A press release about the voluntary adoption of International Financial Reporting Standards (IFRS) by companies in Japan has wider significance for all companies, wherever they operate. The press release from the Japanese Financial Services Agency (FSA) announced the results of a study on the voluntary adoption of IFRS in Japan. The study tracked the number of Japanese firms that have chosen to report using IFRS since 2010. The number (as of March 2015) stands at 75 and has doubled in the past two years.

However, what motivates companies to choose IFRS voluntarily also apply in other jurisdictions. According to the Japanese study, they include:

• Efficiency in business management
• Enhanced comparability with competitors
• Better communication with international investors
• Better describes business performance
• Facilitates greater access to international finance

Hans Hoogervorst, chairman of the International Accounting Standards Board, was quoted in the press release saying: “The voluntary nature of IFRS usage in Japan means that this report provides very useful insight into the cost/benefit evaluation undertaken by major Japanese companies before deciding to proceed with IFRS. It is encouraging to see so many Japanese companies recognising the substantial benefits that come with using IFRS as the globally recognised set of accounting standards.”