■ 国際会計研究学会 年報 2017 年度第 1・2 合併号

Ⅶ

Summary of Articles

The new work plan of the IASB and issues for theaccounting profession in Japan
Yukio Ono
Accounting Standards Board of JapanThe objective of this article is to find out
issues for the accounting profession in Japanthe US GAAP with contributing to further
development of IFRS.

by making an overview of the work plan

In Japan, the Accounting Standards Board

issued by the International Accountingof Japan (ASBJ) is making efforts to makeStandards Board (IASB) as a feedback to its

the Japanese GAAP consistent with theagenda consultation in 2015, the status ofinternational accounting standards. The

IFRS endorsement in the EU and thenumber of voluntary adoptions of IFRS hasdevelopment of accounting standards in thebeen

US and Japan.

environment

remarkably
oftheincreasing

in

the

existence

of

four

The major activities of the IASB from 2017accounting standards including “Japan’s

through to 2021 will shift to supporting

Modified International Standards (JMIS):

implementing new IFRS standards andAccounting Standards Comprising IFRSs

researchand the ASBJ Modifications”.

projects

includingbettercommunication projects after completingmajor

accounting

standards

except

for

the

EU,

the

IFRS

endorsement

framework was strengthened in 2014 andendorsement

work

performed

the

by

has

for the accounting profession in Japan are
noted as follows:

conceptual framework in 2017.
In

In these circumstances, four major issues

beensteadily

EuropeanFinancial(a) Consistent application of IFRS globallyand domestically(b) Interpretation of IFRS by the IASB andIFRIC(c) Enhancement of comparability of IFRS ,Reporting Advisory Group (EFRAG).
In the US, convergence of the US GAAPUS GAAP and Japanese GAAP, andand IFRS has been completed and the(d) Undertaking of research activities andFinancial

AccountingStandards

Board(FASB) has been focusing on improvement oftimely development of IFRS standards
by the IASB.

221

The Roles and Problems of Accountancy
Professions in Japan Clarified from Relationshipbetween the Reliability of Financial Reporting andthe Effectiveness of Internal Control
Akiko Sugiyama
Toyo University
In Japan the situation regarding financial

the improvement of companies in internallyreporting of companies and internal controls

controlled

in the last decade is as follows: At first an

accounting irregularities and violations are

optional

application

forstill being reported.

Financial

ReportingStandards

International

financialaccounting

systems,(IFRS)

This paper focuses on the limit of internal

started from March, 2010, and then thecontrol of financial reporting, especially withnumber of companies that applied is156

paying attention to ‘unusual transactions’ of

including 17 companies that are in the

the Toshiba Corporation’s accounting matterprocess of applying as of October, 2017. As ofas a case study. Toshiba Corporation is one of

the end of June 2017, the current aggregate

the leading companies in the electronic device

value of (1) companies having applied IFRS,

industry, so this matter had received a lot of(2) companies deciding to apply IFRS, and (3)interest. Then, in this paper the roles andcompanies planning IFRS application has

problems of professional accountants fromaccounted for 30% of that of listed companies

now on is investigated through reviewing

in the Tokyo Stock Exchange (617 trillion

how they manage with the problems ofyen). By the addition of value of (4)transactions. The main points here are ascompanies examining IFRS application, thefollows: First, from the viewpoint of thetotal current aggregate value of them has

system of the Financial Statement Audit andaccounted for 52%.

the Internal Control Audit Reports, theOn the other hand, the Internal Control

relationshipbetweenthereliability

ofReport was introduced for listed companies

financial reporting and the effectiveness ofand store registration companies (including

the internal control is analyzed. Then, based

foreign companies) from 2008 through anon the present conditions of the companies’

application standard called ‘The Standards

accounting practices, the limit of the internal

and Practice Standards for Management

control is considered. Finally, the roles andAssessment and Audit concerning Internal

problems of accountancy professions in Japan

Control over Financial Reporting’. Despite

are presented.

