122843727 Sistemul Contabil Japonez

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Japanese Accounting System Students: Tomescu Viorica, Mamaliga Lina Coordonator: Lector Sup. L. Erhan

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Transcript of 122843727 Sistemul Contabil Japonez

  • Japanese Accounting System

    Students: Tomescu Viorica, Mamaliga Lina Coordonator: Lector Sup. L. Erhan

  • Brief introduction to Japanese accounting analysis

    In the book "International accounting" Mueller, Gernon and Meek (1994) World countries classified into four main groups, depending on the peculiarities of their accounting systems, and Japan have put it together most Continental European countries in the group. The Japanese Accounting , aims to present the world with quality research on diverse themes relating to accounting, thereby helping improve the economic welfare of societies around the world through better accounting systems.Apparently, into fact, the legal framework of accounting, Japan deserves place in this group, but if we look from the perspective of presentation and publication of financial accounting, Japan closer to the Anglo-Saxon oriented investors andDecision.

  • Industrialization was started in Japan in 1868, with the restoration of the Meiji dynasty. In the period 1890-1899 appeared first commercial code Franco-German inspired, focused on protecting the interests of creditors and the state as the main collector of taxes. Until the Second World War the Japanese economy was controlled by political and industrial consortia that had a central bank, called zaibatsu.

    After World War II Japan has become one of the major economic powers. Tokyo Stock Exchange is among the most important fairs of the world, the transaction volume in 1994 exceeding three times that of the London Stock ExchangeFor over 30 years, Japan was the second economy in the world, but the year of 2010 was surpassed by China, a country with a population ten times higher.

  • Macro-economic indicators of Japan In 2012, Japan was ranked 3rd in the world in the amount of gross domestic product by 4.3 trillion $ GDP

  • Milestones in the development and evolution of Japanese accounting

    1890 was adopted Commercial Code of Japan1948 - adopted a law on the stock exchange and securities - ("Securities and Exchange Law");- Appeared Certified Public Accountants Law ("Certified Public Accountants Law")1949 - were issued for Enterprise Financial Accounting Standards ("Financial Accounting Standards for Business Enterprises")- Was established as self-disciplinary association Japanese Institute of Chartered Accountants - 'The Japanese Institute of Certified Public Accountants' (JICPA)

  • 1950 - were established regulations regarding the terminology, forms and methods of preparation of financial statements, audit standards

    1960 - began publishing his first professional accounting publications JICPA (Japanese Institute of Certified Public Accountants)

    1963 - became subject to audit financial statements of companies whose shares were traded over-the-counter (under different conditions than the stock market)

    1965 - were taken to prevent fraudulent financial statements

    1967 - audit corporation was founded first, in accordance with the Law of Certified Public Accountants

    1971 - were issued accounting standards for private schools

    2003 - amended Law of Certified Public Accountants

  • Japan has a triangular system of regulation of accounting and financial reporting. The three basic laws are the Commercial Code, Act grant and tax law, in addition to longer apply a number of ancillary regulations.

    Report of influence between the three mentioned regulations tend to change from year to year for FSA and against the Ministry of Justice, which reorients accounting approach from a legalistic perspective on economic.

  • Standardization bodies in Japan

    In Japan there are several academic societies Accounting: 1. JAA, 1937 the Japanese Association of Accounting;

    2. JCAA, 1975 the Japanese Association of Cost Accounting;

    3. Japan Audity Association, 1978 the Japanese Association of Audit;

    4. Japan Accounting History Association, 1982 the Japanese Association for the History of Accounting;

    5. Association of Business Analists Japan, the Japanese Association of Business Analysts;

    6. Japanese Association for International Accounting Studies. 1984 Japanese Association for International Accounting Studies;

    7. Bookkeeping Japanese Association, 1985, Japanese Accounting Association;

  • 8. The Japan Society for Social Science of Accounting, 1986, Japanese Society for Social Accounting;

    9. Japan Corporate Social Accounting and Reporting Association, 1988, the Japanese Association of Social Accounting and Reporting;

    10. Association of Accounting in Mathematics, 1988, the Association of Accountants in Mathematics;

    11. Association of International Studies for Public Sector Accounting Association for International Studies Public Sector Accounting;

    12. Japan Tax Accounting Association, Japanese Association of Tax Accounting.

  • Body advising the Financial Services Agency - Business Accounting Council - BAC - Japanese normalization is the body of accounting. He is approached by analogy, the National Accounting Council (CNC) in France, because most of its members are non-governmental personalities.

    In response the various applications of the Ministry of Finance, BAC prepares accounting standards, recognized as the "Business Accounting Principles." All Japanese companies which fall under the Law stock must meet these standards.

    On July 26, 2001, through the joint effort of ten leading institutions in the private sector of the economy, including JICPA was established Accounting Standards Foundation (fasf - Financial Accounting Standards Foundation).

