• The reality of Corporate Governance Code compliance in Japan

    10 Nov 2017

    Opinion paper issued by Nomura Research Institute.
    Conducted original survey and summarize the result how companies are  feeling corporate governance code in 3 years past.
  • Why excessive aggregation “Other operating expense” in P&L?

    25 Sep 2017

    To explore the issue of why the line item such as "Other operating expense", presented in the P&L and notes to the financial statements, is frequently a large amount, in the context of the rest of the items in the P&L, that is not accompanied by additional detail or disaggregation. This issue results in investors having a diminished ability to understand the financial performance of those companies that do not disclose this detail. We would like to discuss the issue of why companies fail to disaggregate these line items, and think about how disclosures could be improved. In addition, 
  • Operating? /non-Operating? Is current disclosure helpful for understanding companies?

    26 Jun 2017

    Is current disclosure of Operating profit /expense helpful for understanding companies?
    We discussed how difficult to distinguish whether Operating / Non operating in financial statements recently with investors, information providers, accounting setters in Hong Kong. 
    It makes lower comparability and becomes barrier of understanding company value.
    We discussed several points of view to solve it and revealed that disclosure issues of IFRS are highly common among investors globally.
  • Evaluation of company’s value in acquisition & ideal disclosure

    23 Jun 2017

    "How investors analyse and what managements need to explain, when M&A happened?" We discussed this issues in Japan, with some accounting standard setters.  
    We have been discussing about comparability issue and line item classification issue from users’ point of view in the past workshops. At the last workshop ( , we discussed on whether “share of profit/loss of associates” is “operating” or “investing” may differ by company or its business, focusing on the point that “What is really comparable? Does same account name mean same substance? Which is same in substance?”.

    The way of business for companies are changing nowadays, that we should focus on the point that more M&A is happening in place of building factory and hiring people in old times. So we focused on the point how investors should evaluate companies’ value in acquisition and what companies need to explain in our discussion.
  • Extended Auditor's report for improving corporate governance

    09 Mar 2017

    The article introduce Importance of Extended Auditor's report for corporate governance perspective. Target is general people, not accounting / audit professional. Currently the quality of financial statements becomes more important for communication between investors and companies. Following UK, EU is going to mandate it soon. Investors and companies in Japan or countries which hasn't discussed yet, might be good to see this idea once.
  • Way of disclosure in Principles-based Standards?How “operating activities”(Main business?should be presented?

    09 Mar 2017

    Primary Financial Statements is quite important for investors to understand company business. However during company business model is changing and investor analysis is also changing, how presentation should describe "Operating Activities". Especially clasification of investment or business could become matter. We discussed this issues; what investor requires, how company thinks, and what accounting standards should be.
  • What is the role of Balance Sheet? (Thinking toward Primary Financial Statement project)

    30 Dec 2016

    We had a workshop to discuss about data usage issues of IFRS Financial statements with IASB, in Japan. CFA JAPAN working group is a core member, but open for other investors, analysts, information providers are also joining together. CPAs, IR/Financial department people too. We discuss about Balance Sheet issues especially focus on IFRS9. We sent some message to IASB in this workshop and share with other member of IASB after this workshop finished with this presentation.