ASBJ 38
Partial Amendments to Accounting Standard for the Preparation of Semi-annual Consolidated Financial Statements
Partial Amendments to Accounting Standard for the Preparation of Semi-annual Consolidated Financial Statements is part of the Japan GAAP framework.
Recency Note (October 2025)
RECENCY NOTE: Issued October 16, 2025 alongside ASBJ Statement No. 37 (Interim Financial Reporting), No. 39, and No. 40 – details should be cross-checked against ASBJ's current published materials.
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Conceptual Framework Linkage
Consolidation-specific mechanics for interim reporting purposes
ASBJ Statement No. 38 addresses SPECIFIC procedural questions that arise when PREPARING CONSOLIDATED interim (semi-annual) financial statements – going BEYOND the GENERAL interim reporting principles set out in ASBJ Statement No. 37 (see the companion poster) to address the ADDITIONAL complexity of combining a GROUP of entities' interim-period data.
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Scope – Consolidation-Specific Interim Mechanics
Groups preparing consolidated interim financial statements
This Statement applies to PARENT companies preparing CONSOLIDATED interim financial statements, addressing PROCEDURAL questions SPECIFIC to combining subsidiaries' interim-period financial data WITHIN the group's own interim report.
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Why Consolidated Interim Reporting Needs Its Own Guidance
Consolidation adds genuine procedural complexity beyond standalone interim reporting
PREPARING a SINGLE entity's OWN interim report is RELATIVELY straightforward – condense the statements, apply CONSISTENT policies, assess MATERIALITY for the shorter period. CONSOLIDATING a GROUP's interim figures adds GENUINE additional complexity: SUBSIDIARIES may have their OWN interim reporting cycles, intercompany ELIMINATIONS must still be performed at the INTERIM date, and NON-CONTROLLING INTERESTS must still be correctly ALLOCATED – all WITHIN the CONDENSED, time-pressured context of interim reporting. This Statement provides the SPECIFIC procedural guidance addressing THESE consolidation-specific questions.
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Subsidiary Interim Data Alignment
Ensuring subsidiary data is genuinely comparable at the interim date
CONSISTENT with the GENERAL fiscal year-end alignment principle established under ASBJ Statement No. 22 (Consolidated Financial Statements – see the companion poster), this Statement addresses HOW subsidiaries' OWN interim-period data should be ALIGNED and INCORPORATED into the GROUP's consolidated interim figures, ensuring genuinely COMPARABLE, CONSISTENT information across the CONSOLIDATED group at the interim reporting date.
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Coordination With ASBJ Statement No. 37
A companion piece within the broader reform package
This Statement was issued ON THE SAME DATE as ASBJ Statement No. 37 (renaming the general framework from "Semi-annual" to "Interim" Financial Reporting), No. 39 (consolidated cash flow statement amendments), and No. 40 (tax effect accounting amendments) – TOGETHER forming a genuinely COORDINATED reform package addressing DIFFERENT facets of the SAME underlying interim reporting transition.
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Worked Example – Consolidating Subsidiary Interim Data
Aligning a subsidiary's interim figures with the parent's reporting date
Example: A domestic subsidiary's interim consolidation
A parent company preparing its consolidated interim report needs to incorporate a wholly-owned domestic subsidiary's own interim-period results, with intercompany sales during the period requiring elimination.
The parent INCORPORATES the subsidiary's interim data, ELIMINATING intercompany sales and any UNREALISED profit remaining in inventory at the interim date – CONSISTENT with the same GENERAL consolidation principles applied ANNUALLY (per ASBJ Statement No. 22), but APPLIED within the CONDENSED, interim reporting timeframe this Statement addresses.
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Disclosure Requirements
What ASBJ Statement No. 38 requires
Scope of consolidation for interim reporting purposes Basis for aligning subsidiary interim-period data with the group's reporting date
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Critical Judgments & Estimates
Where judgement matters most
SIGNIFICANT JUDGEMENTS
Appropriate alignment of subsidiary interim-period data with the parent's reporting date
SIGNIFICANT ESTIMATES
Interim-period intercompany elimination estimates where precise data is not yet finalised
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Relationship to IAS/IFRS
A procedural refinement, not a substantive divergence point
IAS 34 addresses consolidated interim reporting through the SAME general principles applied to standalone interim reporting, WITHOUT a SEPARATE, dedicated standard for consolidation-specific interim mechanics – J-GAAP's CHOICE to address this through a DEDICATED companion Statement reflects its GENERAL preference for detailed, PRACTICAL procedural guidance, RATHER than a substantive divergence in the UNDERLYING consolidation principles themselves.
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Statement Mapping
Where every consolidated interim event lands
Event Statement(s) affected Notes
Consolidated interim statement preparation All condensed consolidated statements Coordinated with ASBJ Statement No. 37
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Related Standards
Cross-reference map
Standard Connection
ASBJ Statement No. 37 The general interim reporting framework this Statement supplements for consolidation purposes
ASBJ Statement No. 22 Supplies the general consolidation principles this Statement adapts for interim reporting
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Quick-Reference Glossary
Consolidated interim financial statements
A group's condensed financial statements for an interim period, incorporating subsidiaries' own interim-period data with intercompany eliminations applied.
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)