Japan eyes overhauling treatment of goodwill to spur startup activity

Accounting rule change would eliminate key difference with practice overseas

20250526N yen note

Japanese companies amortize goodwill from an acquisition on a regular basis, which cuts into their reported profits. (Photo by Akira Kodaka)

HIROSHI ASAHINA

TOKYO -- Japan is considering changes to accounting rules that would ease the burden associated with goodwill in acquisitions, as Tokyo aims to encourage the growth of startups.

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