ASBJ and IASB hold seventh meeting aiming towards goal of convergence in accounting standards

11 April 2008

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The Accounting Standards Board of Japan (ASBJ) and the International Accounting Standards Board (IASB) have held their second meeting in Tokyo since the announcement of the initiative to accelerate convergence between Japanese generally accepted accounting principles (GAAP) and International Financial Reporting Standards (IFRSs), known as the ‘Tokyo Agreement' in August 2007. This was the seventh meeting between the two boards. The two day meeting was held on 8 and 9 April 2008.

At the beginning of this meeting, representatives of the ASBJ explained the progress of the items listed in its project plan issued in December 2007 based on the Tokyo Agreement. The boards confirmed that the convergence project to eliminate major differences between Japanese GAAP and current IFRSs (as defined by the July 2005 CESR assessment of equivalence) by the end of 2008 is progressing in line with the project plan.

In addition, representatives of the IASB explained the progress of the projects including medium and long-term items. The representatives of the boards exchanged views on the following items, which are included in the significant items to be improved in the medium and long term. They deepened mutual understanding of the technical issues on those items.

• Consolidation
• Revenue recognition
• Insurance contracts - Interaction with other projects
• Liability and equity
• Financial statement presentation

In this meeting, representatives of the boards also exchanged views on the recent international credit crisis.

Commenting on the meeting, Ikuo Nishikawa, Chairman of the ASBJ, said:

We are pleased that we and the IASB share the understanding of steady progress of the project in line with our project plans. Continuing the good progress to be jointly made through future meetings and with close co-operation of staff from both boards, we will continue to make progress on the convergence further in the future. In addition, we will address the issues to ensure credibility and transparency of international financial and capital markets in co-operation with the interested parties, including the IASB.

Sir David Tweedie, Chairman of the IASB, said:

The globalisation of the world’s capital markets is accelerating year by year. As a consequence, IFRSs are increasingly being accepted worldwide—109 countries now use international standards. Following the signing of the Tokyo Agreement, we are delighted to return to Tokyo to have further in-depth discussions with our colleagues at the ASBJ. These discussions covered the key projects we hope to complete before mid-2011 and the manner in which Japan will converge its standards with IFRSs.

The next joint meeting is scheduled for September 2008 in London, United Kingdom.

Press enquiries

• Mark Byatt, Director of Corporate Communications, IASB
  Telephone: +44 (0)20 7246 6472
  Email: mbyatt@iasb.org
• Sonja Horn, Communications Adviser, IASB
  Telephone: +44 (0)20 7246 6463
  Email: shorn@iasb.org