🇯🇵 Tokyo Takeaways: Insights from the 2025 IFRS Conference
The 2025 IFRS Conference in Tokyo was a hit, with over 500 attendees diving into integrated thinking and reporting. Key highlights included the growing adoption of the Integrated Reporting Framework and the emphasis on high-quality human capital disclosures.
Key Points
- •📈 Adoption Surge: Nearly 1,200 Japanese companies are now using the Integrated Reporting Framework.
- •👥 Investor Insight: Over 70% of investors use integrated reports for company engagement.
- •🌍 Global Standards: Alignment between global and local accounting standards is increasing.
- •💼 Human Capital Focus: Japan prioritizes high-quality human capital disclosures in reports.
- •💡 Efficiency Drive: Emphasis on avoiding boilerplate disclosures and focusing on investor needs.
🏢 Integrated Reporting Gains Traction
The enthusiasm for the Integrated Reporting Framework is palpable, with almost 1,200 Japanese companies on board. This approach helps companies tell their value creation stories more effectively. According to recent research, over 70% of investors use these reports to engage with companies. The quality of these reports is also on the rise, thanks to increased interest from regulators and investors.
🌱 Stakeholder Support for Standards
Regulators, companies, and investors are all singing the praises of quality, consistency, and comparability in financial reporting. As global and local standards align, integrated thinking becomes even more relevant. This approach helps break down internal silos, providing context and enhancing accountability.
👥 Human Capital Disclosures in the Spotlight
Japan’s regulators and investors are particularly keen on high-quality human capital disclosures. These are seen as crucial for identifying value drivers like productivity, diversity, and innovation. The Financial Services Agency (FSA) has incorporated 'human capital' into the Integrated Reporting Framework to encourage better management and disclosures.
⚖️ Focusing on What Matters
Governance is a key feature of the Integrated Reporting Framework, as well as IFRS S1 and S2. Companies and investors agree that emphasizing governance can help avoid boilerplate disclosures. Instead, the focus should be on what truly matters to investors.