ASBJ and IASB Reaffirm their Ongoing Cooperation in Achieving Convergence in Accounting Standards
07 and 08 September 2009, London
Sir David Tweedie, Chairman, IASB www.iasb.org
Ikuo Nishikawa, Chairman, ASBJ www.asb.or.jp
The Accounting Standards Board of Japan (ASBJ) and the International Accounting Standards Board (IASB) have held their 10th meeting to accelerate convergence of Japanese generally accepted accounting principles (GAAP) and International Financial Reporting Standards (IFRSs).
As part of the meeting, representatives of the IASB provided an update on their ongoing project work, in particular on those projects that form part of the convergence programme between the IASB and the US Financial Accounting Standards Board (FASB) and on the measures that are being undertaken by the IASB in response to the financial crisis.
Representatives of the ASBJ reported that good progress is being made towards convergence of IFRSs and Japanese GAAP. As outlined in the Tokyo Agreement these efforts extend to all projects on the IASB’s agenda. Representatives of the boards also exchanged views on the recent IASB exposure draft Financial Instruments: Classification and Measurement and the following important items, including cross-cutting issues among IASB projects.
Other comprehensive income, and recycling/non-recycling: Cross-cutting issues among Financial statement presentation, Financial instruments (Classification and measurement), and Post-employment benefits
Measurement of liabilities: Cross-cutting issues among Financial liabilities and Non-Financial liabilities (IAS37) , including own credit risk
In addition, the representatives of the ASBJ provided an overview of the Interim Report Opinion on Application of International Financial Reporting Standards in Japan issued by the Business Accounting Council (BAC), an advisory body to the Commissioner of the Japan Financial Services Agency (FSA) in June this year.
The roadmap permits early adoption of IFRSs by listed companies for fiscal years beginning 1 April 2009 and proposes mandatory adoption of IFRSs from 2015 or 2016, with a final decision on the mandatory element being taken around 2012.
In this context, representatives of the boards also discussed how to address issues relating to the implementation of IFRSs in Japan.
As a result of these discussions, the IASB expressed its willingness to support Japanese constituents and the ASBJ in their work in addressing implementation issues.
Representatives of both boards believe that the ASBJ’s and IASB’s ongoing work towards convergence between Japanese GAAP and IFRSs is essential for a successful adoption of IFRSs. The ASBJ’s continuing participation in the IASB’s standard-setting process will also contribute to the future development of high-quality accounting standards in the medium and long term.
Commenting on the meeting, Ikuo Nishikawa, Chairman of the ASBJ, said:
" The IASB and the ASBJ again had a useful meeting that included a productive discussion on cross-cutting issues. The ASBJ continues to participate actively in the international standard-setting process, including this regular meeting with the IASB. This is also consistent with the Interim Report issued by the Business Accounting Council, which sets out a roadmap towards the application of IFRSs in Japan and recommends that the ASBJ continues and accelerates the convergence of accounting standards ".
Sir David Tweedie, Chairman of the IASB, said:
" The recent approval of a roadmap for the adoption of IFRSs in Japan by the Business Accounting Council of Japan Financial Services Agency has been a milestone in our efforts to establish IFRSs as the single set of generally accepted accounting principles around the world. The joint efforts of both boards to achieve convergence as agreed in the Tokyo Agreement have made an important contribution to making this development possible. The ongoing cooperation of the two boards will also contribute to a smooth adoption of IFRSs in Japan and to creating high quality IFRSs in the future ".
