Frequently Asked Questions

What accounting standards are used in Japan?

In Japan, listed companies generally apply accounting standards that are relatively close to international standards, while many small companies use accounting practices designed for small and medium-sized businesses.

As a result, financial statements for small companies in Japan are often simpler than those of listed companies, and some types of allowances and provisions are less commonly seen.

For foreign entrepreneurs, understanding these differences is an important part of accounting in Japan for small businesses.

companies use accounting standards that are almost international, most small companies use accounting standards for small companies. Therefore, it is rare to see allowances and provisions in a small company’s financial statement.