Notice of RetractionConvergence of Japanese accounting standards with International Financial Reporting Standards

Notice of Retraction

After careful and considered review of the content of this paper by a duly constituted expert committee, this paper has been found to be in violation of IEEE´s Publication Principles.

We hereby retract the content of this paper. Reasonable effort should be made to remove all past references to this paper.

The presenting author of this paper has the option to appeal this decision by contacting TPII@ieee.org.

In this paper we give an overview of the efforts exerted by the Financial Services Agency of Japan (FSAJ), to converge (harmonize) Japanese accounting standards with International Financial Reporting Standards (IFRS). We also reviewed the forces, which motivated the financial services agency of Japan, to converge its accounting standards with IFRS. This convergence will not only lend a hand in integration of Japanese capital market with international market, but will also provide support to Japanese economy, in terms of motivating domestic and foreign investors to invest their financial resources in capital market. Moreover, it will also help Japanese companies to procure capital from international capital market, and will reduce its cost, in terms of preparing less number of financial statements. The complicated process of convergence may take long time, but if implemented properly, it will increase the equity financing, as well as participation of shareholders, and will ultimately strengthen the corporate governance practices in the country.