Issued November 17, 2009 (No. 11)

Contents

1. Development of the ASBJ Standards, etc. (released between August 8,
2009 and September 30, 2009)
2. Overview of ASBJ Meetings (182nd Meeting – 185th Meeting)
3. ASBJ’s Comments on Documents Issued by the IASB and the FASB
(issued between August 1, 2009 and September 30, 2009)
4. Updating of the ASBJ Project Plan
5. The 10th Joint Meeting with the IASB
6. Participation by ASBJ Full-time Board Member Kato in the National
Standard-Setters (NSS) Meeting
7. Participation by ASBJ Chairman
Standard-Setters (WSS) Meeting

Nishikawa

in

the

World

8. IASB/FASB Roundtable Meeting in Tokyo to Discuss the Exposure
Draft “Financial Instruments: Classification and Measurement”
9. Informal Meeting to Exchange Views with FASB
10. Meetings with the Securities Analysts Association of Japan (SAAJ)
Financial Statements Users Group
11. Meeting of the 7th Standards Advisory Council
12. FASF Seminar on the “Guide to the Preparation of Quarterly Reports”(for the Second Quarter Ending September 30, 2009)
13. FASF Managing Director Endo Visits Constituents in Europe
14. Technical Manager Maruyama Takes Part in an IFRS-related
Delegation to Australia
15. Project Progress (As of October 30, 2009)
16. Noticepg. 1
Copyright© ASBJ/FASF All Rights Reserved.

1. Development of the ASBJ Standards, etc. (released between August 8, 2009
and September 30, 2009)(1) [DP] Release of Discussion Paper on Provisions (September 8, 2009)(The comment deadline was November 9, 2009)(2) [DP] Release of Discussion Paper on Revenue Recognition (September 8, 2009)(The comment deadline was November 9, 2009)[Legend]
DP: Issue Paper, Discussion Paper
EP: Exposure Draft
Final: Statement/Guidance, etc. (final version)

2. Overview of ASBJ Meetings (182nd Meeting – 185th Meeting)(1) 182nd Meeting (held on August 4, 2009)a. Discussion Paper (Draft) on Fair Value Measurement and its Disclosure (Resolution
for public release)b. Progress of Studies Conducted by Technical Committee for Financial Instrumentsc. Progress of Studies Conducted by Technical Committee for Provisions
d. Progress of Studies Conducted by Technical Committee for Revenue Recognitione. Progress of Studies Conducted by Technical Committee for Retrospective Application
f. Progress of Studies Conducted by Retirement Benefits Accounting TechnicalCommittee
a. The Board approved the public release of the Discussion Paper on Fair Value
Measurement and its Disclosure.
The issues addressed by the Discussion Paper include definition of fair value,measurement methods and disclosure.
Regarding the measurement of fair value, international accounting standards employ
a three-level hierarchy, with respect to the inputs used when measuring fair value. In
principle, it should be maximized the use of relevant observable inputs and minimized
the use of unobservable inputs. Furthermore, disclosure is required in a hierarchicalmanner. The Discussion Paper discusses the possibility of introducing them in Japan.
b. The staff explained the overview of the IASB Exposure Draft “Financial Instruments:
Classification and Measurement,” and the Board discussed draft comments on the
Exposure Draft.
c. The staff explained the differences between the treatment of repairs and maintenancecost under IFRS and the treatment under J-GAAP.
The IFRS does not permit the recognizing of provisions for repairs that are currently
allowed in Japan. Therefore extensive changes of accounting practices in Japan mightpg. 2
Copyright© ASBJ/FASF All Rights Reserved.

