Senior Researcher, Nomura Research institute
  • WORKSHOP: How IFRS15 helps understand company business

    02 Jan 2019

    IFRS15 requires companies that enter into long-term contracts with customers, such as telecoms or membership services, to report revenues from such contracts separately from other revenues. Effective since 1 January 2018, the regulation requires a change in reporting practices.

  • The reality of Corporate Governance Code compliance in Japan

    19 Nov 2018

    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.
  • Does FV Measurement contradict long-term investment?  -- Discussion EC consultation Fitness Check

    11 Jul 2018

    The European Commission(EC) published consultation ”Fitness Check” asking people with comprehensive view for the fitness of the EU reporting framework for public company to EU strategy of enhancing environmental investment. Recently EU issued a report which discusses sustainable finance by "High-level experts group(HLEG)" and announced its’ action plan.
    This consultation is one of them. It asks people to possibility to amend IFRS 9 FV measurement for long-term investment. This is not issue only for EU. We discussed this consultation and summarize what we learned.
  • 長文型監査報告書(Key Audit Matters) 導入に向けて --FSAパブコメに意見送付

    18 Jun 2018

    Japan FSA had an announcement for amendment of the audit standard to disclose Key Audit Matters on the independent auditors report. For responding FSA's public consultation, investors, researcher, information provides, CPAs, company accounting managers, internal auditor are gathering together,  to discussed about this amendment of audit standard. This is the result of discussion.
  • Better disclosure-how to judge material items on IFRS Financial Statements?

    11 May 2018

    We have seen cases where information necessary for analysis are not disclosed in the breakdown of operating expenses, and a big number is disclosed, without its breakdown table in the footnote, as accounting item named "other“, in the IFRS financial statements.
    There is a disclosure option in expenses disclosure in IFRS, and companies think that they can choose one. By Function and By Nature, or their mixed, disclosed as one detailed table from the sum of SGA. In this case, it becomes difficult to understand detailed table, and "the other" becomes big number. We sent an opinion that threshold should be introducedto make disclosure more granular, and specific accounting items should be addedon IAS 1, to IASB before. 
    But this time, we discussed at the same time, some investors believe that most important disclosure should be focused on what is material for company, not threshold, not certain items.
  • How Data travel through the market?

    23 Feb 2018

    This is discussion for role and future of DATA from financial statement. 
    You may imagine that analysts read financial statements prepared by company, evaluate company’s value and compare with peer companies….BUT, in reality, financial statements are used in various ways. There are many quant analysts and passive investors using information as “data”, which is standardized in a database (DB), and they have become the majority of market participants globally. In such case, real time data distribution has important role on the impact on the stock price. Also, use of Artificial Intelligence (AI) in analysis and investment has become more common today. 
    First, financial statements have to be converted into “Data” and then the data can travel through the market. 
    We discussed how financial data are used, but from a different angle, and consider the role of future financial statements and accounting standards. 
  • 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.