Representatives of both boards believe that the IASB’s and the ASBJ’s ongoing work towards convergence of Japanese GAAP and IFRSs is essential for the successful adoption of IFRSs in Japan. The meeting follows the G20 mandate to complete convergence of global accounting standards.
The International Accounting Standards Board (IASB) and the Accounting Standards Board of Japan (ASBJ) have held their eleventh meeting to review preparations for the convergence with and intended adoption of IFRSs in Japan. Led by Ikuo Nishikawa, Chairman of the ASBJ, and Sir David Tweedie, Chairman of the IASB, the meeting took place on 27 and 28 April 2010 in Tokyo.
The IASB and the ASBJ have accelerated their work towards convergence of International Financial Reporting Standards (IFRSs) currently in effect and Japanese generally accepted accounting principles (GAAP) by June 2011, as described by their Memorandum of Understanding (known as the Tokyo Agreement) and consistent with requests by the Group of 20 Leaders (G20) to complete convergence of global accounting standards by this date.
In December 2009, the Japanese Financial Services Agency (FSA) revised the ordinances to allow Japanese listed companies meeting certain criteria to prepare their consolidated financial statements in accordance with IFRSs from fiscal years ended 31 March 2010. In the light of that decision, the ASBJ is working with its constituents to address interpretative and practical issues relating to the voluntary adoption of IFRSs in Japan. At the meeting with the IASB, representatives of the ASBJ proposed its solutions on those issues and representatives of the boards exchanged views. With a view to promoting the voluntary adoption of IFRSs in Japan, the boards reaffirmed that the IASB will continue to support the ASBJ’s efforts.
Representatives of both boards believe that the ASBJ’s continuing participation in the IASB’s standard-setting process, including the above discussions, contributes to the development of a single set of high quality global accounting standards. They also believe the IASB’s and the ASBJ’s ongoing work towards convergence of Japanese GAAP and IFRSs is essential for the successful adoption of IFRSs in Japan.
Commenting on the meeting, Sir David Tweedie, Chairman of the IASB said:
This was a highly successful meeting. The staff of the ASBJ produced some excellent papers that allowed significant progress to be made across projects covered by the ‘Tokyo Agreement’.
We are on track to complete our convergence work by the June 2011 target.
Ikuo Nishikawa, Chairman of the ASBJ said:
In this meeting, ASBJ’s comments were well received as they may contribute to the progress of the MoU projects between the IASB and the FASB.
In addition, about local practical issues upon the implementation of IFRSs, we are delighted that further communications between the staff were confirmed.
The next meeting of the boards is scheduled for September 2010 in London, U.K.
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