North Eastern Japan Earthquake
Message from Shozo Yamazaki, Chairman and President of JICPA
March 23, 2011
We are very grateful to all of our friends for the kind consideration for our members and people in Japan during the recent disaster.
A massive earthquake of M 9.0 struck off shore from North Eastern Japan on March 11, 2011, just after 14:30. We felt a big shaking in Tokyo. Almost all the trains stopped, and many people could not go home that night. But, otherwise, in Tokyo, there were no significant damages.
The coastline in North Eastern Japan (mainly agricultural and fishery area with no large cities) suffered significant damages due to tsunami. There were even some towns most of which were washed away. It has been more than 10 days since the earthquake, with reports of over 9,000 people dead and 13,000 missing. In addition, back-up generators of a nuclear power plant, located 200km north of Tokyo were hit by the tsunami, and although the nuclear reactors were immediately shut down without any problem, the cooling system has not been working since then. As such, the Self-Defense Forces and Fire Department have been spraying water on the reactors to lower additional risk. Since nuclear reactors are stopped, there would be no further significant disaster.
We do not have many members in the affected areas. We succeeded in reaching out to most of them, but for some members, we have not yet confirmed their safety. This may be due to the fact the telephone lines and electricity have not been restored in most of the areas and they are expected to be staying in the evacuation sites. We are assisting our members who have suffered damages.
No damage was caused to our (JICPA) office in Tokyo. However, all committee activities were suspended for a week. Beginning March 22, all of our operations returned to the normal state of business. Due to power shortages, residential areas surrounding Tokyo are subjected to rolling blackouts, and this causes some problems for our staff when commuting. However, there has been no power cut in central Tokyo, where JICPA is located.
Most Japanese companies have their fiscal year ending on March 31, and it is expected that some companies may pose problems for audits. There may not be so many companies that have been significantly damaged, but there would be impairment in factories and distribution facilities located in these areas. The effects of rolling blackouts in the vicinity of Tokyo are also not insignificant. We plan to issue a guideline on expected auditing issues resulting from this disaster.
Please rest assured that we are carrying out our activities without significant problems.
Despite all the difficulties being experienced by us in Japan, we are determined to overcome these tragic events, and do all we can to move our country forward.
Shozo Yamazaki
Chairman and President
The Japanese Institute of Certified Public Accountants
