Accounting history of Japan
International
Developments
in
Accounting
ACFI 3217
P 13007477
Word count: 2,801
Japan is an Asian country that has a leading position in stock markets and finance industry all over the world, which accounting also has a history of more than one hundred years. The accounting system has experienced a lot of significant events and become to be more and more mature. Culture and institutional factors have majorly influenced the development of accounting in Japan, and also led the problems in implementing International Financial Reporting Standards (IFRS).
In 1927, the enactment of the Accountants Law marked the beginning of professional accountants working in Japan. Following its defeat in the Second World War, Japan was put under US occupation and in 1948, the country and was asked to enact The Certified Public Accountants (CPA) Law and Securities and Exchange Law. This law required that Japanese accountants be trained similarly to US accountants in order to provide better service to the US economy (Roberts, Weetman and Gordon, 2008, p592). It also provided the impetus, the following year, for the creation of the Japanese Institution of Certified Public Accountants (JICPA) the first self-disciplinary association in Japan. In 1953, the JICPA combined with Shadan Hojin as a non-profit organization under the Civil Code.
Because of the presence of U.S. forces, many measures were brought into Japan. These new measures had accelerated the democratization of the economy, and led to the dissolution of several large conglomerates. In addition, foreign capital started to become a factor on the Japanese stage. After 1951, CPAs developed significantly in conjunction with amended SEL. In particular, in 1966 the JICPA was changed into a special entity under the amended CPA Law in order to reinforce its self-regulatory function. This required all CPAs to become its members. Before that membership had been voluntary, and audits practices by CPAs were not
Developments
in
Accounting
ACFI 3217
P 13007477
Word count: 2,801
Japan is an Asian country that has a leading position in stock markets and finance industry all over the world, which accounting also has a history of more than one hundred years. The accounting system has experienced a lot of significant events and become to be more and more mature. Culture and institutional factors have majorly influenced the development of accounting in Japan, and also led the problems in implementing International Financial Reporting Standards (IFRS).
In 1927, the enactment of the Accountants Law marked the beginning of professional accountants working in Japan. Following its defeat in the Second World War, Japan was put under US occupation and in 1948, the country and was asked to enact The Certified Public Accountants (CPA) Law and Securities and Exchange Law. This law required that Japanese accountants be trained similarly to US accountants in order to provide better service to the US economy (Roberts, Weetman and Gordon, 2008, p592). It also provided the impetus, the following year, for the creation of the Japanese Institution of Certified Public Accountants (JICPA) the first self-disciplinary association in Japan. In 1953, the JICPA combined with Shadan Hojin as a non-profit organization under the Civil Code.
Because of the presence of U.S. forces, many measures were brought into Japan. These new measures had accelerated the democratization of the economy, and led to the dissolution of several large conglomerates. In addition, foreign capital started to become a factor on the Japanese stage. After 1951, CPAs developed significantly in conjunction with amended SEL. In particular, in 1966 the JICPA was changed into a special entity under the amended CPA Law in order to reinforce its self-regulatory function. This required all CPAs to become its members. Before that membership had been voluntary, and audits practices by CPAs were not
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