11 September 2008

ASBJ and IASB meet to review progress in achieving convergence inaccounting standards
The Accounting Standards Board of Japan (ASBJ) and the International Accounting Standards Board(IASB) have held their eighth meeting in London to accelerate convergence between Japanesegenerally accepted accounting principles (GAAP) and International Financial Reporting Standards(IFRSs).

Led by Ikuo Nishikawa, Chairman of the ASBJ, and Sir David Tweedie, Chairman of theIASB, the two-day meeting was held on 8 and 9 September 2008.
As part of this meeting, representatives of the IASB provided an update on plans to complete theMemorandum of Understanding (MOU) agreed in 2006 between the IASB and US Financial
Accounting Standards Board (FASB), and the progress of the projects including medium- andlong-term items.
Representatives of the ASBJ explained the progress of the items listed in its project plan of December
2007 based on the Tokyo Agreement.

Those present confirmed that the convergence project toeliminate major differences between Japanese GAAP and IFRSs in use (as defined by the July 2005
CESR assessment of equivalence) by the end of 2008 is progressing in line with the project plan.
In addition, the representatives of the ASBJ described its continuous effort towards convergence in thelight of the IASB’s work plan.
Representatives of the boards exchanged views on the following important items, which are thesubject of recent discussion papers and exposure drafts published by the IASB.
z

Conceptual frameworkz

Financial instruments (replacement of existing standards)z

Liability and equityz

Post-employment benefits (including pensions)

The representatives of the ASBJ also explained that the ASBJ will address convergence of accounting
standards actively through the publication of discussion papers on the topics described in the MOU,
such as financial instruments and post-retirement benefits, which will be developed on the basis of theIASB’s discussion papers.
Representatives of the boards believe that their discussions will contribute to the future developmentof high quality accounting standards on the significant items to be improved in the medium and long

term.

They also reaffirmed that it is essential for the boards to continue to co-operate closely,

including an increase in the ASBJ staff seconded to the IASB in order to continue to participate
actively in the IASB’s standard-setting.

Commenting on the meeting, Ikuo Nishikawa, Chairman of the ASBJ, said:
I believe that continuous exchange of views between the ASBJ and the IASB on important items
including the topics described in the MOU will contribute to develop high quality accounting
standards.

Enhancing the good progress to be jointly made through the meetings and with close

co-operation of staff from both boards including an increase in the number of ASBJ staff
seconded to the IASB, the ASBJ will continue to make progress on the convergence towards 2011
in the light of the IASB’s new work plan.
Sir David Tweedie, Chairman of the IASB, said:
Co-operation between the IASB and the ASBJ has strengthened over the past few years,
particularly following the Tokyo Agreement.

We welcome these regular opportunities to discusswith the ASBJ projects of critical importance to the programme outlined in the Memorandum ofUnderstanding between the IASB and the FASB.

These discussions undoubtedly help the IASB

in ensuring that high quality standards will be produced.

The next joint meeting is scheduled for March 2009 in Tokyo, Japan.

Notes to Editors:
The Tokyo Agreement
The ‘Tokyo Agreement’, a joint declaration announced by the ASBJ and the IASB on 8 August 2007,
sets out an initiative to accelerate a convergence programme for IFRSs and Japanese GAAP firstannounced in March 2005.

The aim of the initiative is to eliminate major differences between

Japanese GAAP and current IFRSs in use (as defined by the July 2005 CESR assessment ofequivalence) by 2008, with the remaining differences that the boards identified being removed on or
before June 2011.

Whilst the target date of 2011 does not apply to any major new IFRSs now being

developed that will become effective after 2011, both boards will work closely to ensure theacceptance of the international approach in Japan when new standards become effective.

About the ASBJ
The Accounting Standards Board of Japan (ASBJ) was established in July 2001 as a private sector
organisation.

Accounting standards developed by the ASBJ are to be authorised by the Financial

Services Agency as part of generally accepted accounting principles (GAAP).

The ASBJ develops

accounting standards and implementation guidance that appropriately reflect the environment in whichbusiness enterprises operate.

The ASBJ also communicates with corresponding organisations abroadand contributes to the development of global accounting standards. For more information about theASBJ, visit the Website at www.asb.or.jp/index_e.php.

About the IASBThe IASB was established in 2001 and is the standard-setting body of the International AccountingStandards Committee (IASC) Foundation, an independent private sector, not-for-profit organisation.
The IASB is committed to developing, in the public interest, a single set of high quality, global
accounting standards that provide high quality transparent and comparable information in general
purpose financial statements.

In pursuit of this objective the IASB conducts extensive public

consultations and seeks the co-operation of international and national bodies around the world.

Its 14members (12 of whom are full-time) are drawn from nine countries and have a variety of professional
backgrounds.

They are appointed by and accountable to the Trustees of the IASC Foundation, who

are required to select the best available combination of technical expertise and diversity ofinternational business and market experience.