Responding to corporate financial statements and audits Flexible response policy confirmation The Financial Services Agency, etc. April 4 4:07
Due to the spread of the new coronavirus, the company's sales are expected to fall sharply, and it is anticipated that the outlook for the new fiscal year, which has just begun, will be elusive. The Financial Services Agency and Keidanren have begun examining measures to flexibly enforce the rules on corporate accounts, etc., and have confirmed a policy of responding flexibly, assuming support for the government's economic measures that will be compiled soon.
Many companies close their accounts at the end of last month, and the results will be compiled and audited by a certified public accountant.
However, the FSA consulted with relevant organizations such as the Japan Institute of Certified Public Accountants and Keidanren on March 3 because many companies have had a significant decline in sales or the prospects for their business due to the spread of the new virus. And set up a meeting to discuss settlement and auditing responses.
If a company is performing poorly and the value of its assets is greatly reduced, accounting rules generally require that a loss be recorded.
The three days of discussions confirmed that the government was flexible in assessing the value of assets, for example, assuming that the government would take measures to support the government's economic measures, which would improve the balance of payments.
For example, stores where sales have dropped significantly or factories whose occupancy rates have declined due to sluggish demand may not record a loss if it is judged that economic measures can improve them.
The FSA hopes to consult with related organizations again about the specific way of operation.