Release of Project Plan Concerning the Development of Japanese Accounting Standards – Initiatives towards the international convergence of accounting standards in light of the equivalence assessment by the EU
October 12, 2006
Accounting Standards Board of Japan
The Accounting Standards Board of Japan (ASBJ) has decided to formulate and release “ASBJ Project Plan” focusing on accounting standards development projects related to convergence in an attempt to indicate the status of initiatives of the ASBJ in a clearer manner to various constituencies in Japan and abroad.
In this report, based on the proposal concerning a time-framed approach in light of the EU equivalence assessment, titled “Towards the International Convergence of Accounting Standards” issued by the Planning and Coordination Committee of the Business Accounting Council in July 2006, primary emphasis was placed on mapping out the work planned to be achieved through the end of 2007, and also on clarifying the prospects of convergence status as of the beginning of 2008 concerning the initiatives to be undertaken with respect to the 26 issues for which the remedies were advised by the Committee of European Securities Regulators (CESR).
The ASBJ is fully aware that proceeding with the joint project with the International Accounting Standards Board (IASB) minimizes the differences between the two accounting standards. In addition, the ASBJ envisions actively undertaking the necessary initiatives to solve the differences with steady steps especially in the remedies for issues as advised by the CESR in light of their importance.