Representatives of Accounting Standards Board of Japan, Financial Accounting Standards Board Hold Biannual Meeting
Representatives of the Financial Accounting Standards Board (FASB) and the Accounting Standards Board of Japan (ASBJ) met on February 6 and 7, 2012, in Norwalk, Connecticut. This meeting was the twelfth in a series of discussions between the FASB and the ASBJ.
The ASBJ supports the efforts by the FASB and the International Accounting Standards Board (IASB) to develop high-quality global accounting standards and is working on its projects to achieve convergence between Japanese GAAP and International Financial Reporting Standards (IFRSs), taking into consideration the progress of the joint projects by the FASB and the IASB.
At this meeting, the FASB and the ASBJ provided updates on their respective convergence activities with the IASB with the aim of contributing to the development of high-quality global standards. The ASBJ also explained its comments on the IASB’s Agenda Consultation 2011. Furthermore, the FASB and the ASBJ exchanged views on the following projects undertaken by the FASB and the IASB:
Credit impairment model for financial assets
Classification and measurement of financial instruments and insurance contracts
Representatives of the ASBJ and the FASB agreed that their ongoing discussions are useful in promoting mutual understanding on the significant items to be improved with the IASB that will contribute to subsequent deliberations at the FASB and the ASBJ and to the future development of high-quality accounting standards. The ASBJ and the FASB agreed that they would continue to exchange views on issues faced and potential future concerns.
Leslie F. Seidman, Chairman of the FASB, stated, “Our ongoing dialogue with the ASBJ has led to a deeper appreciation of the issues that both the U.S. and Japan face in working toward our common goal of developing high-quality, comparable accounting standards. Our discussions this week were very informative and will help us achieve that goal.”
Ikuo Nishikawa, Chairman of the ASBJ, stated, “In times of changing environments of global accounting standards, we had constructive discussions with the representatives of the FASB regarding financial instruments, revenue recognition and leases, most of which are of high interest to Japanese constituents. We believe that the discussions in this meeting contribute to the finalization of convergence projects between the FASB and the IASB and the development of high-quality global standards.”
The next joint meeting is planned in the second half of 2012 in Tokyo, Japan.