Business Accounting Principles issu

Business Accounting Principles issued by the Business Accounting Council (BAC), Accounting Standards issued by the Accounting Standards Board of Japan (ASBJ), and Practical Guidelines issued by the JICPA are deemed to be the generally accepted accounting principles (GAAP) in Japan.
In 2001, the Financial Accounting Standards Foundation (FASF) was established through the concerted efforts of ten leading private-sector entities including the JICPA. The ASBJ was organized under the auspices of the FASF as an independent and private-sector entity to develop accounting standards in Japan. The JICPA not only provides funding to the FASF, but also takes part in setting accounting standards by sending board members to the FASF and the ASBJ. Additionally, many CPAs participate in various technical committees at the ASBJ as technical staff.
The standard setters have been succeeding in narrowing the gap between Japanese standards and International Financial Reporting Standards("IFRSs") in recent years. The financial statements according to the regulations below contain few differences with IFRSs or US GAAP.