ASBJ and IASB Progress on Accounting Standards Convergence

The Accounting Standards Board of Japan (ASBJ) and the International Accounting Standards Board (IASB) have held their 10th meeting to accelerate convergence of Japanese generally accepted accounting principles (GAAP) and International Financial Reporting Standards (IFRSs).

Representatives of the IASB provided an update on their ongoing project work, in particular on those projects that form part of the convergence programme between the IASB and the US Financial Accounting Standards Board (FASB) and on the measures that are being undertaken by the IASB in response to the financial crisis.

The ASBJ reported that good progress is being made towards convergence of IFRSs and Japanese GAAP. As outlined in the Tokyo Agreement, these efforts extend to all projects on the IASB’s agenda. Representatives of the boards also exchanged views on the recent IASB exposure draft “Financial Instruments: Classification and Measurement” and the following important items:

• Other comprehensive income, and recycling/non-recycling: cross-cutting issues among financial statement presentation, financial instruments (classification and measurement), and post-employment benefits.
• Measurement of liabilities: cross-cutting issues among financial liabilities and non-financial liabilities (IAS37), including own credit risk.

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