Accounting%20Standards%20Board%20of%20Japan%20and%20its%20Contribution%20to%20International%20Accounting%20Standards

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Accounting Standards Board of Japan and its
Contribution to International Accounting Standards
Tatsumi YAMADA
Liaison Board Member, International Accounting
Standards Board Japan
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Accounting Standards Board of Japan and its
contribution to International Accounting
Standards

• International Accounting Standards Board
• Tatsumi Yamada

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Accounting Standards Board of Japan (ASBJ)

• Established on July 26, 2001, as a private sector
  standards setter
• Reorganization of IASC in 2001
• Counterpart as a liaison country
• Support and proposals by market participants

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Structure of ASBJ
Trustees (16)
Accounting Standards Board of Japan Directors
(14) (ASBJ) Board Members (13) ltIncluding 3
full-time membersgt Technical Staff (17)
Technical Committee ?
Theme Advisory Council (16)
Composition of ASBJ 3-preparers
5-Users(Analysts) 3-Auditors
3-Academics Including the members from
Stock Exchange, banking and insurance
sector
Board of Directors(14)
Auditors (2)
? For each agenda project, a Technical Committee
will be formed as a working group.
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Organization of ASBJ

• Technical Committees
• Treasury Stock, Earning Per Share, Stock
  Options, Financial Instruments, Leases, etc.
• Standing Committees
• - Practical Solutions
• - International Issues

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ASBJs Standards Setting

• 3 types of documents
• Statement / Guidance / PITF
• Invite Comments by Exposure Drafts
• Meetings of the Board and Special Committees are
  open to the public
• Publication of final decision (60 vote ) and
  dissenting views

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Tasks of ASBJ (1/2)

• To investigate and develop generally accepted
  accounting standards in Japan
• To investigate practices concerning corporate
  finance and disclosure to make pertinent
  recommendation
• To contribute to the development of a
  high-quality internationally accepted accounting
  standards

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Tasks of ASBJ (2/2)

• To study and research the concepts and
  philosophies on which the development of
  accounting standards is based
• To conduct basic research to inventory Japanese
  existing rules of accounting standards in Japan

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Current Activities of ASBJ (1/2)

• International contribution
• Providing input to IASB Liaison member
• Providing comments to IASB
• Attending Liaison Countries Meeting

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Current Activities of ASBJ (2/2)

• International contribution
• Critical Issues
• Business Combination
• Performance Reporting
• Longer-term financial instruments (former JWG)

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Current development of Accounting Standards

• Accounting Big Bang- Standards have undergone
  tremendous developments in Japan in the past 5
  years.
• The result has been a dramatic improvement in
  their quality, in line with IAS.

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Current Developments of Japanese Accounting
Standards (1/3)

• Revision of Consolidated Financial Statement
  Principles (June 1997) ? IAS 27 and 28
• Accounting Standards on Cash Flow Statements
  (March 1998) ? IAS 7
• Accounting Standards on Interim Reporting (March
  1998) ? IAS 34
• Accounting Standards on Research and Development
  Costs (March 1998) ? IAS 38

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Current Developments of Japanese Accounting
Standards (2/3)

• Accounting Standards on Post-Employment Benefits
  (June 1998) ? IAS 19
• Accounting Standards on Tax Effect Accounting
  (Income Tax) (October 1998) ? IAS 12
• Accounting Standards on Financial Instruments
  (January 1999) ? IAS 32 and 39

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Current Developments of Japanese Accounting
Standards (3/3)

• Revision of Accounting Standards on Foreign
  Currency Denominated Transactions and Translation
  (October 1999) ? IAS 21
• Impairment of assets (August 2002) ?IAS 36
• Accounting for EPS (September 2002) ?IAS 33

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Short-term Agenda (1/2)

• 1. Accounting standard required by
  implementation of the new consolidated tax return
  system
• 2. Implementation guidance for the impairment
  accounting standard
• 3. Fixed assets accounting (except for
  impairment accounting)

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Short-term Agenda (2/2)

• 4. Accounting standard for stock options
• 5. Implementation guidance for the business
  combinations
• 6. Accounting standard for lease transactions

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Convergence of accounting standards

• ASBJs mission and task
• Must deal with domestic systems
• Commercial Code, Tax requirement
• Eventual goal- Convergence

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Thank You !

• International Accounting Standards Board
• Tatsumi Yamada