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 Japanese subsidiaries to be audited by an external auditor for their financial statements or reporting-package in order to assure the accuracy and reliability of financial results. However, most companies have no choice but to ask Big 4 audit firms and are forced to incur a large amount of audit fees since there are few professionals, in Japan, being familiar with IFRS and dealing with referred work in English. Therefore, the cost burden of foreign capital companies in Japan tends to be heavy in terms of professional service fees.
Our Advantageous Points
In the course of our audit, procedures will be performed by CPAs having enough experience in IFRS. And then, we proactively provide clients with advice and services to prepare reliable IFRS figures other than normal audit service. Although language spoken and written in English only, we will be able to provide services at the same level compared to Big4 audit firms. In addition, we try to implement audit procedures by a minimum number of staff members, unlike big audit firms that process systematically with many professionals’ involvement. Therefore, we can present reasonable service fees to clients. Please feel free to contact us and ask details of our services if you are annoyed with the expensive audit fee for the subsidiary.