwere published in the top five journals

improve.

(Accounting,

Organizations and Society,As such, the objective of this study is toContemporary Accounting Research, Journal

review judgement-related literature publishedof Accounting & Economics, Journal ofin the top five journals from 1972 to 2010 as

Accounting Research, The Accounting Review).

well as from 2011 to 2018 by focusing on its

Ball (2006) suggests that “uniform standards

main topics, samples, methodologies, and［ e.g., International Financial Reporting

findings, in order to suggest the importanceStandards: IFRS］alone will produce uniformof “judgments” in accounting and auditing

financial reporting［practice］seems naive”

issues, and thus, to achieve international(p.17). This is because “[D]espite increased

comparability of financial reporting practice.

globalization, most political and economic

270

Comment on the Unification Theme of the 36th
Annual Conference
Jonghoon Kim
Senshu University
This article summarizes my comment on

regarding the goodwill accounting literature”.

the two report at the unification theme of the

In addition, I commented on the challanges of

36th annual conference. The first report thatIFRS research targeting Japanese companies

I comment on is conducted by Masaki

voluntarily adopted IFRS. These three issues

Kusano titled as “The overview and future

are: (1) ensuring internal validity of theresearch topics regarding the effect of IFRS

results, (2) ensuring external validity of the

adoption literature”, and the second report isresults, and (3) re-examining the preconditions

conducted by Toshitake Miyauchi titled asin previous overseas research.

“The overview and future research topics

271

Corporate Governance Reform and New Role ofFinancial Accounting and Reporting
Yusuke Nakajo
Yokohama City University
This paper focuses on “governance reform”

that are significantly higher than the GAAP

since setting of the Japanese Corporate

indicators have higher executive compensation

Governance Code, and I consider the change

than others. Through these analyses, I raiseof the role of financial accounting andquestions about the adequacy of adopting

reporting and its challenges through thisNon-GAAP

reform. In the context of corporate governancecompensation scheme while applying IFRS

reform, I point to extend financial accounting

to enhance the comparability of financial

and reporting to an information system that

information internationally. Also, if accounting

can confirm and verify the state of corporate

standards based on the information providing

governance, not only the role of information

function cause incompatibility with theproviding, which is currently the mainstream

governance support function, managementin the world. I also point out the penetration

may have incentives to produce Non-GAAPof Non-GAAP indicators into financial reporting

indicators, and finally their actions could

and corporate governance mechanisms. In

lead to weakness in the accounting system.

particular, I take the relationship between

Based on the above, I think it is time tothe executive compensation scheme andenvision

Non-GAAP indicators, then I find that thecorporate governance support functions.

companies reporting Non-GAAP indicators272

measuresaccounting

that

for

is

executive

usefulforGovernance Reform and Management Accounting
Akihiko Uchiyama
Chiba University
This study examines the framework of

converging toward “sophisticated shareholder

corporate governance from the viewpoint ofvalue

management accounting. The essential purpose

reporting can be cited as one mechanism forof corporate governance is considered to berealizing corporate value creation throughsustainable corporate value creation. Corporatesuch a corporate governance framework. On

value creation requires both economic value

the premise of the concepts of Corporate

creation

and

value

Governance Code and Japanese version ofcreation.

When

corporate

the stewardship code, “triple loop model” cangovernance from the viewpoint of management

be presented as a framework centering on

accounting, it can be regarded as a framework

integrated reporting. In addition, it is

to realize corporate value creation by thepossible to point out the problems ofcycle in which a corporate grasps “needs” ofgovernance and management accounting

stakeholders, realizes them through strategies,

brought about by group management which

reports the results to outside and inside, andhasgrasps “needs” of stakeholders throughenterprises.

social/organizational
consideringmodel”

becomeinternationally.

commonmainlyIntegrated

in

large

dialogue. Corporate governance appears to be

273

The governance reform and the role of accountingof public institutions～independent administrative agency as an example～
Kenji Izawa
Ernst & Young ShinNihon LLC
The independent administrative agencies

of administrative cost report was necessary.

were established in 2001, and the review of

The author believes that in the content ofoperations and organizations was carried out“Basic Guidelines on Financial Reporting byby the “Restructuring Program for Independent

