A Comparative Research For Major Projects Of CAS,JGAAP And IFRSs

In order to increase the comparability of financial statements so that investors can learn more about potential investees and enterprises across the world can receive the optimal valuations and investments,International Accounting Standards Board(IASB)(previously,International Accounting Standards Committee,IASC)was restructured in early 2001 and published IFRS Release No.1 in June 2003,which has been continuously improved thereafter.Since 2005,IFRS has been enforced in the listed companies in the European Union.In 2005,the United States converged its accounting standards to IFRS.In February 2006,China promulgated its new accounting standards fully converging to IFRS,and in July 2006,the Business Accounting Council of Japan's Financial Services Agency issued the Convergence of Accounting Standards,including the roadmap to the inclusion and enforcement of IFRSs.This paper first briefly compares the organization systems and the historical evolutions of the accounting standards for Japanese enterprises in the capitalist system in the Oriental culture,the accounting standards for Chinese enterprises in the socialist system in Oriental culture and the accounting standards for international enterprises in the capitalist system in the Occidental culture.Next,this paper analyzes the differences among the three accounting standards in the handling of key items in financial statements such as inventories,fixed assets,reserve funds,financial instruments,goodwill,sales revenues,sales costs and asset impairment.Then,the JGAAP-based balance sheet and profit and loss statement of Nippon Sheet Glass Co.Ltd.of 2012 are converted into CAS-based ones as an example according to the mapping relationship shown in the analysis.What is followed is the description and analysis of the effects of the differences between the three accounting standards on the net profits and losses indicated in financial statements.The example and the analysis show that the results in enterprises' financial statements are directly changed by the convergence of the domestic accounting standards to the international accounting standards.The significance of this paper is to introduce the theory and the method for the conversion of financial statements based on the accounting standards of one country to those based on other accounting standards,so that financial information analysis is easier for investors.In addition,the mapping relationship can be used in the new XBRL system for programming to improve the conversion speed and accuracy.