®
Accounting Standards
Contribution to International Accounting
Board
Standards
Liaison Board Member,
International Accounting Standards Board
Japan

International
®
Board
Japan and its contribution to
International Accounting Standards
International Accounting Standards Board
Tatsumi Yamada

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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World Congress of
Accountants Hong Kong
2002

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Trustees
(16)
Board of
Directors
(14)
Accounting Standards Board of Japan Directors (14)
(ASBJ)
Board Members (13)
<Including 3 full-time members>
Technical Staff (17)
Technical Committee ※
Auditors
(2)
Secretariat (10 ）
・ Administration
・
Accounting
・ Disclosure
・ Public Relations
※ For each agenda project, a Technical Committee will be formed as a working group.
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
World Congress of
Accountants Hong Kong
2002

 Technical Committees

Treasury Stock, Earning Per Share, Stock
Options, Financial Instruments, Leases, etc.
Standing Committees
- Practical Solutions
- International Issues
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World Congress of
Accountants Hong Kong
2002

 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
World Congress of
Accountants Hong Kong
2002
®

 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
World Congress of
Accountants Hong Kong
2002
®

 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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World Congress of
Accountants Hong Kong
2002

Current Activities of ASBJ (1/2) ®
 International contribution
 Providing input to IASB
Liaison member
 Providing comments to IASB
 Attending Liaison Countries’
Meeting
World Congress of
Accountants Hong Kong
2002

Current Activities of ASBJ (2/2) ®
 International contribution
 Critical Issues
 Business Combination
 Performance Reporting
 Longer-term financial instruments (former JWG)
World Congress of
Accountants Hong Kong
2002


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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World Congress of
Accountants Hong Kong
2002

Current Developments of Japanese
Accounting Standards (1/3)
®
1.
2.
3.
4.
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
World Congress of
Accountants Hong Kong
2002

Current Developments of Japanese
Accounting Standards (2/3)
5.
6.
7.
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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World Congress of
Accountants Hong Kong
2002

Current Developments of Japanese
Accounting Standards (3/3)
8.
9.
10.
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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World Congress of
Accountants Hong Kong
2002

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)
World Congress of
Accountants Hong Kong
2002
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4. Accounting standard for stock options
5. Implementation guidance for the business combinations
6. Accounting standard for lease transactions
World Congress of
Accountants Hong Kong
2002
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
ASBJ’s mission and task
 Must deal with domestic systems
Commercial Code, Tax requirement
 Eventual goal- Convergence
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World Congress of
Accountants Hong Kong
2002

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International
Accounting Standards
Board
International Accounting Standards Board
Tatsumi Yamada