Accounting Accounting Regulation Regulation
•The Companies Act, accounting pronouncements,
and stock exchange rules comprise accounting
regulation
•Similar to the U.S., and unlike Germany and
Japan tax rules do not significantly influence Japan, tax rules do not significantly influence
financial reporting
•Standard-setters have historically taken a
principles-based approach using a statement of
principles as a conceptual framework
•H t hi t i ll h d t SEC t Has not historically had a strong, SEC type
agency, but recent scandals have led to increased
regulation
6