Accounting standards board of japan (ASBJ)

American Financial Accounting Benchmark Review Conference (FASB)

United States Securities Access Commission

European International Accounting Standards Review Conference (IASB)

Note that IFRS is an abbreviation of international accounting standards, not an accounting standard-setting institution.

Besides, your question. . . The scope is too wide, so I will talk about the most influential points within my knowledge.

① Operating income (income)

In both Japan and China, sales can be confirmed after the goods are shipped (after the risk leaves the country), but IFRS requires that sales can only be confirmed after the goods reach the customer (the risk is completely transferred to the customer). This may lead to a significant decline in turnover when IFRS are first adopted.

② R&D expenses

Both China and Japan have preferential tax measures, so R&D expenses are included in the current cost. However, IFRS requires that R&D achievements must be included in intangible assets under certain conditions (capitalization 6 condition), and depreciation should be accrued according to the possible service life of assets. This may lead to an increase in management costs and make asset management more difficult in the future.

③ Fixed assets

China adopts the straight-line depreciation method, and the residual value is zero (the new accounting standards for business enterprises in 2006), which is close to the requirements of IFRS, while Japan basically adopts the special proportional depreciation method, and the residual value is 5% of the purchase price. If IFRS is adopted, it may be required to change to the straight-line method, which will increase the depreciation cost of Japanese enterprises in the future, and the separation from Japanese tax law will increase the management cost. The impact is very great. Similarly, the depreciation period is also one of the key points.

④ lease

China and Japan are divided into financial leasing and operating leasing (influenced by American accounting system). However, IFRS requires people who have the right to use assets, that is, those who have paid the rent and have the right to use their own assets, which will lead to a sharp increase in interest-bearing liabilities and a serious blow to the balance sheet, but it is still under discussion.

⑤ Impairment of assets, goodwill and securities.

China, Japan and the United States all stipulate that assets can be recovered once they are impaired, but IFRS stipulates that assets can be recovered if certain conditions are met. But the specific operation is very troublesome.

There are many others. . . I am not very proficient in financial instruments, reserves, asset-liability law, etc. If I write a paper, I can consider the topic I mentioned.

You can ask me if you don't understand.