“Japan Revitalization Strategy”, which was launched as the third arrow of the growth strategy dubbed Abenomics, has been making steady progress since it was endorsed by the Cabinet in June 2013, overcoming the temporary economic downturn caused by the consumption tax increase. The new growth strategy announced this June emphasizes the importance of building a strong economy that can succeed in the competitive global market, with more focus placed on growth-oriented measures. With this background, and for preparing for the hosting of the Tokyo Olympics 2020, Japan is facing a challenge both internally and internationally to show its steps towards true globalization.
During the past year, Japanese companies have constantly been asked their awareness of the importance of various initiatives to gain high recognition from overseas investors, which include measures to enhance corporate value and sustainability, to improve reliability of disclosure information and to maintain dialogue with corporate financiers. The launch of a new JPX Nikkei Index 400, the implementation of upgraded EDINET, the progress seen in the discussion surrounding International Financial Reporting Standards (IFRS), the application of Standard to Address Risks of Fraud in an Audit, and the establishment and enforcement of Japan’s Stewardship Code, were examples of such trend that are targeted at both domestic and international stakeholders. The trend is gaining even larger momentum combined with the global movement towards the accounting and audit reform.
Considering such change, in July 2013, the Japanese Institute of Certified Public Accountants set a new tag line called "Certified Public Accountant - Engage in the Public Interest”. In January 2014, PwC also globally defined the purpose of PwC Network as "Build trust in society and solve important problems". We, PricewaterhouseCoopers Aarata, believe that our duties are to play a valuable role in corporate management in Japan by gaining trust from the market, drawing fully upon the strength of the expertise and experience of the PwC Network that branched out into 157 countries, as well as advisory and tax specialists in the group.
In response to changes in our clients’ business environment, we offer services that cover IFRS application, fraud risk, implementation of new COSO, as well as other services that support our clients’ globalization activities. As the socially significant initiatives envisioning the next generation, we are developing new services and frameworks in the field of renewable energy and cloud computing, and are supporting “integrated reporting” approach to enhance sustainable corporate value. These efforts are aimed at building a platform for companies and investors, which will support their new endeavors and smooth communication.
“Japan Revitalization Strategy (revised in 2014)” published in June, advocates the improvement of the quality of audit and the recognition of certified public accountant qualification as one of the new measures to be taken by the government. We at PricewaterhouseCoopers Aarata are keenly aware of our responsibility and the expectation from the country, and are fully committed to make utmost efforts to bring value and to keep being a trusted partner for the corporate stakeholders.
July 1, 2014