The International Accounting Standards Board
(IASB) and the Accounting Standards Board of Japan (ASBJ) will
continue the convergence effort and establish a closer
relationship, ahead of Japan’s decision on adoption of IFRS
expected next year.

Representatives of the boards met to discuss
projects under a MoU known as the Tokyo Agreement, including
revenue recognition, leases, financial instruments and insurance
contracts. They also discussed interpretation and practical issues
relating to the voluntary application of IFRSs in Japan.

IASB chairman David Tweedie said that over the
past four years, the ASBJ, “has not only changed many Japanese
standards to conform to their international equivalents but under
(ASBJ chair) Ikuo Nishikawa’s direction has also been very
influential in the current debates on new IFRSs.”

“Our attention now turns to deepening the
relationship between the IASB and the ASBJ in preparation for a
decision in 2012 on Japanese adoption of IFRSs,” Tweedie added.

The next meeting of the boards is scheduled
for the fourth quarter 2011 in London.

Meanwhile, David Tweedie and two other members
of the IASB, Warren McGregor and Tatsumi Yamada, will end their
term of duty at the end of this month.