025 Conclusion of the meeting on accounting standards for unlisted companies
ASBJ announced on 30 July 2010 the overall conclusion
of the meeting on accounting standards for unlisted companies.
The purpose of this meeting is to consider how the accounting
standards for unlisted companies should be when they
internationalize the Japanese accounting standards, taking
into account that they have received some opinion that the
influence to unlisted companies should be as little as possible.
They have categorized unlisted companies as follows as
a result of discussion, and accounting standards and
implementation guides should differ from one category to
another.
①Unlisted companies subject to Financial Instruments and
Exchange Act（FIEA）: The same accounting standards as
listed companies should be applied as before.
②Large Companies subject to Companies Act but not
subject to FIEA: Basic accounting standards are the same
as listed companies’, but some of the accounting and
disclosure can be simplified.
③Companies that are not defined as Large Companies under
Companies Act: They will make some other categorizations,
and under those categories new accounting guides are to be
prepared, which are different from guides for SMEs.
Unlisted companies are expected to hold fewer stakeholders
than listed companies as a whole, and application of new
international accounting standards could make a situation
where the cost of application could exceed its benefit. To
avoid this situation, they will set accounting standards and
implementation guides suitable for them in terms of size and
their circumstances. This will help the company directors
to concentrate more on the management of their business
than on complicated accounting standards, which we think
will eventually lead to economic growth.
