NEWS RELEASE 08/26/11
Representatives of the Accounting Standards Board of Japan and the Financial
Accounting Standards Board Hold Biannual Meeting
Norwalk, CT, August
26, 2011—Representatives of the Accounting Standards Board of Japan
(ASBJ) and the Financial Accounting Standards Board (FASB) met on August 18 and
19, 2011, in Tokyo, Japan. This meeting was the eleventh in a series of
discussions between the ASBJ and the FASB.
The FASB and the International
Accounting Standards Board (IASB) have been actively holding joint meetings with
the aim of issuing final standards to improve and converge U.S. GAAP and
International Financial Reporting Standards (IFRSs).
The ASBJ supports
the efforts by the FASB and the IASB towards developing high-quality global
accounting standards and is making progress with its projects to achieve
convergence between Japanese GAAP and IFRSs, taking into consideration the
progress of the joint projects by the FASB and the IASB.
At this meeting,
the ASBJ and the FASB updated each other with the recent developments in their
respective convergence projects with the IASB. Furthermore, the ASBJ and the
FASB exchanged views on the following projects undertaken by the FASB and the
IASB:
- Financial instruments (including the credit impairment model for financial
assets and the classification and measurement of financial assets and
financial liabilities)
- Revenue recognition (including the recent deliberations that will lead to
the re-exposure draft to be issued in the third quarter of 2011)
- Leases (including the recent deliberations that will lead to the
re-exposure draft to be issued in the fourth quarter of 2011)
- Insurance contracts (including the accounting for the effects of changes
arising from the remeasurement of insurance contract liabilities)
Representatives of the ASBJ and the FASB agreed that their ongoing
discussions are useful in promoting mutual understanding that will contribute to
subsequent deliberations at each Board and to the future development of
high-quality accounting standards on the significant items to be improved with
the IASB. The ASBJ and the FASB agreed that they would continue to exchange
views on issues faced and potential future concerns.
Ikuo Nishikawa,
Chairman of the ASBJ, stated, "MoU projects and other joint projects undertaken
by the FASB and the IASB are of high interest to Japanese constituents. It was
extremely meaningful for us to exchange views on financial instruments, revenue
recognition, leases, and insurance contracts with the FASB at a crucial time
when the FASB and the IASB are redeliberating issues towards the finalization of
common standards. We hope our discussions at this meeting serve as effective
inputs in the finalization process for each standard. The ASBJ is committed to
continue to contribute to the development of high-quality, global accounting
standards thorough its activities, including periodic meetings with the
FASB."
Leslie F. Seidman, Chairman of the FASB, stated, "Our ongoing
dialogue with the ASBJ has contributed to a deeper understanding of the issues
that both Japan and the United States face in working toward the mutual goal of
creating high-quality, comparable accounting standards. As a result of these
discussions, I believe we will be able to move closer to achieving that
goal."
The next joint meeting is planned in the first quarter of 2012 in
Norwalk, Connecticut.
About the Accounting Standards Board of
Japan
The Accounting Standards Board of Japan (ASBJ) was
established in July 2001 as a private-sector organization. Accounting standards
developed by the ASBJ are to be authorized by the Financial Services Agency as
part of generally accepted accounting principles. The ASBJ develops accounting
standards and implementation guidance that appropriately reflect the environment
in which business enterprises operate. The ASBJ also communicates with
corresponding organizations abroad and contributes to the development of global
accounting standards. For more information about the ASBJ, visit its website at
https://www.asb.or.jp/asb/top_e.do.
About the Financial
Accounting Standards Board
Since 1973, the U.S. Financial
Accounting Standards Board (FASB) has been the designated organization in the
private sector for establishing standards of financial accounting and reporting
in the United States. Those standards govern the preparation of financial
reports and are officially recognized as authoritative by the Securities and
Exchange Commission and the American Institute of Certified Public Accountants.
Such standards are essential to the efficient functioning of the economy because
investors, creditors, auditors, and others rely on credible, transparent, and
comparable financial information. For more information about the FASB, visit its
website at www.fasb.org.