IASB, Japan Regulators Working on IFRS, GAAP Convergence
Representatives of the International Accounting Standards Board (IASB) and the Accounting Standards Board of Japan (ASBJ) held their fourteenth biannual meeting in London on 31 October and 1 November 2011 to tackle the improvements needed for accounting standards.
The meeting provided the first formal opportunity for the boards to meet since Hans Hoogervorst and Ian Mackintosh were appointed in July 2011 as the IASB’s Chair and Vice-Chair respectively.
The boards discussed the joint work of the IASB and the US national standard-setter, the Financial Accounting Standards Board (FASB), to improve International Financial Reporting Standards (IFRSs) and US generally accepted accounting principles (GAAP) and to bring about their convergence.
The ASBJ supports the efforts of the IASB and the FASB towards developing high quality global accounting standards, and is making progress with its own work for convergence of Japanese GAAP and IFRSs by taking into consideration the progress of the IASB and FASB’s joint projects.
In addition to these discussions, the boards exchanged views on the financial instruments (including the credit impairment model for financial assets); revenue recognition (including the recent deliberations that will lead to the re-exposure draft expected to be issued during the fourth quarter of 2011); leases (including the recent deliberations that will lead to the re-exposure draft expected to be issued in the first quarter of 2012); and investment entities (regarding the exposure draft, Investment Entities, published by IASB in August 2011).
These are already being undetaken by IASB and FASB.
The IASB and the ASBJ also discussed interpretation and practical issues relating to the voluntary application of IFRSs in Japan. In addition, the ASBJ exchanged views with the IASB regarding the Agenda Consultation 2011 that the IASB is undertaking to gather views on the strategic direction and the priority of agenda areas, among other things, over the next three years.
Representatives of the IASB and the ASBJ agreed that their ongoing discussions contribute to the development of high-quality accounting standards and reaffirmed that it is essential for them to maintain their close co-ordination, and for the ASBJ to continue to participate actively in the IASB’s standard-setting process.
Hans Hoogervorst, Chair of the IASB, said, “This was a very successful and productive meeting. Of particular importance was the ASBJ’s contribution to our ongoing agenda consultation. Japan is a major economy and has an important role to play in international standard-setting.”
Ikuo Nishikawa, Chair of the ASBJ, added, “We are pleased to continue the active discussions towards the development of high-quality global accounting standards with the IASB under new leadership of Hans Hoogervorst and Ian Mackintosh, Chair and Vice-Chair respectively. We will continue to contribute to the IASB’s standard-setting activities by providing constructive opinion considering various views of Japanese constituents.”
The next joint meeting is planned for early in the second quarter of 2012 in Tokyo, Japan.