Independent Administrative Agencies”, in

Administrative Agencies” in 2007, and theorder to further contribute to the governance“Basic Policy on Reform of Independent

reform of an independent administrative

Administrative Agencies” was issued in 2013,agency, it is necessary to (1) improve theand it was reconfirmed that restructuring of

disclosure of the future information (2)organizations should be minimized, and thedisclose the service performance report (3)autonomy in the organization and operation

audit. First, the author supports positively

and the incentive should be maximized todisclose non-finance information in the

maximize the function of the organization. In

business report, but it is necessary to expand

2017, “Basic guidelines on financial reporting

the future information. Next, the authorof independent administrative agencies” wassupports that the administrative cost isissued. In terms of accounting, “Further

clearly indicated as financial performance,

utilization of financial reporting” was an

but disclosure of the service performanceissue, and information on the outcome ofreport is required. In addition, as for auditing,independent administrative agencies andthe business report is to be audited only by

information showing the financial position

the “accounting part” at present, but it isand fiancé performance was required to benecessary to introduce a system to fully

presented, and in the former, the expansion

assureofnon-financial information.

scope

of

the

business

reportwasnecessary, and in the latter, the preparation

274

both

financialinformationandQuest for a Single Theory to Explain Managerial
Motivations for Sustainability Disclosures:
Legitimacy Theory, Stakeholder Theory orInstitutional Theory
Md Tapan Mahmud
Graduate School of Economics, Kyushu University
While explaining managers’ motivations

all the three theories are compared and eachfor publishing sustainability information,of those is (hypothetically) considered as theresearchers utilize diversified postulations‘single theory’, i.e., the pros and cons of eachreferring to three fundamental theories, suchtheory are analyzed, as if, each were theas legitimacy theory, stakeholder theory andchosen-one. It is found that institutional

institutional theory. Legitimacy theory claims

theory is the only one that can complementthat firms are selfish and seek for social

both the stakeholder and legitimacy theories

approval to operate through disclosures;and can explain managerial motivations forstakeholder theory holds that firms identify

sustainability disclosures, in most contexts.

‘powerful’

configure

However, even if institutional theory is chosendisclosures for them; institutional theory

as the ‘single-one’, in specific scenarios,

signifies that firms pursue ‘isomorphism’,stakeholder theory or legitimacy theory may

copy various aspects of society and industry

turn out to be better than institutional

field, and sustainability disclosure is one oftheory. Academics and researchers may draw

those aspects. This paper aims to point out aa conceptual framework—related to the said

single (suitable) theory from these three, totheories—from this study while understanding,ease up the said explanation of managerial

explaining and prescribing sustainability

motivations. This is a literature review-based

disclosures related issues.

stakeholders

andanalysis. Before sealing the ‘single theory’,
Keywords: Sustainability disclosures, Managerial motivations, Legitimacy theory, Stakeholder
theory, Institutional theory

275

The Convergence towards IFRS in China: A
process from historical cost accounting to fairvalue accounting
Xinyun Miao
Sugiyama Jogakuen University
Up until October 20, 2019, 157 jurisdictions

In this paper, we examine the process of

have required or permitted domestic listed

convergence with IFRS since 1979 in China

companies and/or financial institutions toby applying the accounting change framework

apply IFRS. The accounting systems aredeveloped by Harrison and McKinnon (1986).

deeply rooted in the unique socio-economic

We divide the process into four stages. For

environment of eachareeach stage, we investigate following issues:interdependent with surrounding systems.

why accounting system reforms occurred,

Given that divergences in the socio-economic

what reforms were implemented, and whatenvironments among countries still exist, it

reactions and conflicts occurred in the reforms.

has been criticized that IFRS is not necessarily

In addition, we clarify how surrounding

compatible with country-specific legal andsystems, including auditing, enforcement

regulatoryifsystem, corporate governance, and education

mandatory adoption of IFRS is required,for accounting professionals, have been

without the establishment of surrounding

developed to keep their compatibility withsystems, such as sound enforcement system

the implementation of IFRS.

systems.

country, andMoreover,even

and auditing, IFRS may not be consistently

An analysis of the case of China shows

implemented, and thus may not lead to high-how the variations in initial conditions for

quality financial reporting. As such, despite

applying IFRS limit the convergence towards

the globalization of accounting standards,

IFRS, and how accounting interacts withthe diversity of accounting systems (including

surrounding systems. The findings would be

accounting standards, accounting practices

conducive to better understanding of theand surrounding systems) may still exist

diversity in accounting systems.

among countries.

