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