be required if the same treatments are expected to be achieved.
d. The Board discussed the draft text of Discussion Paper.
The items discussed included the percentage of completion method, treatment ofmulti-element contracts, and treatment of revenue recognition upon shipping, and the
choice of revenue recognition basis (actual cash collection or expected cash collection)
in installment sales.
e. The Board discussed the draft text of the accounting standard on retrospective
application in response to comments received on the exposure draft.
An additional proposal was provided to allow certain types of notes to be omitted from
non-consolidated financial statements in cases where both consolidated andnon-consolidated financial statements are disclosed.
f. Of the various issues relating to retirement benefits, the Board discussed thequestion of whether only methods conforming to the benefits formula should bepermitted with respect to the attribution of retirement benefits, or whether the choiceof straight-line basis over entire service period should be permitted.
(2) 183rd Meeting (held on August 20, 2009)a. Progress of Studies Conducted by Technical Committee for Provisions
b. Progress of Studies Conducted by Technical Committee for Revenue Recognitionc. Progress of Studies Conducted by Intangible Assets Technical Committee
d. Progress of Studies Conducted by Technical Committee for Financial Instruments
a. The Board undertook final discussion on the draft text of the Discussion Paper on
Provisions, before submitting it for approval by the Board at the next Meeting.
b. The Board undertook final discussion on the draft text of the Discussion Paper on
Revenue Recognition, before submitting it for approval by the Board at the next
Meeting.
c. The Board discussed focusing on definitions and recognition criteria. It was pointed
out that the relationship between the definitions and the criteria was vague, and theBoard decided that further discussion was needed.
d. The staff presented the comments on the Discussion Paper on the Possible
Improvements of the Accounting for Financial Instruments.
With regard to the revision of classification, regarding the suggestions concerning thepossibility of reducing or eliminating the “available-for-sale financial assets” (othersecurities) category, there were many comments that the current approach should bemaintained.

pg. 3
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(3) 184th Meeting (held on September 1, 2009)a. Discussion Paper (Draft) on Provisions (Resolution for public release)b. Discussion paper (Draft) on Revenue Recognition (Resolution for public release)c. Updating of the Project Plan
d. Progress of Studies Conducted by Technical Committee for Financial Instruments
e. Progress of Studies Conducted by Technical Committee for Retrospective Applicationa. The Board approved the public release of the Discussion Paper on Provisions.
(The comment deadline was November 9, 2009.)
b. The Board approved the public release of the Discussion Paper on Revenue
Recognition.
The IASB and FASB are currently reviewing the accounting standards relating torevenue recognition. However, as it is likely that the development of revenue
recognition standards could have a pronounced impact on accounting practices inJapan, it is important that this issue be widely publicized, to which end the Discussion
Paper has been developed and its public release approved.
In broad terms, the content of the Discussion Paper includes: (1) A summary of the
IASB/FASB Discussion Paper; (2) The key issues relating to the adoption in Japan of
the approach proposed in the IASB/FASB Discussion Paper.
(The comment deadline was November 9, 2009.)
c. The Board discussed the updating of its Project Plan for the development ofaccounting standards by ASBJ in the period until 2011.
The Project Plan have been reorganized in three categories: (1) Items related to theremaining differences between existing Japanese GAAP and IFRSs; (2) Items related
to projects addressed in the MoU between the IASB and the FASB; (3) Items related to
IASB review of items other than the IASB/FASB MoU items. The public release of the
updated Project Plan took place on September 2, 2009.
d. The Board discussed the comments on the IASB Exposure Draft.
The IASB Exposure Draft “Financial Instruments: Classification and Measurement”
includes a reduction in the number of methods of measuring

financial instrumentsfrom four to two – fair value and amortized cost – and the recognition in othercomprehensive income (OCI) of subsequent changes in the fair value of investments
and dividends in equity instruments that are not held for trading. There would be norecycling of these amounts from OCI to net income. The Board’s discussion focused on
the importance of the relationship between gains and losses recognized in OCI andrecycling, and on the recognition of dividends received in net income.
e. The staff presented the comments received on the Exposure Draft on Retrospective
Application, and the Board discussed issues relating to quantitative and qualitative
significance.

pg. 4
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(4) 185th Meeting (held on September 17, 2009)a. Progress of Studies Conducted by Intangible Assets Technical Committeeb. Progress of Studies Conducted by Technical Committee for SPEsc. Progress of Studies Conducted by Retirement Benefits Accounting TechnicalCommittee
a. The Board discussed the draft text of Discussion Paper on Intangible Assets.
Following the review undertaken at the previous meeting, the Board discussed theissues of definition and recognition criteria.
b. Based on the comments received on the Discussion Paper, the Board discussed thegeneral direction of future consideration of issues relating to the scope of consolidated
accounting for SPEs.
c. The Board discussed draft comments on the IASB Exposure Draft “Discount Rate for
Employee Benefits.”
Given that the issues that the IASB Exposure Draft was intended to address do not
apply to the calculation of the discount rate for retirement benefit obligations in Japan,
and that the IASB plans to undertake a comprehensive review, including the discountrate, the Board decided that no comment should be made at this time.

