ASBJ 06
Accounting Standard for Statement of Changes in Net Assets
Accounting Standard for Statement of Changes in Net Assets is part of the Japan GAAP framework.
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Conceptual Framework Linkage
The primary statement tracking how Net Assets moved during the period
ASBJ Statement No. 6 establishes the Statement of Changes in Net Assets (株主資本等変動計算書, literally "statement of changes in shareholders' equity, etc.") as ONE of the primary financial statements REQUIRED under J-GAAP – presenting HOW each component of the Net Assets (純資産) section established by ASBJ Statement No. 5 CHANGED during the reporting period, connecting the OPENING and CLOSING Balance Sheet positions with a clear account of what drove the movement.
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Scope
All companies preparing a full set of J-GAAP financial statements
This Statement applies to ALL companies preparing financial statements under J-GAAP, requiring the Statement of Changes in Net Assets as a MANDATORY primary statement alongside the Balance Sheet and Statement of Income.
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Replacing the Old Statement of Appropriation of Retained Earnings
A shift from a single annual appropriation event to continuous, comprehensive tracking
Before this Statement, Japanese practice centred around a SEPARATE "Statement of Appropriation of Retained Earnings" (利益処分計算書) – reflecting the OLDER governance model where dividend and reserve decisions were formally APPROVED as a discrete event at the shareholders' general meeting. As Japan's Companies Act evolved to permit MORE FLEXIBLE, ongoing capital transactions (share issuances, treasury share transactions, interim dividends), the OLD single-event appropriation statement became INADEQUATE – the Statement of Changes in Net Assets REPLACED it with a COMPREHENSIVE, CONTINUOUS presentation covering ALL Net Assets movements during the period, not just the annual profit appropriation decision.
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Structure – Tracking Every Net Assets Component
Opening balance, movements during the period, closing balance – for each of the four parts
The Statement presents, for EACH of the four Net Assets components established by ASBJ Statement No. 5 (Shareholders' Equity, Valuation and Translation Adjustments, Subscription Rights to Shares, and Non-controlling Interests): the OPENING balance at the start of the period, the MOVEMENTS occurring DURING the period, and the resulting CLOSING balance – reconciling directly to the Balance Sheet's Net Assets figures at both dates.
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Detailed Movement Analysis for Shareholders' Equity
Each sub-component's own movement columns
For SHAREHOLDERS' EQUITY specifically, the Statement provides GRANULAR movement detail SEPARATELY for Common Stock, Capital Surplus, Retained Earnings, and Treasury Shares – showing individual line items such as NEW share issuances, DIVIDENDS paid, NET profit for the period (transferred into Retained Earnings), and TREASURY SHARE acquisitions/disposals – giving readers a genuinely TRANSPARENT account of exactly what drove each Shareholders' Equity sub-component's change.
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Aggregate Movement for Other Net Assets Components
Generally a net change, unless material detail is warranted
For Valuation and Translation Adjustments, Subscription Rights to Shares, and Non-controlling Interests, the Statement TYPICALLY presents the NET change during the period as a SINGLE line, rather than the SAME granular, multi-line detail required for Shareholders' Equity – reflecting that these components generally involve FEWER, less frequently occurring transaction TYPES.
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Worked Example – a Shareholders' Equity Movement Schedule
Reconciling opening to closing balances
Example: Retained Earnings movement for the year
A company's Retained Earnings opening balance is ¥3,200,000,000. During the year, it recognises net profit of ¥600,000,000 and pays dividends of ¥180,000,000.
Retained Earnings closing balance = ¥3,200,000,000 + ¥600,000,000 (net profit) − ¥180,000,000 (dividends) = ¥3,620,000,000 – with EACH of these two movements shown as a SEPARATE, clearly labelled line in the Statement of Changes in Net Assets, reconciling directly to the Balance Sheet's Retained Earnings balance at year end.
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Worked Example – Reflecting a Dividend and a Share Issuance
Multiple Shareholders' Equity components moving simultaneously
Example: A new share issuance alongside the annual dividend
During the year, a company issues new shares raising ¥500,000,000 (¥250,000,000 credited to Common Stock, ¥250,000,000 to Capital Surplus), and pays ¥180,000,000 of dividends from Retained Earnings.
The Statement shows: Common Stock INCREASING by ¥250,000,000 (new share issuance); Capital Surplus INCREASING by ¥250,000,000 (new share issuance); and Retained Earnings DECREASING by ¥180,000,000 (dividends) – each Shareholders' Equity sub-component's movement CLEARLY separately identified, rather than presented as one blended total change.
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Disclosure Requirements
What ASBJ Statement No. 6 requires
Opening and closing balances for each Net Assets componentDetailed line-item movements for each Shareholders' Equity sub-componentNet movement for Valuation and Translation Adjustments, Subscription Rights, and Non-controlling Interests
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Critical Judgments
Where judgement matters most
SIGNIFICANT JUDGEMENTS
Appropriate level of disaggregation for movements that don't fit neatly into a single standard line item
SIGNIFICANT ESTIMATES
Generally minimal – this Statement is a presentational standard reflecting amounts already determined under other standards
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Relationship to IAS/IFRS
Comparison – J-GAAP vs IFRS
FeatureJ-GAAP (ASBJ Statement No. 6)IFRS (IAS 1)
Mandatory primary statementYES – Statement of Changes in Net AssetsYES – Statement of Changes in Equity, converged in overall purpose
Level of movement detailGranular for Shareholders' Equity sub-components; aggregate for other Net Assets partsSimilarly granular for share capital/reserves, though specific column structure varies by entity
This is a genuinely CONVERGED area – both frameworks require a comprehensive, continuous statement of equity/net assets movements, reflecting a shared move AWAY from older, single-event profit appropriation-style reporting.
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Statement Mapping
Where every Net Assets movement lands
EventStatement(s) affectedNotes
Any Net Assets component changeSCNA BSTracked in the SCNA, reconciling to the Balance Sheet
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Related Standards
Cross-reference map
StandardConnection
ASBJ Statement No. 5Supplies the four-part Net Assets structure this Statement tracks the movement of
ASBJ Statement No. 1Supplies the treasury share and legal reserve movements commonly presented within this Statement
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Quick-Reference Glossary
Statement of Changes in Net Assets (株主資本等変動計算書)
The primary financial statement presenting the period-over-period movement in each Net Assets component.
Statement of Appropriation of Retained Earnings (利益処分計算書) – legacy term
The former statement presenting a single annual profit appropriation event, replaced by the more comprehensive Statement of Changes in Net Assets.
Financial statement key (Japan GAAP terminology)
BS Balance Sheet (貸借対照表) P&L Statement of Income / Profit and Loss Statement (損益計算書) Net Assets 純資産の部 SCNA Statement of Changes in Net Assets (株主資本等変動計算書) SCF Statement of Cash Flows (キャッシュ・フロー計算書)