222

Reduction of Complexity and IFRSYuji Yoneyama
Hokkaido University
Complicated business transactions andpaper, the present condition of activity

economic events make accounting standards

towards "reduction of complexity" in theand disclosure standards too detailed andUnited States and IASB is checked and somecomplicated contents. This is a factor which

pointsreduces the understandability of users of

examined when IFRS is adopted in Japanese

accounting information. In the United States,

disclosure system are considered.

ofargument

whichshouldbetosecurethequalityand

As "reduction of complexity" in accounting

transparency

which

bring

about

the

standards, both FASB and IASB adopted ausefulness

financialreporting,

some

in

order

of

principles-based

approach

and

have

projects for reducing "complexity" in a wide

addressed the problem of a measurement

range area have been advancing. The scope of

attribute. Moreover, the effectual disclosure

these projects is the whole financial reportingis explored for the usefulness of financial

system of the United States including

reporting. It will be required to examine

accounting

conformity with such IFRS based on thestandards

anddisclosure

standards.

disclosure policy which clarified the basic

The case in the United States has

objective of the financial reporting in Japan,

suggested some viewpoints required in orderin order to adopt IFRS in the disclosurethat the financial reporting system in asystem.

jurisdiction may function effectively. In this223

Issues surrounding Japan's Small and Medium
Accounting Standards
Masateru Narikawa
Tohoku Institute of Technology
mediumrejected. As a result, it was pointed out that

accounting standards in our country. Confirm

criteria other than qualitative problems may

facts from the actual survey as to which

exist in the selection between accounting

accounting standards are currently selected.

standards.

There

are

two

small

and

In this paper, in the point of selecting two

The second aspect is education on SME

accounting standards, we will formulate that

accounting

standards.

I

mentionedthe"Issues surrounding Japan's small andpossibility of gradual learning from simple tomedium-sized accounting standards" exist.

difficult. However, it was pointed out that

Therefore, we set two objectives. The first is

careful consideration is required for the scope

the quality aspect of accounting standards.

of education and the order of education when

We set the hypothesis that accounting

multiple accounting processes are tolerated

standards superior to qualitative will befor one item. Also, if diversification of

selected if qualitative superiority exists

accounting standards is observed, a variety ofaccording to accounting standards. However,accounting information is produced. At this

there was the fact that accounting standards

time, the reliability of accounting informationthat generally gained an evaluation of "beingis the key, pointed out that the point of

convenient" were selected in the practicalaccounting education shifts according to theworld. Therefore, the first hypothesis wasdegree of reliability.

224

Assurance of Financial Reporting by SMEs
Naofumi Higuchi
Certified Public Accountant
This paper aims to analyze the fairness anddeveloped countries outside of Japan.

reliability of financial reporting by unlisted

Next, common practices employed bycompanies and small and medium-sized

Professional Accountants (PAs) for SMEs

entities (hereinafter collectively referred to as

were investigated. In Japan, it was confirmed“SMEs”) if they adopt International Financial

that the PAs and audit firms provide

Reporting Standards (IFRS), from a practicalassurance

point of view.

companies and rarely to SMEs. In contrast,

First, the category of what is considered to

with

the

services

mainlysupport of

the

to

listedInternationalbe an SME (vs a listed company) in Japan

Federation of Accountants (IFAC), it was

was reviewed. Then the financial reporting

confirmed that the small and medium-sizedframework used by companies within theaccounting firms (i.e. outside of the large

category was also reviewed. Regarding theinternational accounting firms) provide wide

framework, in Japan, it was confirmed that

range of assurance services to SMEs invarious accounting standards and guidances

overseas.

(including IFRS and IFRS for SMEs) are

Finally,I

analyzedtherelationshippermitted under the Companies Act as

between Japanese SMEs and IFRS for SMEs

“business

generally(or IFRS), the revision of the Civil Code andaccepted as fair and appropriate”. It was also

the trend of the administrative agency’s

confirmed that the use of IFRS for SMEs has

policy, the practical issues in the Companies

not been widely adopted in practice and that

Act, assurance services provided by PAs andnational accounting standards are used intheir advantages/disadvantages.

accounting

practices

225

The Cohesiveness of Direct Cash Flow Statement
in IFRS X
Hideki Endo
Tokaigakuen University
The purpose of this paper is to clarify thethe statement of financial position should be

importance of cohesiveness to list the cash

indicated according to the elements, such as

flow and financial statements side by side,

assets, liabilities and equity etc. Thirdly, thebased on the core principles of Financial

selective application of direct and indirect

Statement

method, both should not be allowed.