3. ASBJ’s Comments on Documents Issued by the IASB and the FASB (issued
between August 1, 2009 and September 30, 2009)(1) The ASBJ submitted its Comments on the Discussion Paper "Credit Risk in Liability
Measurement" (September 1, 2009)(Click here for the IASB DP)(2) The ASBJ submitted its Comments on the Exposure Draft "Classification of Rights
Issues" (September 7, 2009)(Click here for the IASB ED)(3) The ASBJ submitted its Comments on the Exposure Draft "Financial Instruments:
Classification and Measurement" (September 14, 2009)(Click here for the IASB ED; click here for the revisions to the relevant standard; click
here for the basis for conclusions)(4) The ASBJ submitted its Comments on the Exposure Draft "Fair Value Measurement"(September 25, 2009)(Click here for the IASB ED; click here for the basis for conclusions; click here for theillustrative examples）

pg. 5
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4. Updating of the ASBJ Project Plan
On September 2, 2009, the Accounting Standards Board of Japan (ASBJ) announced the
updated ASBJ Project Plan through to 2011, which set out timeline for each project by
ASBJ.
The updated Project Plan was drawn up in response to the proposals contained inregarding ” Opinion on the Application of International Financial Reporting Standards(IFRS) in Japan (Interim Report)”, issued by the Business Accounting Council in June
2009, with regard to the strategy for International Financial Reporting Standards(IFRS) adoption in Japan and the need for a continued and accelerated convergenceprocess, and with reference to the Work Plan announced by the IASB in August 2009,
covering the period up to 2011.

5. The 10th Joint Meeting with the IASB
The ASBJ and the International Accounting Standards Board (IASB) held their 10th
Joint Meeting in London over two days – Monday September 7, and Tuesday September
8, 2009. ASBJ’s representatives at the Meeting included ASBJ Chairman Ikuo
Nishikawa, two ASBJ Board Members, and several ASBJ staff members; the IASB’srepresentatives included IASB Chairman Sir David Tweedie, two IASB Board Members,
and several IASB staff members. The Meeting schedule and the issues discussed areshown in the table below.
Time and Date

IssuesMorning, Sept. 7

Liabilities measurement;(open session)

Financial instruments (classification and measurement);
Other comprehensive income and recycling/non-recycling

Afternoon, Sept. 7(open session)

Other

comprehensive

incomeandrecycling/

non-recycling(continued)

Afternoon, Sept. 7

Adoption of IFRS in Japan

Morning, Sept. 8

Update on IASB activities
Update on ASBJ activities

Regarding liabilities measurement, the ASBJ and IASB representatives discussed
cross-cutting issues relating to the measurement of liabilities. With regard to financial
instruments, the Meeting participants discussed issues, including the idea underlying
proposed classification models, reclassification, fair value measurement for unlisted
equity securities with reference to the draft ASBJ’s comments on the IASB Exposure
Draft “Financial Instruments: Classification and Measurement,” which was issued by
the IASB in July 2009. With regards to other comprehensive income andpg. 6
Copyright© ASBJ/FASF All Rights Reserved.

recycling/non-recycling, they exchanged
their views on the concept of profit andprofit presentation in financial reporting;in addition, they exchanged their views on
the concrete idea on presentation ofstatement of comprehensive income given
by an IASB Board Member.
During the session in which Japan’s
adoption of IFRS, they discussed theissues, included the future handling ofissues relating to IFRS adoption and communication with the IASB following the
publication in June 2009 of the Business Accounting Council’s “Opinion on the
Application of IFRS in Japan.” During this discussion, the IASB expressed its support
for constituents in Japan and for the ASBJ.
The update on IASB activities was based on the IASB Work Plan announced in August
2009. The update covered recent IASB activities and major projects, and theyexchanged views focused on consolidation, financial statement presentation, and leaseaccounting. The update on ASBJ activities covered the contents of the new ASBJ Project
Plan issued in early September and the ASBJ initiatives relating to IFRS adoption; theyalso discussed the relationship between IFRS adoption and convergence, and the IFRS
for Small and Medium-sized Entities (SMEs).
The next joint meeting with the IASB is scheduled to be held in April 2010 in Tokyo.

