Printer Friendly

Auditors asked to treat regional banks differently.

TOKYO, Aug. 26 Kyodo

The Japanese Institute of Certified Public Accountants (JICPA) asked auditing firms in a meeting Tuesday to treat regional banks differently from major banks when assessing deferred tax assets or future tax credits.

''The government policy toward regional banks on bad debt problems is different from that for major banks. So (accounting) treatment must be different as well,'' JICPA President Akio Okuyama told reporters after the meeting.

Okuyama's comment came amid growing criticism that banks are padding their capital by calculating deferred tax assets as capital to an excessive degree.

The criticism emerged after Resona Bank, the core unit of Resona Holdings Inc., said in May that its capital adequacy ratio had plunged to 2.07% as of March 31, below the 4% required for banks operating domestically, after its auditors refused to recognize some of the deferred tax assets counted by the bank as capital.

Okuyama said regional banks should be treated differently from major banks because their borrowers are mostly small and midsize companies and thus disclose less corporate financial data.
COPYRIGHT 2003 Kyodo News International, Inc.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2003 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Japan Weekly Monitor
Date:Sep 2, 2003
Words:176
Previous Article:Aeon, Uny to compete with Ito-Yokado's vegetable sale campaign.
Next Article:Mitsui Mining to restructure as IRCJ subsidiary.


Related Articles
Audit regulations not the problem. (NW Journal).
Pay our farmers the money you owe them; AM calls for end to Assembly subsidy delays.
Ashikaga Bank's auditor defends results of last March.
Top accountant defends Ashikaga Bank auditor over tax assets.
Tochigi governor sued over investment in Ashikaga Bank.

Terms of use | Privacy policy | Copyright © 2019 Farlex, Inc. | Feedback | For webmasters