The accounting rules have been set out in the past 50

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Unformatted text preview: ion and, as such, conservatively biased. Moreover, professional accounting standards play only a residual role and it is only recently that the accounting profession has started to assume a significant profile in socio-economic terms. The most important instrument regulating accounting is the 1942 Civil Code, as amended in 1991 by the adoption of the Fourth and Seventh European Directives. The Commissione Nazionale per le Società e la Borsa (CONSOB – National Commission for Companies and the Stock Exchange) was set up to monitor quoted companies. 31 Japan Japan as an accounting jurisdiction is characterized by the dominance of the state. The accounting rules have been set out in the past 50 years as statute law with an implicit objective that accounting should contribute to the growth of the national economy. Until very recently, the accounting profession had played a minor role in shaping accounting practices. Changes, however, seem to be taking place currently with a shift toward making financial reporting more investor and creditor oriented and...
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