The Japanese government said it is delaying
the road map towards adoption of IFRS for publicly traded companies
as a result of concerns over additional cost for already struggling
Japanese companies.
The Japanese Minister for Financial Services
Shozaburo Jimi told Japanese media that since the earthquake and
tsunami hit Japan, business leaders have opposed the introduction
of IFRS by the 2015/16 government deadline.
Jimi said businesses are saying that the
adoption of IFRS would result in extra investment and
administrative costs for companies damaged by the disaster.
Japanese companies currently report under
Japanese GAAP and before the announced delay a road map was put in
place by the Japanese Financial Services Agency (FSA) that would
make it mandatory for Japanese public companies to report under
IFRS in 2015 or 2016.
The government and the FSA are now abandoning
the mandatory adoption for fiscal 2015 and are yet to make a final
decision on whether or not to adopt IFRS.
The FSA also said that in the event Japan
decides to require IFRS there will be a transition period of five
to seven years prior to mandatory adoption in order to allow
companies sufficient time to prepare for a new reporting
standard.
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By GlobalDataAccording to Japanese news reports the
government is said to be keeping a close eye on the pending US
decision whether or not to adopt IFRS and that it will make any
further decisions over IFRS adoption on the back of the path the US
decided to take.