6. Participation by ASBJ Full-time Board Member Kato in the National
Standard-Setters (NSS) Meeting
The 8th National Standard-Setters (NSS) Meeting was held on September 8 – 9, 2009 in
Frankfurt,

Germany.

There

were

approximately

50

participants,

includingrepresentatives of 22 national accounting standard-setters (including that of the host,
Germany), the European Financial Reporting Advisory Group (EFRAG), the IASB,.
ASBJ was represented at the Meeting by Full-time Board Member Atsushi Kato andSenior Technical Manager Toyoda.
The discussion focused on the issues which national accounting standard setters arefacing as the progress of international convergence of accounting standards, and on the
research projects being undertaken by national standard setters. The purpose of the
Meeting was to provide input into, and support for, the IASB’s projects and work plan.
The following topics were discussed at the Meeting:pg. 7
Copyright© ASBJ/FASF All Rights Reserved.

IssuePresentation Given By

September 8 (Tuesday)
1. Global Financial Crisis: Accounting Developments andU.K.

Implications
2. IASB Work Plan

U.K.

3. Conceptual Framework (Measurement)

IASB and U.S.

4. Raising of Issues for the IFRICIASB and Germany

September 9 (Wednesday)
5. Intangible Assets

Australia and Japan6. Effects Analysis of Accounting Standards

U.K.

7. The Financial Reporting of Pensions

U.K.

8. Retirement Benefit Plans: Implications of Withdrawing New Zealand
IAS26
9. Foreign Currency Transaction Accounting for Open South Korea
Economies
10. IFRS2 ‘Share-based Payment’ Review ProjectFrance11. A Framework for Disclosures

EFRAG and Canada

12. Operations and Procedures of the GroupU.K.

ASBJ gave a presentation on intangible assets. Regarding the issues on capitalization ofdevelopment costs encountered in the development of Japanese standard on intantbible
assets , the ASBJ Intangible Assets Technical Committee undertook a case study
analysis into implementation of the IAS38 that require capitalization of development
costs;. Based on the analysis, the ASBJ representative asked the participants whether
useful information was provided in accordance with the intent of the standard and healso stressed that the enhancement of implementation of standards at the international
level must also be an important issue for the Meeting.
The next NSS Meeting is scheduled to be held in Seoul, South Korea in April 2010.

7. Participation by ASBJ Chairman Nishikawa in the World Standard-Setters(WSS) Meeting
A World Standard-Setters (WSS) Meeting was held in London on September 10 – 11(Thursday – Friday), 2009. The WSS Meeting is held once a year in the autumn tofacilitate the exchange of views between the IASB and the national standard settersaround the world.
The 2009 WSS Meeting – which was chaired by IASB Board Member Tatsumi Yamada –was attended by nearly 100 people from around 50 countries. The Japanese delegation
included ASBJ Chairman Ikuo Nishikawa, Full-time Board Member Atsushi Kato,pg. 8
Copyright© ASBJ/FASF All Rights Reserved.

Senior Technical Manager Toyoda, and Technical Manager Itabashi.
The Meeting program focused on the IASB’s response to the global financial crisis. It
included an explanation of the IASB’s project planning and of recent key issues; theMeeting also included project updates of the IASB and small group discussions. The
programme was as follows:[September 10]


Welcome speech by IASB Chairman Sir David Tweedie



IASB Planning and Priorities



Accounting and the Financial Crisis: Consolidation and DerecognitionConsolidation project update

Derecognition project updateBreakout discussionsGroup feedback

Other Projects: Revenue Recognition

Breakout Discussions


IFRS for SMEs

Other projects (financial instruments with characteristics of equity, leases, andmeasurement)[September 11]Accounting and the Financial Crisis: Financial Instruments (recognition andmeasurement)

