010 “Misunderstandings on IFRS” published by Financial Services Agency of Japan
Financial Services Agency of Japan published
“Misunderstandings on IFRS” on April 23. Explanation is
given towards the misunderstandings that we often hear
so that proper understanding of IFRS is encouraged.
Followings are the examples.
(Wrong) Listed companies have to get prepared for the
IFRS because its application is going to be obligated very
soon.
(Right) Listed companies which meet certain condition can
apply the IFRS to their consolidated financial statements
voluntarily.
(Wrong) According to IFRS, all the accounts are subject to
measurement by fair value (market value) including land
or fixed assets.
(Right) Scope of measurement by fair value (market value)
in IFRS would not differ much from that of Japanese
standard.
This publication seems to be information offered for
general people to know widely rather than for people in
charge of company’s accounting. So, those who have
already started studying IFRS might say that they have
already known them. However, we think that this is worth
reading so as to know what types of misunderstandings are
generally created regarding IFRS.
