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Topics under discussion |
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On March 27 and 28, 2007 the Accounting Standards Board of Japan (ASBJ) and the International Accounting Standards Board (IASB)
held their fifth joint meeting in increasing convergence between Japanese GAAP and IFRS in Tokyo.
Developments were made in the following areas:intangible assets (including R&D expenses),
retrospective restatement, scope of consolidation (disclosure related to special purpose entities), post-retirement benefits and business combinations.
The next meeting is scheduled in London. |
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Evaluation of J-GAAP |
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In the 2005 EU equivalence assessment, the CESR reported 26 items which required remedies to Japanese GAAP. Another assessment report is scheduled for early 2008.
The FSA and EC are jointly developing a two-way monitoring framework on the convergence progress, to move towards mutual recognition. |
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J-GAAP in the U.S. |
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The FSA is working with the SEC in exploring the possibility of mutual recognition of each other's accounting principles.
However, to recognize any foreign standards, the SEC has placed conditions that the accounting standards must be widely used in the US market and that the standards must be comprehensive,
high quality and consistently interpreted and applied. |
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