276

An Examination of Vietnamese Accounting as a
Social System
Norimasa Ito
Aichi Gakuin University
Considering the Vietnamese accounting

accounting system with accounting laws andsystem historically, it can be divided into thestandards for the invitation of foreign

following five stages. The first stage 1961-1970

capital.

“Chinese accounting model period”. The second

According to Parsons, a social system isstage 1970-1985 “Soviet accounting model

defined as a system that arises from theperiod”. The third stage 1986-1994 “Doi Moi

process of some interaction between two orcapitalist accounting model period”. The

more actors at the social-cultural level. Until

forth stage 1994-2001 “Vietnamese accounting

the third era, Vietnamese accounting was

system period”. The fifth stage 2001-Present

not a social system. With the third change, it“Accounting Law / Accounting Standard

became the stage of accounting as a social

period”.

system institutionally. However, Vietnamese

The era of change by Schlesinger’s cycle

awareness of accounting as a social system istheory can be summarized as follows. The

low. Vietnam has the power of society to

first change era (1960s): the change to achange itself, but has not yet had the power

communist accounting model by establishingand skills to build up its contents. In the

a communist state. The second change era

future, accounting as a social system is(around 1990): the change to capitalist

expected to mature. I can expect the fourth

accounting model by Doi Moi policy. The

era of change in Vietnamese accounting will

third change era (2000s): the change to ancome in the 2030s.

277

Trends in Global Accounting Standards andDisclosure Regulations
Toshitake Inoue
Financial Services Agency
The convergence of accounting standards

consistent application, (2) complexity inhas made progress across the world as afinancialresultinformation, and (4) technology.

of

the

growingrecognitionofreporting,(3)

non-financial

International Financial Reporting Standards

With regard to the communicating Japanese(IFRS) as a set of global accounting standards

opinions on IFRS, representatives from Japan

since 2001. After the financial crisis in 2008,

actively participate in various forums withinInternational Accounting Standards Board

the IFRS Foundation, such as the IFRS(IASB) and Financial Accounting Standards

Trustees and the IASB. In addition, Japan

Board (FASB) started discussion on the

Financialconvergence of accounting standards, including

Accounting Standards Board of Japan (ASBJ)

those for financial instruments. However,respectively participate in the Monitoring

they could not reach consensus and announced

Board and the Accounting Standards Advisory

postponement of the convergence as a result.

Forum (ASAF), and thus contribute to theJapan has taken measures to increase thedevelopment of IFRS and the activities of thenumber of voluntary adoptions of IFRS since

IFRS Foundation, including its Asia-Oceania

2013, while enhancing the quality of Japanese

Office in Tokyo.

Services

Agency(FSA)

andGenerally Accepted Accounting Standards

Some topics for future discussion on(GAAP) and communicating Japanese opinions

accounting standards are as follows: (1)to the IFRS community.

increasing the number of voluntary adoptions

As for the Japanese GAAP, the convergencesof IFRS in Japan, (2) strengthening opinionsof accounting standards for fair value

on IFRS, (3) enhancing the quality of Japanesemeasurement and revenue recognition with

GAAP, and (4) fostering human resources in

IFRS have been completed, and discussion is

the international accounting space. As forunderway on developing the standards fordisclosure regulations, it is important toleases and financial instruments. However,

respond to the growing need for non-financial

there are still differences in accounting

information. Furthermore, it is necessary to

standards for goodwill and recycling between

consider the effects of emerging technology,

the Japanese GAAP and IFRS.

such as artificial intelligence, when we

The IFRS foundation has recently expressedinterest in the following four areas: (1)278

consider future visions of accounting standards
and disclosure regulation.

Significance of Historical French Accounting
Study in Japan ; Code Savary in 1673 to Plan
Comptable in 1982
Masamichi Yoshioka
Tokyo University of Science
The first Commercial Decree of France

to consider UK’s “True and Faire View” rules

known as Code Savary was published by

as “Faithful View” on Plan Comptable in 1982.