IASB project update

FASB project updateBreakout discussionsGroup feedback

Breakout DiscussionsTechnical update

Other projects (financial instruments with characteristics of equity, leases,
income taxes and measurement)

IFRS Implementation Activities Update

Full-time Board Member Atsushi Kato chaired one of the breakout discussion groups
during the second day’s session on Accounting and the Financial Crisis: Financial
Instruments (recognition and measurement). The participants of the breakout
discussion groups lively discussed the IASB Exposure Draft “Financial Instruments:
Classification and Measurement,” which was issued in July 2009. The valuable
feedback resulting from this discussion was presented to the IASB (in the plenary
session of the Meeting) by Mr. Kato.
pg. 9
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8. IASB/FASB Roundtable Meeting in Tokyo to Discuss the Exposure Draft“Financial Instruments: Classification and Measurement”
The IASB and the U.S. Financial Accounting Standards Board (FASB) held aroundtable meeting in Tokyo on September 3, 2009 to discuss the IASB’s Exposure
Draft“Financial

Instruments:

Classification

andMeasurement.”

ASBJ

also

participated in the meeting as joint coordinator. The roundtable meeting was held withthe aim of gathering opinions in the Asia region; similar roundtable meetings were
subsequently held in London (September 10) and in Norwalk, Connecticut (September
14).
The Tokyo roundtable meeting included two sessions on the same theme. The
participants included: IASB Board Members Patrick Finnegan, John Smith andTatsumi Yamada, along with IASB staff members; FASB Board Member Marc A. Siegel,along with FASB staff members; ASBJ Chairman Ikuo Nishikawa, and several Board
Members of the ASBJ; market participants from Asia and Oceania (including
representatives of national standard setters, auditing firms, financial institutions, andusers of financial statements); representatives of the Financial Services Agency. The
total number of participants was 43.
The IASB issued an Exposure Draft entitled “Financial Instruments: Classification andMeasurement” on July 14, 2009, while the FASB’s Board made a tentative decision
regarding the classification and measurement of financial instruments at a Board
Meeting held on July 15, 2009. The discussion at the roundtable meeting regarding the
IASB Exposure Draft and the FASB’s tentative decision was based on a staff paper that
had been distributed to participants in advance. Over the course of the two sessions, theparticipants expressed many opinions.
The main themes addressed were as follows:(1) The proposed classification approach:a. Whether the proposed classification of financial instruments into two categories
is appropriate.
b. Whether the condition used in the demarcation of the two categories areappropriate.
(2) The exemption to equity instruments:
a. Whether exemption should be permitted for equity instruments such as
cross-shareholdings.
b. The relationship between exemption and recycling.
(3) Fair value measurement for unlisted equity instruments:
a. Elimination of the current exemption that permit to measure at cost.
b. Reliability of the measured fair value.

pg. 10
Copyright© ASBJ/FASF All Rights Reserved.

(4) Other:a. Classification and measurement of financial instruments other than thosemeasured at fair value through profit and loss.
b. Treatment of securitized products.
The IASB and FASB are reviewing at their future meeting in light of the views
expressed at the roundtable meeting.
At the end of the roundtable meeting, IASB Board Member John Smith thanked theparticipants for attending.

9. Informal Meeting to Exchange Views with FASB
Representatives of ASBJ and FASB held an informal meeting to exchange views on
September 3, 2009. This was a brief meeting held to take advantage of the visit to Japanby FASB Board Member Marc A. Siegel, who was in Tokyo to attend the IASB/FASB
roundtable

meetingtodiscussthe

Exposure

Draft“Financial

Instruments:

Classification and Measurement,” which was held on the same day (September 3). The
ASBJ representatives included ASBJ Chairman Ikuo Nishikawa, Board Members, andstaff.
The meeting began with a presentation by FASB Board Member Marc A. Siegel on
recent developments in joint projects with IASB relating to financial instruments. He
summarized the discussions that have taken place within FASB regarding theclassification and measurement of financial instruments, impairment of financial assets,
and hedging activities, and explained the thinking underlying these discussions. The
Q&A session that followed included lively discussion of issues such as the accounting
treatment of “strategic investments.”

