Financial比率分析

Detailed explanation of Financial比率分析 based on official information from 企業会計基準委員会・金融庁. Financial Management

Published: January 12, 2026

Financial Statements in Japan: A Comprehensive Guide to Preparation and Submission

1. Overview

Financial statements are the cornerstone of corporate transparency and accountability in Japan. They provide a structured representation of a company's financial performance, position, and cash flows over a specific period. In Japan, the preparation and disclosure of financial statements are governed by a robust legal and regulatory framework, primarily the Companies Act (Kaisha-hō) and financial instruments regulations. For publicly listed companies, compliance with the Japanese Generally Accepted Accounting Principles (J-GAAP) or, increasingly, International Financial Reporting Standards (IFRS) (for certain eligible companies) is mandatory. These documents are crucial for investors, creditors, regulatory authorities like the Financial Services Agency (FSA), and other stakeholders to make informed economic decisions. Proper financial statement management is not just a legal obligation but a fundamental aspect of sound corporate governance and financial management.

2. Applicable Objects & Scenarios

The requirement to prepare and disclose financial statements applies to all incorporated entities in Japan, including:

  • Kabushiki Kaisha (KK - Stock Companies): Both publicly listed and private.
  • Gōdō Kaisha (GK - Limited Liability Companies).
  • Other corporate forms specified under the Companies Act.

The primary scenarios necessitating the preparation and submission of financial statements are:

  • Annual Reporting: Submission to the annual General Meeting of Shareholders.
  • Regulatory Filing: For certain companies (e.g., large companies, publicly traded companies), filing with the local Legal Affairs Bureau for public record.
  • Disclosure Requirements: For companies listed on financial instruments exchanges (e.g., Tokyo Stock Exchange), periodic disclosure to the public via the EDINET (Electronic Disclosure for Investors' NETwork) system administered by the FSA.
  • Tax Filing: While tax computations have separate rules, financial statements form the starting point for corporate tax returns.
  • Financing Applications: Required when applying for loans or issuing bonds.

3. Core Conclusions

  • Financial statement preparation in Japan is a mandatory, legally defined process with strict deadlines.
  • The applicable accounting standards (J-GAAP or IFRS) depend on the company's type and listing status.
  • The ultimate responsibility for the accuracy of financial statements lies with the company's directors.
  • External audit by a certified public accountant (CPA) is required for most stock companies and all publicly listed companies.
  • Timely and accurate disclosure, especially for public companies via EDINET, is critical for market integrity and investor protection.

4. Procedures & Steps

Step 1: Preparation

  1. Closing the Books: Complete all accounting entries for the fiscal period, including accruals, depreciation, and inventory valuation.
  2. Trial Balance: Prepare an adjusted trial balance to ensure debits equal credits.
  3. Draft Statements: Prepare draft versions of the core statements:
    • Balance Sheet (Taishaku Taishōhyō)
    • Profit and Loss Statement (Son-eki Keisansho)
    • Statement of Changes in Net Assets (Shihon no Hendōhyō)
    • Notes to Financial Statements: Detailed disclosures required by law and accounting standards.
  4. Internal Review: Management and internal accounting teams review the drafts for accuracy and compliance.
  5. External Audit (if required): Submit the draft statements to an independent auditor (CPAJ) for examination. The auditor will issue an audit report.

Step 2: Application & Submission

  1. Board of Directors' Approval: The finalized financial statements must be approved by the company's Board of Directors.
  2. Shareholder Approval: The statements are then presented for approval at the Annual General Meeting of Shareholders (typically within 3 months of the fiscal year-end for most companies).
  3. Legal Filing: Large Companies (as defined by the Companies Act) must file their approved balance sheet and related documents with the Legal Affairs Bureau (Hōmukyoku) of their jurisdiction. This makes them part of the public registry.
  4. EDINET Filing (for Public Companies): Listed companies and certain others must electronically submit their annual securities reports (containing the financial statements) to the FSA via the EDINET system within a set period (e.g., 3 months after fiscal year-end).

Step 3: Review & Confirmation

  1. Regulatory Review: The FSA may review EDINET submissions for compliance with disclosure rules.
  2. Public Inspection: Once filed, documents become publicly accessible—corporate registry documents at the Legal Affairs Bureau and securities reports on the EDINET website.
  3. Company Confirmation: The company should retain official copies of the approved statements and audit report for its records and future reference.

5. Frequently Asked Questions (FAQ)

Q1: What is the difference between J-GAAP and IFRS in Japan? A1: J-GAAP is Japan's domestic set of accounting standards. IFRS are international standards. Some listed companies in Japan can voluntarily adopt IFRS if approved. The two differ in principles and specific treatment of items like revenue recognition and financial instruments. The choice significantly impacts the presented figures.

Q2: Are all companies in Japan required to have their financial statements audited? A2: No. The requirement depends on company size, type, and debt. However, all Kabushiki Kaisha (stock companies) that are not classified as "small companies" under the Companies Act, and all publicly listed companies, are required to undergo a statutory audit by a certified public accountant or audit firm.

Q3: What are the consequences of late filing or non-compliance? A3: Penalties can be severe. For the Companies Act filing, fines may be imposed on directors. For EDINET submissions, the FSA can issue administrative penalties, and the relevant financial exchange may impose sanctions, including delisting. It can also severely damage corporate reputation and investor trust.

Q4: Where can the public access a company's financial statements? A4: For most corporations, filed balance sheets can be requested at the Legal Affairs Bureau. For publicly listed companies, the full annual securities report is available for free on the official EDINET website.

Q5: Can financial statements be prepared in a language other than Japanese? A5: For official filings with Japanese authorities (Legal Affairs Bureau, EDINET), the documents must be in Japanese. Companies may prepare internal or investor relations versions in other languages, but the legally binding version is the Japanese one.

Q6: What is the typical fiscal year-end in Japan? A6: While companies can choose their fiscal year, March 31 is the most common fiscal year-end in Japan, aligning with the national government and tax year.

7. References & Sources

8. Related Topics

  • Corporate Governance in Japan
  • Japan's Audit Requirements for Corporations
  • Understanding J-GAAP vs. IFRS
  • Corporate Tax Filing in Japan
  • EDINET Submission Guidelines
  • Roles of the Board of Directors and Corporate Auditors (Kansayaku) in Japan

6. Risks & Compliance

Important Notes & Disclaimer:

  • This guide provides general information and does not constitute legal, accounting, or financial advice. Companies must consult with qualified professionals (CPAs, attorneys, tax accountants) for their specific circumstances.
  • Regulations, particularly concerning accounting standards (IFRS adoption criteria) and filing thresholds under the Companies Act, are subject to change. Always verify the latest rules with the official sources listed above.
  • The responsibility for the accuracy and completeness of financial statements rests entirely with the company's representative directors. Errors, omissions, or fraudulent reporting can lead to civil liability, regulatory penalties, and criminal prosecution.
  • Specific numerical thresholds for defining "Large Companies" or "Small Companies" under the Companies Act should be verified with the latest official texts or a legal professional, as they are based on capital, debt, and employee numbers.
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