Support for IFRS conversion

Support for IFRS conversion

In June 2009 the Business Accounting Council (BAC), an advisory body of the Financial Services Agency (FAS), issued an interim report, "Application of International Financial Reporting Standards (IFRS) in Japan (Interim Report)" which proposes to allow certain listed companies to carry out an early adoption of IFRS, followed by a final decision about the mandatory adoption of IFRS around 2012.

If IFRS is adopted, large-scale reforms not only of the application of new accounting policies but also modification of IT systems and internal control systems will be required of companies. Having a view of the future adoption of IFRS, we support our clients' preparations to make the conversion, providing such services as conducting seminars and considering the effect of the adoption.

Our approach features the following points.

• We pursue the essence of IFRS and advise in accordance with the principle of IFRS.
• We use a top-down approach.
• We advise establishing an outline and a policy of disclosure, considering the views of investors and analysts.