The Financial Accounting Standards Board
(FASB) and Accounting Standards Board of Japan (ASBJ) have met to
provide updates on their respective financial reporting convergence

This was the twelfth meeting in a series of
discussions between the two bodies, aiming to develop high-quality
global accounting standards.

The ASBJ is working on its projects to achieve
convergence between Japanese GAAP and IFRS, taking into
consideration the joint projects by the FASB and the International
Accounting Standards Board (IASB).

At the meeting, the ASBJ also explained its
comments on the IASB’s Agenda Consultation 2011

Furthermore, the FASB and the ASBJ exchanged
views on a number of projects undertaken by the FASB and the IASB,
including Credit impairment model for financial assets,
Classification and measurement of financial instruments and
insurance contract, Hedge accounting, Revenue recognition, Leases
and Investment companies.

“In times of changing environments of global
accounting standards, we had constructive discussions with the
representatives of the FASB regarding financial instruments,
revenue recognition and leases, most of which are of high interest
to Japanese constituents. We believe that the discussions in this
meeting contribute to the finalisation of convergence projects
between the FASB and the IASB and the development of high-quality
global standards.” ASBJ chairman Ikuo Nishikawa stated.

 “Our ongoing dialogue with the ASBJ has
led to a deeper appreciation of the issues that both the US and
Japan face in working toward our common goal of developing
high-quality, comparable accounting standards. Our discussions this
week were very informative and will help us achieve that goal.”
FASB chairman Leslie Seidman said.
The ASBJ and the FASB agreed that they would continue to exchange
views on issues faced and potential future concerns.

The next meeting is planned in the second half
of 2012 in Tokyo, Japan.