International Financial Reporting Standards (IFRS) Translation

Arc Communications has on hand a large number of translators with abundant experience in the field of finance including USCPA license holders and those with specialized knowledge in the financial accounting field or in IFRS-related translations, enabling the provision of high quality translations. Past translations include the following.

• Numerous IFRS related translations for auditing firms
• Financial materials for global companies
• Accounting standard manuals for foreign-affiliated companies
• Numerous other accomplishments

IFRS Case Examples

English to Japanese Translation of Q&As related to IFRS for a Leading Auditing Firm

The collection of Q&As included those related to IFRS and their interpretation. The content was highly sophisticated and required specialized knowledge for translation. Prior to executing the translation, Arc Communications called upon its translators specializing in the IFRS field to participate in trial translations through which 10 translators were selected. The 500,000 word translation project was completed and delivered in about three months.

English to Japanese Translation of an IFRS Information Magazine

Arc Communications carries out the English to Japanese translation of an IFRS information magazine (between 2 and 16 pages) issued several times a month by a leading auditing firm. It is an informational magazine that includes many hot topics, including the latest information on IFRS. The same translator handles the translations each time.

Japanese to English Translation of an IFRS Newsletter

Arc Communications carries out the Japanese to English translation of an IFRS-related newsletter. We utilize original translation tools to efficiently make use of a glossary and past newsletters while carrying out the translations.

What is IFRS?

IFRS stands for International Financial Reporting Standards, parts of which are also known by its older name of International Accounting Standards. The pronunciation of the name has not yet been firmly established and it is sometimes called EYE-fers, IFF-ers or I-F-R-S. The standards are jointly written by the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) and are fundamentally different from Japanese accounting standards. Examples include the following.

• Rule-based approach (Japan) vs. principles-based approach (IFRS)
• Emphasis on net income (Japan) vs. emphasis on comprehensive income (IFRS)
• Revenue-expense approach (Japan) vs. asset-liability approach (IFRS)

There are many other differences, such as in amortization of goodwill, the declaration of gain on disposal of subsidiary shares and one-time depreciation of retirement allowance payments. Early preparation to respond to the possible adoption of IFRS is thought necessary.

International Financial Reporting Standards (IFRS) were adopted as the unified accounting standard within the European Union starting in 2005. In the United States, the movement towards adoption of IFRS is gaining strength, with the Securities and Exchange Commission (SEC) proposing a Roadmap in August 2008 for the gradual and partial adoption of IFRS by companies in the US beginning 2014.

Meanwhile, the Nippon Keidanren, The Japanese Institute of Certified Public Accountants and others in Japan began reviews towards convergence with IFRS. In 2009, the possibility of the obligatory application of IFRS towards listed companies was finally expressed in an interim report by the Financial Services Agency’s Business Accounting Council.
Going forward, it is thought that there will be a greater increase in surveys related to a transition to a financial reporting system based on IFRS as well as needs for building related frameworks.

The adoption of IFRS will have major benefits for companies that conduct business and execute financing on a global scale. However, the translation of related materials will necessitate deep, specialized knowledge and experience.

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