What is IFRS?
IFRS (International Financial Reporting Standards) is a set of accounting standards developed by International Accounting Standards Board (IASB) and over 110 countries permit or require IFRS for public companies.
IFRS required companies
Public companies that continuously prepare and disclose their proper financial statements are applicable. When IFRS is applied, these companies need to perform financial reporting of a consolidated financial statement by IFRS.
Trend of Japan and the United States
Originally, Japan was expected to transition to IFRS sometime in the year 2015. On June 21, 2001, Shozaburo Jimi, state minister in charge of financial, economic and fiscal policy, announced that Japan will postpone the transition to IFRS to 2017 or later because of requests from industries which had great damage from East Japan earthquake.
Since 2002, the United States has been working in the direction of convergence, not to accept all regulations or article composition of IFRS, but to change its current accounting standards (GAAP) to adjust to IFRS.
However, AICPA (American Institute of Certified Public Accountants) proposed to permit public companies arbitrary application of IFRS to SEC (U.S. Securities and Exchange Commission) on August 17, 2011. Compulsive transition to IFRS may not happen immediately; the trend of IFRS and US GAAP is a situation which we cannot ignore.
IFRS and ERP software package
About financial statement
Instruction for creating various financial statements, such as USGAAP and IFRS.
“Journal Name” function allows you to create IFRS compliant accounting reports by generating journals adjusted for JP GAAP and by selecting financial statements settings per journal.
“Dimension” function allows you to create IFRS-compliant accounting reports by generating journal adjusted for JP GAAP and by selecting financial statements settings per Dimension.
“Reporting Ledger” function creates three types of accounting reports, BASE, IFRS and LOCAL. BASE is for your accounting standard, IFRS and LOCAL are for IFRS standard and for local standard. This function allows you to select and create accounting reports based on standards you wish to apply when creating financial statements.