Presentation

in

IFRS

X.

According to the IASB 'Agenda paper' (2011)

The importance of IFRS X in the financial

and the view of the advocates who valued thestatements has been evolved providing direct

cash flow, this study aims to describe the

cash flow information with the statement ofreport of business (operating) and financing

financialactivity, and the position of the direct cash

income. This makes the accountants agreed

flow statement in the financial statement.

and changed their practice accordingly.

positionandcomprehensive

The proposal of IFRS X divides the cash

Financial statements are basically the chartflow into the business and financing activity,

to indicate the corporate financial direction

andapplying

statement

of

this

for

the

in the future. It is the means for the

positionandstakeholders

consistency

financialtoobtainnecessarycomprehensive income. Furthermore, it will

corporate

be required to limit to the direct method only

financial statements must be effective, andfor the description of the operating activity

toand to annotate the adjustment of operating

information, and it must be comprehensive

cash flow out of operating income.

to all stakeholders. The direct cash flow

Meanwhile, the following problem would

financial

theindicatetheinformation.

necessarybutTheenoughstatement should be useful measure for thispurpose.

be pointed out.

IASB has been working to improve theFirstly, the finance leases should be
financeeffectiveness of information disclosure in

subcategory, and it is categorized to theDiscussion paper(2017)"Disclosure Initiative

financing–included

into

the

activity

operating
which

has

strongPrinciples

ofDisclosure".

For

this

relationship. That is the item concerning

improvement, it is necessary to focus a

operating finance subcategory should becohesive financial statement of an entity’sclassified into either of business or financing

activities (business and financing activity)

activity according to its character. Secondly,

and to provide for direct cash flow information.

226

IFRS adoption and the accrual anomaly
Toyotaka Nakagawa
Okayama University
The main purpose of this paper is toKlingler[2008]). In addition, this paper

investigate the accrual anomaly in Japanesereviews the studies for the effects of IFRS on

stock market. In the investigation, I use

stock market, the explanations for the

IFRS based, Japanese GAAP based, and US

occurrence of the accrual anomaly (e.g.,

GAAP based financial data prepared by

Richardson et al.[2010]; Chordia et al.[2014];

Japanese firms and compare with these

De George et al.[2016]).

empirical results. As we know, Sloan[1996]

This paper conducts the empirical analysis

first observes the accrual anomaly, andusing

Japanesefirms’

financial

data

numerous studies seek to obtain deep

prepared in accordance with IFRS, Japanese

understanding of the accrual anomaly. In the

GAAP, and US GAAP over the period of 2014

perspective of the international accounting

to 2016. I observe the significant negative

studies, we need to focus on the studies thatcoefficients on accrual variables for IFRS

indicate the international evidence for thefirms and Japanese GAAP firms. However,

accrual anomaly and the IAS/IFRS adoption

the empirical results differ among years of(e.g., Pincus et al.[2007]; Kaserer andanalysis.

227

The Relationship between Financial Indicators ofLocal Governments’ Financial Reports and Credit
Bond Ratings - An International Comparison Kentaro Haraguchi
Nagasaki Prefectural GovernmentThepurposetobecauseofthe

implementation

full-accrual

basedfinancial reports. Second, the variance offinancial reports in local governments on

the indicator of financial healthiness inthefinancial

Japan is much lower than that of U.S.

indicators of local governments’ financial

states. This means that the differences inreports and credit bond ratings (FR-BR

financial conditions among Japanese local

relationship) in Japan. To achieve thegovernments are relatively small. This fact

purpose, this paper compares the FR-BR

causes the weak FR-BR relationship in

relationship in Japanese local governments

Japan. Third, some previous studies point

and that in U.S. states. Japanese local

out that Japanese central government

governments have not yet completed the“implicitly” offers the debt guarantees forfull implementation of accrual basis, but

local

U.S. states completed the implementation

governmental

in 1999. Therefore U.S. states are good

credit bond ratings constant in Japan.

investigate

of

the

implementationofrelationship

this

paper

effectbetweenisbenchmarks for comparison with Japanese
local governments.
The results shows that the FR-BR

of

the

incompleteofoffull-accrual

governments.