10. Meetings with the Securities Analysts Association of Japan (SAAJ) Financial
Statements Users GroupIn line with ASBJ’s objective of promoting communication with the users of financial
statements, meetings were arranged with the Financial Statements Users Group of the
Corporate Accounting Study Group established within the Securities Analysts
Association of Japan (SAAJ).
In the past, ASBJ was able to hear the views of financial statements users regarding
development of accounting standards on an individual basis via those members of ASBJ
and its technical committees who are financial statements users. However, ASBJ
became aware that closer communication with financial statements users was needed inorder to address the items related to the MoU between IASB and FASB in an
appropriate manner, and to bring about accounting standards convergence. To this end,
ASBJ collaborated with SAAJ to arrange these meetings.
pg. 11
Copyright© ASBJ/FASF All Rights Reserved.

The meetings were arranged in concert with the review of ASBJ’s development ofstandards, with the main aims of providing an opportunity to explain the current statusof the development of accounting standards, and of facilitating the exchange of views.
At the first meeting, which was held on August 3, they exchanged

views on thecontents of the Discussion Papers on Financial Statement Presentation and on
Accounting for Business Combinations issued by the ASBJ in July, and on international
trends in accounting for financial instruments. During the second meeting, held on
August 28, they exchanged views on ASBJ’s future policy with respect to development ofaccounting standards, and on the relationship between other comprehensive income
and recycling (based on a discussion of current net income concepts).
With regards to communication with preparers, ASBJ has for some time been holding
similar meetings with representatives of the Sub-committee on Accounting, Nippon
Keidanren (Japan Business Federation).

11. Meeting of the 7th Standards Advisory Council
The Financial Accounting Standards Foundation (FASF) held the 7th Standards
Advisory Council Meeting on August 4, 2009. The Meeting began with a report on
ASBJ’s recent activities, with an exchange of views regarding ASBJ Chairman
Nishikawa’s letter to the Chairman of the IASB concerning retirement benefits
accounting and classification of financial instruments, and regarding the timetable foraccounting standards convergence and the review of accounting for provisions.
Following an explanation of the IASB Exposure Draft “Financial Instruments:
Classification and Measurement,” the members exchanged their views on the IASB’s
proposal, the FASB’s tentative decision, and ASBJ’s response.
The meeting also included a report on the questionnaire survey regarding ASBJ
activities that was implemented in August 2008, as well as ASBJ’s major response to it,
and an explanation regarding the establishment of the IFRS Council, which has been set
up to promote awareness of the roadmap for IFRS adoption among the general public.

pg. 12
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12. FASF Seminar on the “Guide to the Preparation of Quarterly Reports” (for theSecond Quarter Ending September 30, 2009)
Starting on September 7, 2009, 11 sessions of the FASF Seminar on the “Guide to the
Preparation of Quarterly Reports” (for the Second Quarter Ending September 30, 2009)were held at 9 different locations throughout Japan: Tokyo (three sessions), Nagoya,
Osaka, Sapporo, Kanazawa, Hiroshima, Fukuoka, Takamatsu, and Sendai. As of April 1,
2009, two years had elapsed since the quarterly reporting system was first introduced.
This Second Quarter is the first time that companies have been required to provide
information for the current consolidated accounting period, the previous consolidated
accounting period, the current consolidated accounting period (cumulative), and theprevious consolidated accounting period (cumulative); in other words, this is the firsttime that companies have been required to provide “full disclosure.”
In addition, the Corporate Accounting andDisclosure

Division,

Planning

andCoordination Bureau, Financial Services
Agency gave a lecture on “Recent Issues
Relating to Disclosure”, and ASBJ gave alectureon“The

Roadmap for

IFRS

Adoption and ASBJ’s Initiatives,” which
included a summary of the contents of theOpiniononthe

ApplicationofInternational Financial Reporting Standards (IFRS) in Japan (Interim Report), and an
explanation of the updating of ASBJ’s Project Plan.
A total of 3,531 people attended the Seminar sessions, reflecting the high level ofinterest among constituents.

