Scope of consolidation

  IFRS Japanese GAAP US GAAP
  A subisidiary has to be consolidated if the parent has the power to govern the financial and operating policies of an entity.
There is no specific guidance on the scope of exceptions determined based on such as factors as sales or assets.
Similar to IFRS, a subisidiary has to be consolidated if the parent has the power to govern the decision making body.
Under J-GAAP, a parent is permitted to exclude immaterial subsidiaries from the scope of consolidation.
A subsidiary has to be consolidated if the parentowns, directly or indirectly, more than 50% of the outstanding voting shares.
There is no specific guidance on the scope of exceptions determined based on such as factors as sales or assets.
Basis for consolidation