This

guarantees”

the
based

“implicit
makes

the

The implementation of full-accrual based
financialreports

governments

inJapanese

local

cannoteliminate

these

relationship appears clearly in U.S. states,

factors immediately, but the results of thison the other hand, it does not appear inpaper suggest the possibility of theJapanese local governments. This paper

appearance of FR-BR relationship in the

points out three main reasons why the

future. This is the first-step to establish the

FR-BR relationship in Japan does not

approach to investigating the FR-BR

appear: lack of reliability or comparability,

relationship.

variance of financial healthiness, andFinancial reports of local governments

implicit government guarantees. First,

can make an contribution to the credit bondJapanese financial reports are not reliable

ratings,or comparable enough for rating agencies

information-infrastructure in bond markets.

228

and

can

be

an

important

The current state and problems of corporate
accounting in Myanmar:
The lingering effects of the socialist and the new
military regimes
Takayoshi Taniguchi
Certified Public Accountants
The objective of this study is to investigate
the current state and problems of corporate

to be effective.
This survey revealed that the awareness ofaccounting in Myanmar, also known ascompliance“Asia’s last frontier.” Myanmar is being

accounting literacy is low in companies intransformed

nationMyanmar, which has become a major

following its turbulent history of regime

obstacle to institutional reforms in thechanges from the colonial rule of the United

country. Its causes include the destruction of

Kingdom to the military regimes. Currently,

accounting education brought about by

it is aiming at economic development throughMyanmar’s political system. The neglect of

the introduction of foreign capital. It is also

higher accounting education under both theplanning to establish an infrastructure,

regimes and the repression of students andincluding the formation of capital markets,

faculties under the government’s “policy of

andnon-politicization”

intoachievingademocratic

fiscalsoundness

by

with

accounting

rules

following

and

the

democratization movement of 1988, which

establishing a tax system.
Research and education stagnated under

was mainly led by university students, has

the socialist and the new military regimes (itcreated a situation in which extremely few

is calledtouniversities teach accounting (only 3 out ofdistinguish it from the socialist military

169 universities). Therefore, no progress isregime). Thus, there are hardly any studies

being made in training advanced accounting

on accounting to use as reference. Further,

professionals. This is considered to be thethere is a significant absence of necessary

reason behind the serious lack of accounting

materials and data. Hence, conducting an

literacy in Myanmar.

thenew military regime

interview survey in Myanmar was considered229

Unfunded Pension Liabilities and Innovation:
Number of patent applications and number ofcited patents
Mikiharu Noma
Hitotsubashi University
The purpose of this research is to conduct
empirical

research

relationshipthat innovation is hindered by bankruptcy

between unfunded pension liabilities andprocedures that prioritize creditors, andinnovation. Specifically, we examine theinnovation becomes active under bankruptcy

effect of liabilities on retirement benefits onproceeding favorable to debtors. Japan's

the number of patent applications and thedefined benefit pension is strongly protected

number of cited patents.

and there is a possibility that it is hindering

Acharya

and

on

the

Acharya and Subramanian [2009] show

Suburamanian[2009]

innovation.

conduct international comparison and report

So, what is the impact of unfunded pensionthat the risk taking of Japanese companies isliabilities on the quality of innovation? In thisthe lowest. In Noma [2015], one logic withresearch, empirical analysis is performed

low risk taking of Japanese companies isassuming the least squares method, Poisson

unveiled from the viewpoint of unfunded

distribution, negative binomial distribution,pension liabilities as inside debts.

etc, and between the unfunded pension

While inside debts have the effect ofliabilities, the number of patent applications,deterring risk taking, there are studies

the unfunded pension liabilities and theshowingtonumber of cited patent citations I found aemployees aggressively take risk taking andnegative relationship. This suggests that thethat as a result, innovation becomes active

greater the unfunded pension liabilities, the(Bova et al. [2015], Chang et al. [2015]).

lower the quality of innovation.

