The International Accounting Standards Board (IASB) and the Accounting Standards Board of Japan (ASBJ) have held their twelfth meeting to further progress their convergence activities, and to review preparations for the intended adoption of International Financial Reporting Standards (IFRSs) in Japan. Led by Sir David Tweedie, Chairman of the IASB and Ikuo Nishikawa, Chairman of the ASBJ, the meeting took place on 9 and 10 September 2010 in London.
The IASB and the ASBJ have accelerated their work towards the convergence of IFRSs currently in effect and Japanese generally accepted accounting principles (GAAP) by June 2011, as described in their Memorandum of Understanding, known as the Tokyo Agreement.
Japanese listed companies meeting certain criteria are permitted to prepare consolidated financial statements in accordance with IFRSs from fiscal years ended 31 March 2010. The ASBJ, supported by the IASB, is working with Japanese constituents to support interpretative and practical issues relating to the voluntary adoption of IFRSs in Japan.
Representatives of both boards stated that the ASBJ’s continuing participation in the IASB’s standard-setting process contributes to the development of a single set of high quality global accounting standards. They also believe that the IASB’s and the ASBJ’s ongoing work towards convergence of Japanese GAAP and IFRSs is an important step on the path towards Japanese adoption of IFRSs.
A summary of the discussions is included in the appendix of this document.
Commenting on the meeting, Sir David Tweedie, chairman of the IASB said:
This was a highly successful meeting. We remain on track to complete the convergence of Japanese GAAP and IFRSs by June 2011 as described in the Tokyo Agreement.
Ikuo Nishikawa, chairman of the ASBJ said:
We are pleased that we had extensive discussions and exchanged our views on prioritised projects currently being addressed by the IASB. We will continue to cooperate with the IASB in developing high-quality, global accounting standards.
The next meeting of the boards is scheduled for April 2011 in Tokyo, Japan.
- Mark Byatt, Director of Communications, IFRS Foundation
Telephone: +44 (0)20 7246 6472
- Gillian Bishop, Communication Manager, IFRS Foundation
Telephone: +44 (0)20 7246 6463