US GAAP vs IFRS: Reporting From Your Japan Entity
How to convert Japanese statutory figures into the GAAP your group reports in — and keep the process clean.
Japanese statutory accounting rarely matches the framework your group reports in. Global finance teams need a clean, documented bridge from local books to US GAAP or IFRS.
Start from solid statutory books
Conversion is only as reliable as the underlying records. Clean Japanese-GAAP books make the adjustment process straightforward.
Document every adjustment
Each conversion entry — revenue recognition, leases, accruals — should have a clear workpaper. Documentation is what makes the bridge auditable.
Align to the group calendar
Reporting packages should land on your parent-company timeline, with intercompany balances reconciled before submission.
Choose a framework deliberately
US GAAP and IFRS differ in areas like leases and revenue. Decide early which adjustments matter most for your business and standardize them.