230

that

stock

options

grantedResearch on Accounting Problems in Global
Business
Kenji Shiba
Kansai University
This is a research related to accounting

that

to

overcome

cross-cultural

factors

problems in global business. However, it isrelated to funds management, it is important

not a research on international comparison of

to have a global cash management. Tobita

accounting standards. Why? Because it is ansays

approach from the viewpoint of Japanese

domestic managerial accounting techniques

companies only in their international or

adapted to local needs. From data about

global management. It is not an approachdoing business abroad and the theory of

considering that for Japanese companies,

foreigndoing business abroad means facing different

concludes that the adoption of IFRS iscultures, so that the point of view isinfluencing the country of choice. Nakaoji andmanagement in cross-cultural environments.

Sota, from interviews done in companies

Thus, the important thing here is to be

doing business in Taiwan, present cases

successful in cross-cultural communication.

where IFRS are adopted when it is difficult to

So, it is important to make efforts in

adapt to the local accounting standards.

cross-cultural understanding. Consequently,

Ogata points that companies voluntarily

accounting can become a strong tool for thisadopting IFRS in Japan, tend to do so fromunderstanding, and sometimes it can turn tomanagement points of view. We can think

be a barrier. In this research, we consider

that doing business abroad is included here.

that accounting is also one environmental

And, in order to give a theoretical basis forfactor for doing business abroad.

Shiba’s explanatory notes, Kudo suggests

Takahashi emphasizes that for promoting

that

SMEs

directare

flexibly

investments,

applying

Hayashithat research in Accounting as a culture andcross-cultural communication, it is necessary

researchtotechnology may provide a theoretical basis for

build

an

accounting

systemwhere

financial and management accounting areininternationaltransferof

our research studies.

consistent. Ozawa and Matsumoto explain231

A Study on Integrated Financial Reporting Models
for Business and Nonbusiness Organizations
Chairperson:
Members:

Noriyuki Konishi (Aoyama Gakuin University)
Takashi Asano (Tokyo Metropolitan University)
Shinichiro Ishizaka (Gifu Keizai University)
Akira Kanie (Hokkaido University)
Hirohisa Takata

Kenji Izawa (Certified Public Accountant)
Katsunori Kasuga (Kyushu Sangyo University)
Hiroaki Jindo (National Graduate Institute for Policy Studies)
Maki Tamefusa (Gifu Keizai University)(The Japan Economic Research Institute)

Shigeho Nakayama (Aichi Gakuin University)
Katsuhiko Hizawa (Certified Public Accountant)
Naoya Yamaguchi (Aoyama Gakuin University)
Ryusuke Watanabe (Kanto Gakuin University)
Observers:
Kouji Kurata (Rikkyo University)
Research Cooperators: Satoshi Agari (Financial Services Agency)

The purpose of this research group is to

Eiji Hisamochi (Aoyama Gakuin University)
Hanae Fujiwara (Aoyama Gakuin University)
Toru Watanabe (Certified Public Accountant)
Michimasa Sato (Aichi Gakuin University)
Hironobu Takahashi (Certified Public Accountant）

model from a perspective of (1) entity theory,

attempt to examine the financial reporting(2)

model that can be shared by organizationstransaction and capital transaction, (4)for both business and nonbusiness. It is

exchange

obviously less relevant, whether for business

transaction,or

restrictions,nonbusinesspurposes,financial

cash

conversion

cycle,

transaction
(5)
(6)

(3)

incomeandnon-exchange

fundwith/without

performance

and

other

and

considerations. It is also examined from thebyperspective of management accounting incarrying out different accounting procedures

addition to the auditing and taxation of theinmodel.

statementsofpresentations,accordance

some
which
with

structuresarepreparedtheirrespective

Furthermore,isdiscussed

Sector

Accounting

accounting standards, etc., while operating

International

the same kind of business, for information

Standards

users in particular from the viewpoint of

Financial Reporting Standards (IFRS), andcomparability.

introduced the accounting system of New

An integrated financial reporting model

Zealand, which has been trying to shareprovides disclosure in financial statements

accounting

and key performance indicators (KPI). In

public sectors.

this final report, it is examined about the232

Publicit(IPSAS)andstandards with

International

privateand