Message from Founder & Chairman of BDO Sanyu & Co.
The future course of the world economy has increasingly become uncertain due to British exiting from the European Union and a change of policies by the new government of the Unites States established in 2017. Subsequently, volatility in the foreign exchange rates and the economic recession in emerging countries may have a negative impact on corporate earnings. Despite of the Bank of Japan's aggressive negative interest rate policy and rising employment, personal consumption remains stagnant and the GDP growth rate is at a low level. To break through this situation, the new measures based on "work style reform" and "industrial restructuring" were introduced again under the new Abenomics growth strategy, aiming to improve overall economy. The new measures include: setting the maximum limit on overtime to 60 hours per month; improving working conditions of non-regular employees by equal pay for equal work under "work style reform", and productivity improvement by the use of IoT information technology in the fourth industrial revolution (Industry 4.0) under "Industrial restructuring". These measures are expected to have a positive impact on the economy. As to the fourth industrial revolution, the IT environment at corporations built around IoT, big data, Fintech, and blockchain is changing drastically. Examples include an IT environment controlling data from producing of products n to sale of products, IT utilizing big data, and increasing the connectivity between machines. This new industrial revolution cannot be realized by a single company, but the collaboration of corporations beyond nations is essential. Furthermore, many of us are required to shift strategies or to collaborate with each other toward a new globalization.
Under this increasingly complex business world, convergence from the Japanese accounting standards to IFRS (International Financial Reporting Standards) is being driven forward, to standardize financial reporting for the international capital markets. More listed companies are voluntarily adopting IFRS. Furthermore, Japanese audit standards are being amended to conform to the International Standards on Auditing (ISA). From 1996, BDO Sanyu as a Japan member firm of BDO, the fifth largest accounting network in the world has been providing accounting, audit, and tax consulting services utilizing a global standard. In addition, we provide corporate finance services such as integrated reporting and support for corporate reorganizations that are recent hot topics. We are confident our expertise and experience obtained in providing these services will be valuable to corporations expanding overseas as well as middle-sized/venture corporations wishing to list in Japan.
BDO Sanyu since its establishment has supported new listings of middle-sized/venture corporations. Since demand for the new listings are increasing and is an issue of urgency, we continue to support the development of unlisted and promising companies through audits not only in Japan but also in Asia, EU, US, and other markets.
We take on the responsibility as being a reliable audit firm for all the company stakeholders besides the securities market. Aiming to be a top quality audit firm in a domestic audit market, we continuously enhance our internal quality management process, improve morale of our professional staff, and revitalize human resources and the organization. Thoroughly applying the upcoming corporate governance code for audit firms, we, as a reliable audit firm continue to work together for the betterment of the firm and employees.
Founder & Honorary Chairman, BDO Sanyu & Co.