Japan Gaap vs Ifrs

©KUROKI

Japanese GAAP is equivalent to IFRS.

PRESENCE

NYSE 14.2

Japan has one of the world's largest equity markets

Market value (as of the end of 2003)

TOKYO

3.7

NASDAQ

LONDON

3.6

3.0

( trillion)

Source:World Federation of Exchanges

Japanese issuers play an important role in Euro markets

Value of bonds issued outside Japan by Japanese resident borrowers (including banks)

billion 3,500 3,000 2,500 2,000 1,500 1,000 500 0

1998 1999 2000 2001 2002 2003

Source:Ministry of Finance Japan ( 128.88= 1 as of 31 March 2004)

Most of these bonds are issued in the Euro markets.

Many Japanese issuers are listed on European exchanges.

Number of listed Japanese issuers (as of 19 gJanuary 2004)

Glasgow Edinburgh Belfast

Copenhagen

Dublin

2

Gdansk Hamburg

108

Cork

16

24

Plymouth

London

Amsterdam

5 45

Poznan

Bruxelles

4

Brest

Frankfurt am Main

6 17

Nantes

Praha

LUXEMBOURG Paris

80

München

Bratislava Wien

17

Bern

Lyon Milano Torino Venezia

Ljubljana

Zagreb

Bordeaux

stock

bond

Convergence is an important goal.

©KUROKI

Accounting, Auditing and Disclosure Systems in Japan

int in Po Ma

s

Accounting, auditing and disclosure systems in Japan are essentially equivalent to and consistent with internationally recognized systems. Convergence is an important goal for all market participants to foster confidence and efficiency in global capital markets. In this context, continued efforts towards this goal will be made. Japanese securities issuers have played an active part in the EU markets. There are approximately 75 Japanese issuers with shares listed and at least 180 issuers with bonds listed within the EU. Financial statements prepared in accordance with Japanese GAAP and audited in accordance with Japanese GAAS have been widely accepted by investors in the EU markets as well as foreign investors in Japanese markets. Given these facts, both the EU...