Accounting in Japan - 1543 Words

What factors do you consider to be primarily responsible for the Japanese accounting system being significantly different from other national systems and what influences do you consider the Japanese system will have on international accounting in the future? INTRODUCTION Japan as an accounting jurisdiction is characterized by the dominance of the state (Haller and Raffournier, 2003). The accounting rules have been set out in the past fifty years as statute law with an implicit objective that accounting should contribute to the growth of the national economy (Haller and Raffournier, 2003). Until recently, the accounting profession had played a minor role in shaping accounting practices, and he accounting profession and auditing†¦show more content†¦They principally provide tax compliance and consulting services, which also includes bookkeeping and preparation of accounts (Haller and Raffournier, 2003). The certified public accountant is a registered member of the Japanese Institute of Certified Public Accountants (JICPA) (Nobes and Parker, 2004). In order to be a certified public accountant, one must pass three levels of examination (Nobes and Parker, 2004). University and college graduates are exempted from the preliminary CPA e xamination. The intermediate examination includes economics, bookkeeping, financial accounting, cost accounting, the Commercial Code, business administration and auditing theory (Nobes and Parker, 2004). Those that pass are referred to as ‘junior CPAs and they must undergo three years of apprenticeship before sitting the final test of technical competence, and submit a thesis and the passing rate is known to be low (Nobes and Parker, 2004). FINANCIAL REPORTING IN JAPAN Business accounting in Japan mentions seven qualitative characteristics such as truthfulness of reporting, understandability, consistency of application and conservatism in general terms (Haller and Raffournier, 2003). The income statement is generally governed by the accrual basis of accounting, the realization principle and the matching of revenue with expenses (Haller and Raffournier, 2003). Financial reporting under the Securities and Exchange Law requiresShow MoreRelatedManagement Accounting Practices in Japan4660 Words   |  19 PagesJournal of Accounting Finance Volume 13 No. 2 September 1999 Manasement Accountins Practices in Japanese Manufacturing Firms; An Empirical investigation Hema Wijewardena AnuraDeZoysa** Introduction During the last few decades there has been a dramatic change in the business and technological environment, specially due to the increased use of new manufacturing practices and technologies such as Just-in-Time (JIT), Total Quality Management (TQM) and Computer Integrated ManufacturingRead MoreFord vs Toyota Essay935 Words   |  4 Pagesnamed Kiichiro Toyoda in 1933. He did not produce his first car until 1935. By this time General Motors and Ford were already operating in Japan. Both companies are manufactures of cars which are sold in the United States. One is made in Japan and the other in the United States. 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