IFRS Support

We provide total support in various phases of introducing IFRS.

Background of IFRS

In association with economic globalization in recent years, a big movement is ongoing: accounting standards need to be unified globally. Amid this environment, various corporations in Japan are looking at international accounting standards. International Financial Reporting Standards (IFRS), accounting standards set by International Accounting Standards Board (IASB), are spreading rapidly to countries across the world after EU made it mandatory for listed firms in Europe to adopt IFRS in 2005. Already more than 100 countries have decided to adopt IFRS.

Transition to IFRS

A county can transition to IFRS by way of either convergence with IFRS or adoption of IFRS. Convergence with IFRS means gradually closing gaps between the country’s accounting standards and IFRS. Adoption of IFRS means 100% conversion to IFRS from the country’s existing accounting standards.
Japan’s efforts toward IFRS convergence by the end of June 2011 have yielded some fruit and the remaining convergence work is ongoing. On the other hand, the Financial Services Agency of Japan has published an interim report, suggesting that it would make decision on whether to go for mandatory IFRS adoption for consolidated financial statements of listed companies. Since then the companies are increasing that adopt IFRS voluntarily.

Clifix provides total support for companies considering voluntary adoption of IFRS to enable their smooth transition from various stages of conversion.

Clifix’s IFRS transition approach

Meeting new accounting standards

For the convergence with IFRS, many revisions to Japanese accounting standards are expected going forward. We will assist you in meeting those new accounting standards by providing information and solutions for resolving issues. By establishing an internal framework capable of meeting new standards as convergence progress, your company would be able to convert to IFRS smoothly in the event of IFRS adoption.

Supporting conversion to IFRS from Japanese standards

Companies considering voluntary adoption of IFRS need to consider and prepare for IFRS adoption as early as possible.
Issues associated with IFRS are not limited to the accounting function. Meeting IFRS requires company-wide efforts, involving, for example, changing information systems in association with the change of revenue recognition standards and revising HR strategies due to the review of retirement benefits accounting. Leveraging accumulated know-how of Clifix, our CPAs and tax accountants will provide total support for your operations to enable smooth transition from Japanese standards to IFRS. First, we will grasp the current status, identify issues, develop transition processes, and develop solutions. After conversion, we will also provide prompt advice and support on various issues arising in association with the conversion.

IFRS outsourcing services

Clifix’s services are not limited to IFRS transition support. Based on advice or tools we provide, you can outsource your tasks to us. The use of IFRS outsourcing services we recommend would enable us to perform our work together with you in a closer environment to you and prepare accurate financial reporting. Furthermore, we will provide continued advice to meet ever changing accounting standards.