2004 Fiscal Year Final Research Report Summary
Corporate Governance and the Significance of the Inventory
| Project/Area Number |
15530307
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| Research Category |
Grant-in-Aid for Scientific Research (C)
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| Allocation Type | Single-year Grants |
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| Section | 一般 |
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| Research Field |
Accounting
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| Research Institution | NIHON UNIVERSITY |
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Principal Investigator |
IGARASHI Kunimasa Nihon University, College of Commerce, Professor, 商学部, 教授 (90113993)
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| Project Period (FY) |
2003 – 2004
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| Keywords | CORPORATE GOVERNANCE / INVENTORY / PROPERTY QUANTITY ACCOUNTING / PROPERTY VALUE ACCOUNTING / BALANCE SHEET / PROPERTY STOCK INFORMATION / ASSET LIABILITY MANAGEMENT |
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| Research Abstract |
Recently corporate governance has been discussed on from various viewpoints. OECD suggested principles of corporate governance in 1999 and revised in 2002. EU also discussed on corporate governance ; the High Level Group of Company Law Experts, A Modern Regulatory Framework for Company Law in Europe, and Modernizing Company Law and Enhancing Corporate Governance in the European Union.
Corporate governance principles of OECD and EU Commission have close relation to an accounting field. Chief points of them are a preparation for relevant accounting information to stakeholders and effective property control of a company.
In the former point, the inventory I is similar to the balance sheet but not the same. The inventory shows detail data of physical quantity in each property and its amount through physical identification.. On the other hand, the balance sheet presents summary of only its amount,. As a result, the inventory has an original function that is different from the balance sheet. The inventory shows physical quantity of each property as well as different valuations of assets and liabilities from them of the balance sheet. These data are relevant to various decision makings for stakeholders.
In the latter point, on the other hand, the inventory has a function of property control. As it reviews all assets and liabilities based on physical identification, we can recognize whether each property in the books is really existing or not. Therefore, an administrator of each property also has an function of accountability for reasonable property control. Further management can use all properties more effectively through this inventory.
In summary, the inventory has several important functions in relation between corporate governance and accounting Therefore, we can conclude that the preparation for the inventory has to be required again in Japan as well as continental countries.
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