    ASBJ (Accounting Standard Board in Japan) was organized under the auspices fasf as an independent private entity intended to establish standards in accounting and to establish guidelines for their application.

  • Accounting Profession in Japan

    Japanese accounting profession exerted relatively little influence on the financial reporting as compared to the Japanese government or the Anglo-Saxon countries profession. "Japanese Institute of Chartered Accountants' (the Japanese Institute of Certified Public Accountants: JICPA) was established in 1949 as an independent association, and in 1966 was approved by law (Certified Public Accountants Law) and has over 21,400 members (15,500 seniors 5,750 juniors and 156 audit firms).

    Professional body (JICPA) issue recommendations on accounting issues that tend, however, be limited to small things. Significant aspects covered by the accounting principles issued by the BAC.

    Since the main objective oversight of the accounting profession as a whole and maintain a high level of ethics and professionalism, JICPA is involved in various other activities, such as:

  • Quality control audits made by members of the body of experts, including checking the quality of company activities;

    Ensuring continuing professional education, including the organization of courses for junior experts;

    Active participation with the Business Accounting Council in the development of accounting and auditing standards,

    Cooperation with other professional bodies;

    Active participation in international organizations. JICPA is a founding member of IFAC (International Financial Accounting Committee), IASB (International Accounting Standards Board) and CAPA (Confederation of Asian and Pacific Accountants), and one of the most important members of the IAASB (International Auditing and Assurance Standards Board).

  • In addition to the body of the accounting profession in Japan working and a Federation of tax advisors, bringing together representatives of other professions. The services related to tax or financial advice business, bookkeeping, preparation of financial statements or tax advice specific areas (such as inheritance tax).

    After 1996, the accounting profession may be exercised by audit firms (Kansa Hajin) comprising at least five associates, all auditors. Associations are responsible indefinitely and solidarity. Very few diploma holders working outside the profession.

  • The General AccountingGenerally accepted accounting principles in Japan (Japanese GAAP) include accounting principles issued by the BAC (Business Accounting Council), the ASBJ issued Accounting Standards (Accounting Standard Board in Japan) and practical guidelines prepared by JICPA, the professional body of this country.Accounting Principles are a set of rules that includes a seven general principles, covering every aspect of accounting and reporting in the field: a. fair value; b. record keeping; c. the distinction between capital and profits; d. true and fair view; e. permanence or continued application methods; f. consistency; g. conservatism.

  • Additional notes materiality principle appears in the General Principles for business and is not included in the basic set. However, it is just as important as the other seven general principles.

    The principle of fair value is the most important of the general principles for businesses. According to him, a company must provide true and fair view of its financial conditions and results of operations involved.

    The principle of keeping registers specifies that a company must keep accounting records in a strict order. In addition, although not directly stated, this principle implies that all accounting treatment of the undertaking must be very strict. In this context, the principle of keeping records involving the same philosophy as the principle of fair value.

  • The principle of distinction between capital and profit mainly refers to the distinction between capital surplus and profit. In Japan, the emphasis is on profit distribution to shareholders and authorities. In terms of income determination that will distribute the distinction to be made relates in particular to the capital and undistributed profit to be distributed.

    True and fair view principle states that a company must clearly disclose its financial conditions and results of operations they undertake, so the information does not mislead users. This principle applies to the financial statements of the enterprise as a whole, and explanatory notes. On this principle, disclosures regarding accounting principles and other final trial balance are necessary, end users can better understand the financial conditions and results of the undertaking.

  • Going requires an undertaking not to change its accounting policies without reasonable grounds. If it changes its policies must be communicated reasons for such a change.

    Conservatism principle, known as the precautionary principle, require the undertaking to make prudent accounting changes and estimate the moments when future events will have a negative impact on its financial situation. On the other hand, the principle prohibits too conservative estimates.In Japan, a company often prepare multiple sets of financial communicated dedicated purposes, including to shareholders, extension and repayment of loans, payment of taxes. The principle of consistency require a company to have a set of communicated for each purpose separately and not in any way distort accounting data from managerial purposes

  • Materiality principle was issued before the earlier principles, the additional notes to general principles for business enterprises. He asks a company to make judgments about the costs or revenues involved a change of accounting method. Accounting standards should not apply to intangible items.

    This principle is not contradictory to that of keeping records or true and fair view, as it seeks to achieve the purpose of efficient financial statements, which is the purpose of those two principles.

