Financial systems and economies around the world are undergoing a major transformation unseen since the Industrial Revolution. In 1997 and 1998, the debt crises in Russia and other countries placed considerable strain on global financial and capital markets, and Japanese companies encountered an extremely severe financial and economic climate. These developments, combined with such accounting system reforms as the adoption of consolidated and mark-to-market accounting, are engendering a change in management awareness. Japanese companies are facing the need to replace a Japanese-style management system exemplified by main banks and cross shareholding with cash-flow-based management emphasizing corporate value. As market economies spread around the globe, Japanese firms will be required to strengthen their international competitiveness. An important issue in this context is the investigation and research of corporate management methods and the development of chief financial officers. What is required are business people with sophisticated knowledge, skills, and ethical principles with regard to financial and management accounting and who are prepared to make logical and prompt decisions.

To achieve these objectives, the Japan Association for Chief Financial Officers intends to actively promote exchanges with related foreign institutions and organizations, to broadly investigate and research the suitable nature of corporate management, and based on such research, to foster CFOs with sophisticated knowledge, skills, and ethical principles. Through these endeavors, the association intends to contribute to the development of Japanese com￢panies and Japan’s economy.

Financial Certification Is the Trend in the World
Strengthening education and training in finance with a view to enhancing expertise in corporate finance and improving corporate financial performance is now the trend of the times in the world. At the same time, issuing qualifications to verify know-how and professional skills in finance and certify financial specialty and the credibility thereof is about to become a global standard.

Japan’s Financial Education Has Lagged Behind
As seen by the activities of IAFEI and IGTA, financial education is growing in earnest around the world. In Japan, on the other hand, financial education has lagged far behind. In Japan’s business community where even the distinction between “accounting” and “finance” is vaguely defined, it is crucial to provide education in corporate strategy for determining how to implement financial strategies to enhance corporate value and what management strategies should be taken to that end. The Japan Association for Chief Financial Officers (JACFO) was launched in October 2000 with the aim of supporting the training and nurturing of the Japanese-style chief financial officer (CFO).

Forming an Alliance with the Global Financial Network
At the same time as its launch, JACFO entered into a partnership with AFP, the largest financial education institution in the United States, with a view to bringing into Japan advanced financial strategies and techniques used in the United States. Thereafter, JACFO became a part of the global financial education network by joining IGTA in 2001 and IAFEI in 2003, among other initiatives.

Introduction of Certification System
Simultaneously with its launch, JACFO introduced the “General CFO Certification”, an MBA finance course. Also in May 2001 JACFO brought CCM, an authoritative U.S. financial certification offered by AFP, into Japan and introduced it as the Global CFO Certification (CCM).” In 2004 it introduced the Standard CFO Certification, an introductory certification for accounting and financial staff of small and medium enterprises, jointly with Kinzai Institute for Financial Affairs, Inc. Then in 2005 JACFO introduced the Professional CFO Certification, which is an advanced course of that. (The Professional CFO Certification systematizes the contents of the Project for Human Resource Development for Regional Finance of the Ministry of Economy, Trade and Industry.)

Promotion of “Finance & Accounting Service Skill Standard”
In 2004 the Ministry of Economy, Trade and Industry formulated the “Finance & Accounting Service Skill Standard.” This standard uses flow charts to display the process of finance and accounting service and comprehensively organizes the skills required for each service by function. As such, this standard is innovative in that it meets finance and accounting needs through reinforcement of establishment of internal control, development and optimal allocation of human resources, and reorganization. In 2004 JACFO was entrusted by the Ministry of Economy, Trade and Industry with the certification project for finance and accounting skills based on the Finance & Accounting Service Skill Standard for the development of highly professional human resources. Following the acceptance of this project, JACFO developed FASS. This standard measures the accuracy of knowledge of routine finance and accounting work and applies to staff engaged in such work, including shared services.

In the future, we intend to increase member companies which support JACFO and pursue the study and research of practical methods and techniques pertaining to corporate finance. At the same time, we plan to welcome highly-motivated financial persons as members and endeavor to train Japanese-style CFOs who are to be charged with the task of improving corporate value.

The Japan Association for Chief Financial Officers undertakes the investigation and research of practical methods for financial management that will enable Japanese companies to increase their international competitiveness in response to changes in the management envi￢ronment. The association consists of a broad range of committees that will actively adopt the counsel of specialists in business, financial, and academic circles. Through a full complement of activities, the association intends to broadly publicize the results of its endeavors. Even as it envisions the prospect of alliances with related foreign institutions, the association will endeavor to establish “global standards” for financial management in Japan.

To develop Japanese-style CFOs who will take leadership positions in Japanese companies, the association plans to offer a variety of CFO accreditation programs and will analyze and carry out surveys on corporate management and finance strategies.

Principal Activities