Institutions and accounting standard transformation: Observations from Japan

Abstract

This paper describes the transformation of Japan's accounting standards over the past 2 decades and the driving forces behind this transformation. It also analyzes the current state of Japan's accounting standards, which are characterized by the dichotomy of accounting systems inherited from the country's political, economic and legal institutions. The discussion in this paper emphasizes that a single set of accounting standards is not always effective for every entity. © 2014.