Japanese Culture Factors Influenced the Disclosure of Financial Information
Topic 4
Japanese culture factors influenced the disclosure of financial information
Introduction
Japan is an unique oriental country in many aspects, especially in politics and economy, both western practices and traditional nationalism are coexisted in this country. The period 1890-1940 was just followed the Meiji restoration, and was typical in the history of Japan, at that time, Japan was on the way from a feudal country to a capitalistic country, called modernization. Many western practices were being more and more adopted, however, at the same time, traditional rules still had strong influences in Japan. Under this background, this report will discuss the Japanese cultural factors during 1890-1940 that influenced the disclosure of financial information.
In 1868, Japanese government began the social and economical reform, called "Meiji Restoration”，which represented that Japanese government decided to guide this oriental country to the way of modernization and westernization, and many conventions in political and economical fields would be modified to comply with new practices. Disclosure of financial information was also influenced by this trend, and being perfected.[1]
Foreign accounting culture
Before Meiji period, Japan's accounting was imported from China and adapted to the situation in Japan. It was single entry for accounting, but in Meiji period (1868-1912), there appeared a trend of accelerated modernization of accounting. Moreover, American accounting standards and double entry accounting were translated into Japanese, and most of Japanese enterprises began to use this new method. Though single entry accounting was still being used at that time, undoubtedly, double entry accounting could provide more information disclosure to the public compared with the old method.
Political factors
During the period 1890-1940 of Japan, politics from instability to stability and the modern Japanese political system was built after the Constitution of
Japanese culture factors influenced the disclosure of financial information
Introduction
Japan is an unique oriental country in many aspects, especially in politics and economy, both western practices and traditional nationalism are coexisted in this country. The period 1890-1940 was just followed the Meiji restoration, and was typical in the history of Japan, at that time, Japan was on the way from a feudal country to a capitalistic country, called modernization. Many western practices were being more and more adopted, however, at the same time, traditional rules still had strong influences in Japan. Under this background, this report will discuss the Japanese cultural factors during 1890-1940 that influenced the disclosure of financial information.
In 1868, Japanese government began the social and economical reform, called "Meiji Restoration”，which represented that Japanese government decided to guide this oriental country to the way of modernization and westernization, and many conventions in political and economical fields would be modified to comply with new practices. Disclosure of financial information was also influenced by this trend, and being perfected.[1]
Foreign accounting culture
Before Meiji period, Japan's accounting was imported from China and adapted to the situation in Japan. It was single entry for accounting, but in Meiji period (1868-1912), there appeared a trend of accelerated modernization of accounting. Moreover, American accounting standards and double entry accounting were translated into Japanese, and most of Japanese enterprises began to use this new method. Though single entry accounting was still being used at that time, undoubtedly, double entry accounting could provide more information disclosure to the public compared with the old method.
Political factors
During the period 1890-1940 of Japan, politics from instability to stability and the modern Japanese political system was built after the Constitution of