  • Differences between IFRS and Japanese accounting systemPresentation extraordinary income and expenses in the annual financial statements:JGAAP related items Extraordinary income and expenses are presented according to their natureIFRS, no element of profit or loss shall not be presented in the financial statements as item (income or expense) Extraordinary Recognition of contingent liabilities: JGAAP: contingent liabilities are recognized in the accounts when they are expenses or losses in certain circumstances indicated it happens after a purchase and measure the likelihood is reflected in its importanceIFRS: contingent liabilities that are liabilities arising from past events are recognized regardless of the output probability of economic resources, which occur when the fair value can be measured reliably

  • Amortization of goodwill: JGAAP: Goodwill is recognized as an asset and is amortized on a systematic basis over a period of 20 years or lessIFRS: Goodwill is not depreciated

    In August 2007, the Accounting Standards Board Japan and the IASB announced their agreement to accelerate the convergence by eliminating major differences between GAAP Japan and IFRS by 2008 and the remaining by the end of 2011. Japanese authorities have imposed no obligation to reconciliationCommunity issuers that prepare their financial statements inaccordance with IFRS. Therefore, it was considered appropriate,from 1 January 2009 to consider that Japanese GAAP equivalent to IFRS adopted.

  • Trends in the evolution of Japanese accounting Recent years have brought major changes in the Japanese accounting system. In 2001 and established a private body to create a conceptual framework and to issue accounting standards. Since fiscal 2002 many of the traditional characteristics of accounting were abandoned, the idea of international accounting model orientation.

    Summarizing Japanese accounting features, Christopher Nobes reach the following conclusions: German traits influence is manifested by: - Government control; - Inaccessible nature of the accounts; - Uniform formats for financial statements; - Predominana fiscal rules; - Strict application of historical cost; - Legal form prevailing reality; - Legal reserve (25%) etc.

  • American traits influence is manifested by: - special rules for listed companies;- presence of US formats; - information on cash flows; - goodwill; - chosen method in accounting for stock assessment should be the same as that chosen for taxation (Supports all methods of assessment, but, contrary to American practice, the most used is CMP); - US accounting terminology used; - Publication of "earnings per share".

    Features of concern: - using historical exchange rates for certain monetary items;- expressing financial statements as a percentage;- the mold special "statutory audit" (Statutory Audit).

  • The Annual Salary for Accountant

  • THE FUTURE OF ACCOUNTING IN JAPANSince the end of World War II, the Japanese economy has undergone tremendous development, but it is the authors opinion that the accounting structure in Japan has not kept pace with its own economic growth. For example, the practice of publishing interim financial statements as part of the financial reporting of a business was adopted only ten years ago, and consolidated financial statements have only recently been required. As of yet, cash flow statements and value-added statements are not included among published financial statements. Although Japan ranks economically among the leading nations of the world, its financial reporting is inadequate.Since the end of the 1960s, an inter-national revolution in financial reporting with economic income measurement giving ground to an informational approach, has been in progress. In Japan, there also has been much interest in this informational approach, but as yet there is little evidence that this approach soon will replace economic income meas-urement. A more likely scenario is one in which ever-increasing foreign investment in Japan and Japanese investment abroad will force a gradual but definite evolutionary change or adaptation upon the accounting structure in Japan. Future development of Japanese accounting will be of special interest to accounting historians as international investment patterns involving Japan become more complex.

  • 5 Big Reasons To Smile On International Accounting Day 10 NovemberYou're in demand.Opportunities for accounting professionals are increasing as companies strive to support business growth, keep up with regulatory compliance mandates and fill job openings as more baby boomers retire.You're a hot commodity.Competition for talent is boosting compensation. In addition to higher salaries, employers are offering attractive incentives, such as extra vacation days and flexible schedules, to attract and retain top performers.You can find sizzling salary hot spots.Certain U.S. markets pay well above the national average. Accountants can earn the most inNew York City,San FranciscoandSan Jose, Calif., according to theSalary Guide.You've got something special.Specialized skills are in short supply. Talent shortages are emerging in areas such as accounting, audit, financial analysis, compliance and business systems. The result? Increased job opportunities and compensation for professionals with these backgrounds.You can bank on big data remaining a big deal.The world's dependence on data is creating an array of opportunities for accounting professionals who canmine and interpret the information.

  • Bibliographic sources:Contabilitate internaional, Neculai Tabara, Emil Horomnea, Mirela-Cristina Mircea Comparatie intre sistemul contabil japonez si standardele IFRS, English version 3.0. Ernst & Young

    Asemanari si deosebiri o comparatie intre IFRS si JGAAP, PricewaterhouseCoopers http://www.hp.jicpa.or.jp/english/ http://eurlex.europa.eu/Notice.do?mode=dbl&lang=en&ihmlang=en&lng1=en,ro&lng2=bg,cs,da,de,el,en,es,et,fi,fr,hu,it,lt,lv,mt,nl,pl,pt,ro,sk,sl,sv,&val=485600:cs http://businessday.ro/03/2011/economia-japoniei-in-cifre-1970-2010/