Japan accounting standards have always been of the highest level. When Japan began to be known as a to investment opportunity, their Japanese accounting standards were patterned to be acceptable under international standards of accounting. It was a good way to pave more investment into the country because foreign investors could relate to a system they were familiar with, even if the language was a problem.
In August of this year, the ASBJ or Accounting Standards Board of Japan began a process of once more updating their accounting principles to conform to the Financial Accounting Standards Board or FASB. The aim was to converge with the US standards under the US GAAP or generally accepted accounting principles. In short, it was a 3-way process between the accounting standards of the FASB, Japan, and GAAP.
This is to prepare joint projects to fall under the same accounting practices and make any investment or business dealing between the 2 countries a lot more feasible. Keep in mind that respective countries require accounting reports and having the same basis would mean preparing just one report instead of two.
In simpler terms, this means that an American can travel to Japan, look for investment or business ventures, or even a job. If he has worked in the US before, then he won’t be floundering with the accounting principles in Japan. It will be similar to what he is used although written in Japanese. Luckily, many Japanese accounting firms have recognized the need for bilingual accounting and offer this as part of their services.