II. Advisory Services

At our office, we provide advice on internal control documentation methods, documentation work, evaluation tests of internal control functions after documentation, and compliance with the J-SOX law (company-wide control, business control test). Experienced staff who have performed US SOX law compliance work and J-SOX law compliance work will proceed with the work while giving appropriate advice.

Regarding International Financial Reporting Standards (IFRS), we support the transition of conversion from US GAAP to IFRS for Japanese companies in the United States.

We provide consulting services related to M & A of U.S. companies, examine the contents of financial statements of mergers and acquisitions, verify the validity of accounting treatment, verify the existence of assets, liabilities, and capital accounts, verify past PL. We provide financial due diligence services such as examining the feasibility of profit planning.

It is very common for locally established venture companies to grant stock options to employees, but recently, there have been an increasing number of cases where employees of US subsidiaries are granted stock options at the Japanese headquarters. For US accounting purposes, the accounting treatment for stock options is described in ASC 718. Under US GAAP, stock-based compensation must be expensed. It is, in principle, measured on the basis of “fair value on the date of grant of Equity instruments” and the costs are recognized as costs over the period in which the employee must provide work as a condition of compensation. Our office provides cost recognition calculation, advice and consultation on items to be disclosed in financial statements, and issues related to taxation when individual employees exercise their options (such as taxation issues by ISO and NSO).