IFRS has been already adopted in many countries in the world, such as France, Germany, Korea, China, and Singapore, etc. and listed entities are required to comply with IFRS naturally. And then, subsidiaries of listed companies adopting IFRS need to prepare Financial Statements based on the same accounting standards as parent company. Therefore, the Japanese subsidiary must close its accounts by converting to IFRS figures and send reporting-package to parent company even though it prepares Financial Results based on J-GAAP.
In the process of consolidation, the parent company may request that Japanese subsidiaries have their financial statements or reporting packages audited by an external auditor to ensure the accuracy and reliability of financial results. However, due to the scarcity of professionals in Japan who are familiar with IFRS and capable of handling referred work in English, most companies have no choice but to engage the services of Big 4 audit firms, which often results in incurring substantial audit fees. As a result, foreign capital companies in Japan bear a heavy cost burden when it comes to professional service fees.
Our Advantageous Points
In the course of our audit, procedures will be performed by CPAs with extensive experience in IFRS. We also offer proactive advice and services to help clients prepare reliable IFRS figures beyond the scope of a normal audit. Although our services are only available in English, we strive to match the level of service provided by Big 4 audit firms. Unlike larger firms, we implement audit procedures with a minimal number of staff members, which allows us to offer reasonable fees to clients. If you are frustrated by the high audit fees charged by other firms for your subsidiary, please don’t hesitate to contact us for more information about our services.