Jacques Savary in 1673. Code Savary became

While adapting EC Directive, France applied

the first basic foundation for all present

aspects of Regularity, Sincerity and Prudence

accounting rules of France with depth ofto the accounting document for their domestic

following studying by professionals in theculture rules on a declaration.

past decades. We focus on the study of the(3) Departure Regulation

history of French accounting from 17th to 20th

The draft of EC Directive Article2, item(4),century and the significance and importance

had only Regularity for compliance functionof studying French accounting for Japaneseand Sincerity for note function. Importantly,

accounting.

however, the draft of EC Directive did not(1) The Basic Principals of Code Savary in
1673
Code Savary defines inventory of properties

include departure function. Current EC
Directive Article2, item(4) has departurefunction on “True and Faire View.” France

as most important accounting document on

applied the concept of Regularity andcommercial book. Inventory of properties

Sincerity into “True and Faire View” on EC

focuses on two purposes, process and impact

Directive item(4), in order for them to operateof outcome. The process of bookkeeping“True and Faire View” in replacement of

Inventory of properties is followed by in the“Faithful View.” Domestically France has spent

instruction of Code Savary in 1673. The impact

a lot of time on discussing about securingof outcome of Code Savary has 3 main purposes,

accounting order and adjusting accounting

a certainty of business accounting transaction,

rules with EC Directive.

fraud prevention for businessperson, andWhile advancing internalization, France

security of business trades. Those 3 purposes

adopted UK’s “True and Faire View” inneed to be strictly followed under Compliancereplacement of “Faithful View.” Without simply

of accounting rules.

adopting new view, France kept their own(2) Internationalization in Europe

concepts into the new idea in order to adapt

In 1973, United Kingdom became a memberof European Community (EC). After adapting

to a new rule. We believe this is the way forFrance to adopt Internalization.

EC Directive into French law, France concluded279

International Comparative Research regarding
the Forced Application of IFRS
Chairperson: Takayuki Nakano (Hosei University)
Members:
Takefumi Ueno (University of Shizuoka)
Noriaki Okamoto (Rikkyo University)
Clemence Garcia (Gakushuin University)
Jonghoon Kim (Senshu University)
Tomomi Shiosaki (Kyushu University)
Noriyuki Tsunogaya (Nagoya University)
Hirokazu Naruoka (Senshu University)
Satoru Nishiumi (Aichi Gakuin University)
Tomohiro Noguchi (Aichi Gakuin University)
Naofumi Higuchi (Certified Public Accountant)
Masataka Hiraga (Aichi Gakuin University)
Miao Xinyun (Sugiyama Jogakuen University)
Tatsumi Yamada (Chuo University)
Observers:
Su Yan (Graduate School of Commerce, Waseda University)
Research Collaborators: Hiroshi Shuto (Bunkyo University)

Our study group delivered our final report

implemented the mandatory application ofat the conference in the fiscal year 2019 (held

IFRS before the implementation and theon August 31, 2019 at Ichigaya Campus ofchanges that occurred after it mainly from a

Hosei University). Initially, our study groupqualitative viewpoint. Thirdly, we conducted

planned to merely conduct an internationalan empirical analysis of the Japanesecomparative study of the conditions andcompanies that apply IFRS voluntarily,

institutional measures of the major foreign

providing academic evidence for the voluntary

countries that embarked on the mandatory

application of IFRS in Japan.

application of IFRS. However, through two

As a nation’s choice of accounting standards

years of research, our outcomes exceeded by

is an important issue that could shake its

far the initial plan. The concrete researcheconomy, it is crucial that discussions areoutcomes are the following three.

based on evidence, not intuition. Hence, thisFirstly, we conducted a comprehensive

study’s main aim is not to discuss the ideal

survey of the empirical studies on mandatory

application of IFRS in a normative way, but

application of IFRS ((1) The quality andto portray the observed changes due to thecomparability of financial reporting, (2) Impact

application of IFRS as comprehensively andon the capital market, and (3) Stewardshipneutrally as possible from the standpoint ofresponsibility and contractual relationship).

researchers in an attempt to provide evidence

Secondly, we clarified the states of the countries

that could contribute to the discussions of(IASB, Germany, France, UK, Australia,

policymakers.

Canada, Malaysia, and South Korea) that280