Asset valuation and accounting strategy within the Japanese shipping industry c.1876–c.1950

Abstract

The Japanese shipping industry adopted European-style book-keeping in the 1870s. Before 1937, there were few regulations on accounting practices in Japan and we can observe their natural evolution at the Nippon Yusen Kaisha (NYK). NYK, which prospered to become a blue-chip company, developed its accounting techniques in asset valuation exploiting a policy that income and expense from selling securities or vessels should not go directly to the profit and loss account. Asset revaluations were undertaken not to reflect market value but to implement accounting strategy.