Issues affecting decisions on mandatory adoption of International Financial Reporting Standards (IFRS) in Japan
Accounting, Auditing & Accountability Journal
ISSN: 0951-3574
Article publication date: 20 June 2016
Abstract
Purpose
The purpose of this paper is to explore whether there are differences in either the level of support for the mandatory adoption of International Financial Reporting Standards or the arguments made by various stakeholder groups within Japan’s Business Accounting Council (BAC) during different time periods from 2009 to 2013.
Design/methodology/approach
Using a content analysis of related BAC meetings and referring to Gernon and Wallace’s (1995) accounting ecology framework, this study provides rigorous and holistic insights into the debates concerning the adoption of IFRS in Japan. Time-series analyses are specifically applied to unravel continuous or discontinuous patterns of BAC members’ statements.
Findings
The results indicated significantly higher levels of disapproval of mandatory adoption of IFRS by representatives from accounting academics, manufacturing industry, and the Financial Services Agency than by those from the Japanese Institute of Certified Public Accountants. Also, a lower level of disapproval of mandatory adoption of IFRS was found in 2009 than in 2012 and 2013. The results further demonstrated that diversity of opinions and arguments existed in different stakeholder groups as well as in different time periods.
Research limitations/implications
The findings of this study suggest that accounting research will be enhanced by an objective and critical examination of the sociological context of the globalization (convergence) process.
Originality/value
The results of this study will provide answers related to the possible, probable, and desirable aspects of the globalization (convergence) process by unraveling the causes and consequences of certain patterns presented in BAC members’ statements.
Keywords
Acknowledgements
The author would like to appreciate the helpful comments and suggestions of the editor, anonymous reviewers, Professors Teruyuki Kawasaki, Yoshihiro Tokuga and Seong-Pyo Cho, the participants of the 2015 Annual Meeting of the European Accounting Association.
This study was supported by the Grand-in-Aid for Scientific Research, KAKENHI (C)26380606 and (A) 24243053.
Citation
Tsunogaya, N. (2016), "Issues affecting decisions on mandatory adoption of International Financial Reporting Standards (IFRS) in Japan", Accounting, Auditing & Accountability Journal, Vol. 29 No. 5, pp. 828-860. https://doi.org/10.1108/AAAJ-07-2014-1765
Publisher
:Emerald Group Publishing Limited
Copyright © 2016, Emerald Group Publishing Limited