The components of Japanese Generally Accepted Accounting Principals

Japanese Generally Accepted Accounting Principals

The Japanese GAAP seems so intricate and is almost impossible for outsider to get a hung of the contents.  This is mostly becasue it is underpinned by a hierarical set of Japaense version of generally accepted corporate accounting standards, which includes:

1. Accounting standards published by the Accounting Council or the Accounting Standards Board of Japan

2. Corporate Accounting Application Guidelines and Practical Response Report published by the Accounting Standards Board of Japan

3. Practical guidelines and Q & A of the Accounting System Committee, etc. published by the Japan Certified Public Accountants Association

4. Generally accepted accounting practices

In addition, where there is no clear accounting standard for corporate accounting when making a judgment on the appropriateness of financial statements, like the accounting policy adopted by management and its application method , the auditor can use the following as a reference in practice:

・ Committee research report of Japan Certified Accountants Association (related to accounting)

・ Internationally recognized accounting standards

・ Tax law (the provisions of the Corporate Tax Law, etc. that are considered appropriate for accounting purposes)

・ Authoritative publishements on accounting