ASBJ and FASB Meet to Discuss Global Convergence
Representatives of the Accounting Standards Board of Japan (ASBJ) and the Financial Accounting Standards Board (FASB) met for the 10th time Febraury, as part of a series of discussions between the ASBJ and the FASB designed to enhance dialogue between the two boards in their shared pursuit of global convergence of accounting standards.
In November 2010, the FASB and the International Accounting Standards Board (IASB) issued a joint statement, ‘Progress Report on Commitment to Convergence of Accounting Standards and a Single Set of High Quality Global Accounting Standards’, which affirmed their priority projects. The boards have been actively holding joint meetings with the aim of issuing final standards to improve and converge US Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS).
The decisions connected with the use of IFRS are expected to be made during 2011 for the US and in or around 2012 for Japan, according to the roadmap for the
potential use of financial statements prepared in accordance with IFRS by US issuers and the application of IFRS in Japan (interim report). With those forthcoming decisions in sight, both the ASBJ and the FASB are vigorously conducting their respective convergence programmes with the IASB.
The ASBJ supports the efforts by the FASB and the IASB towards developing a single set of high-quality global accounting standards and is making progress with its projects to achieve convergence between Japanese GAAP and IFRS, keeping pace with the progress of the joint projects by the FASB and the IASB.
Ikuo Nishikawa, chairman of the ASBJ, said: “As the decisions connected with the use of IFRS in both countries approach, it is extremely meaningful to exchange views with the FASB regarding financial instruments, revenue recognition, leases, and the measurement of liabilities, most of which are high priority MOU projects between the FASB and the IASB. I am pleased that we were able to affirm our continuing relationship between the ASBJ and the FASB under the leadership of newly appointed chairman, Leslie Seidman. The ASBJ will continue to contribute to the development of high-quality, global accounting standards.”
The next joint meeting is planned in the summer of 2011 in Tokyo, Japan.