Japanese companies face EU exclusion
Japanese companies with EU listing face shut out if rules are not 'equivalent'
The European Union may shut Japanese companies out of its capital markets
owing to difficulties in harmonising accounting standards with EU rules in time
to meet a Brussels deadline.
Japan has been working to align its accounting standards with those followed
by the EU since 2005, after Brussels applied pressure on the country to fall in
line with international rules.
But Japan’s regulator, the
Agency, said that Brussels requested additional changes, which would require
big recalculations, the FT reported.
Japanese companies will essentially not be able to use Japanese GAAP for EU
listings until the EU recognises Japan’s rules as ‘equivalent’.
Japanese regulators said they have been given until July next year to
convince the EU that Tokyo’s principles are in line with EU criteria.