Internationalization Of Accounting Standards For Consolidation - Japan

Internationalization of consolidated accounting standards - Japan: case studies The purpose of this paper is to examine internationalization of accounting standards from the international perspective, especially in the United States and Japan. This is a particularly timely topic, as the standardization of financial markets is a prerequisite for international free trade. Given the trend of globalization, companies are strongly motivated to look for a unified accounting system.

Japan's experience with the consolidated financial statements shows unexpected problems related to harmonization of accounting standards. Every country has its own cultural identity. It is expected that each country will make efforts to make each country align its own financial reporting method with international reporting standards so that each country makes its report more useful for foreign users. However, it will harmonize these standards with their culture as soon as possible. In contrast, Japan adopted a unified and comprehensive reporting standard, but tried to apply these criteria carefully without harmonizing it with culture. Therefore, its unique business organization structure tends to reduce its consolidated financial report rather than being more useful to the reader.

The purpose of this white paper is to consider internationalization of accounting standards from an international perspective, especially in the United States and Japan. This is a particularly timely topic, as the standardization of financial markets is a prerequisite for international free trade. Given the trend of globalization, companies are strongly motivated to look for a unified accounting system. If a company has to prepare accounts based on a set of several different rules, they suffer considerable cost penalties for various capital market investors or other domestic objectives to operate, wasted You will feel the money. This greatly limits the global opportunities of multinational companies. It is therefore important to understand the differences between accounting standards, the reasons for their existence, and the problems they pose.

The consolidated financial statements of Nintendo have been prepared in accordance with accounting standards generally accepted in Japan. The assumptions that may affect the value of assets, liabilities, income and expenses in preparing such statements are based on the accounting policies that management has selected and adopted. Although management considers the possibility that historical results and future events will form assumptions in a reasonable manner, due to the inherent uncertainties inherent in these assumptions, actual results differ materially from these assumptions there is a possibility. The significant accounting policies adopted in the consolidated financial statements of Nintendo are detailed in the "V" section. Basis for submitting consolidated financial statements