052 Financial report by IFRS
International Financial Reporting Standards will be obligatorily applied in 2015 at the earliest. However, Voluntary application has been already permitted in the year ended May 2010. The first adopter in Japan was Nihhon Denwpa Kougyou Co., Ltd.(NDK).
The runner-up will be Sumitomo Corporation, who will disclose financial statements by IFRS in the year ended May 2011, and next comes Nippon Sheet Glass Company, Ltd on 2012. Other early preparers are Nissan, Fujitsu, and Panasonic. The IFRS wave will arrive earlier than the obligatory application day.
One of the major differences between J-GAAP and IFRS is the idea of disclosure. Since IFRS does not articulate detailed rules and only shows the principles, rules of disclosure and accounting standards are prepared by each company. Freedom of format and writings is given according to principles, so companies could plan out format and what to write in their report for their own.
How will early adopters’ reports come out? We are looking forward to seeing it.