13. FASF Managing Director Endo Visits Constituents in Europe
Over the period from September 3 to September 9, 2009, FASF Managing Director
Hiroshi Endo visited a number of constituents in Europe, to explain developments inJapan regarding IFRS adoption, the establishment of the IFRS Council, and also tolisten to explanations regarding the latest developments in Europe and exchange views.
An outline of the meetings is given below:
 Mr. Patrice Marteau, Chairman of ACTEO (and Vice Chairman of the SAC):
Items discussed included an overview of ACTEO, the role and future of
non-consolidated financial statements in France, Mr. Marteau’s views on the first five
years of IFRS implementation, major issues currently being discussed in economic
and business circles in France, how to express views to the IASB, and IASCF
governance.
pg. 13Copyright© ASBJ/FASF All Rights Reserved.

 Mr. Naoyuki Suzuki, Chief Representative, Bank of Japan Representative Office inParis:
Items discussed included how France expresses its views to the IASB, the French
financial sector’s concerns on the IASB Exposure Draft on Financial Instruments
Accounting Standards, the attitude taken by the banking sector regulators in France
regarding revision of the accounting standards for financial instruments, and Frenchaccounting standards for the preparation of non-consolidated financial statements.
 Mr. Oliver Sherer, Pricewaterhouse Coopers Paris Office:Items discussed included concerns regarding IASCF governance, Mr. Sherer’s viewson the first five years of IFRS implementation, how auditors are dealing with the
adoption of IFRS consistently, and the French financial sector’s concerns regarding
the IASB Exposure Draft on Financial Instruments Accounting Standards.
 Mr. Vincent Papa of the CFA Institute (ARG Member):Items discussed included an overview of the CFA, methods of expressing views to the
IASB, Mr. Papa’s views on the first five years of IFRS implementation, and reasons forsupporting the direct method for cash flow statement.
 Mr. Peter Elwin of the Corporate Reporting User Forum (ARG Member):Items discussed included the background to the establishment of the Corporate
Reporting User Forum, concerns regarding the IASB and methods of expressing views
to the IASB, Mr. Elwin’s views on the first five years of IFRS implementation, andprojects particularly concerned.
 Sir David Tweedie, Chairman of the IASB:
Items discussed included political developments relating to accounting standards in
Europe, developments in the U.S. relating to IFRS adoption, and the steps taken by
the IASB with respect to constituents in the U.S.
 Mr. Tom Seidenstein, Chief Operating Officer of the IASCF:
Items discussed included the current IASCF funding situation, the outlook for funddisbursement by the IASCF, satellite office establishment status, the preparations for
the IASCF Roundtable regarding the review of the IASCF Constitution, politicaldevelopments relating to accounting standards in Europe, and negotiations with thebanking sector regulators regarding financial instruments accounting.
 Mr. Iain Selfridge and other staff members, Pricewaterhouse Coopers London Office:Items discussed included Mr. Selfridge’s views on the first five years of IFRS
implementation, and on the initiatives to promote IFRS adoption in Japan.

pg. 14
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14. Technical Manager Maruyama Takes Part in an IFRS-related Delegation toAustralia
During the period September 15 – 18, 2009, an IFRS-related Delegation from theJapanese Institute of Certified Public Accountants (JICPA) and ASBJ/FASF, headed by
Mr. Noriaki Shimazaki, Chairman of the Sub-committee on Accounting, Nippon
Keidanren (Japan Business Federation), visited Australia. ASBJ Technical Manager
Maruyama was a member of the Delegation.
The purpose of the Delegation was to hear constitutions’ views on and exchange
opinions regarding the impact of IFRS when it was first introduced in Australia and on
the current situation in Australia regarding IFRS implementation, as well as tostrengthen relations with accounting organizations in Australia. The Delegation visited
19 organizations, including the Treasury, the Financial Reporting Council (FRC), theAustralian Shareholders’ Association (ASA), the Australian Prudential Regulation
Authority (APRA), the Australian Accounting Standards Board (AASB), and theInstitute of Chartered Accountants in Australia (ICAA). The success of the Delegation
was largely due to the efforts of Mr. Jeffrey Lucy, Chairman of the FRC and IASCF
Trustee.
The main results achieved by the Delegation were as follows: Despite the differences in the overall environment, Australia’s experience as an
early adopter of IFRS can offer significant lessons for Japan with regard to IFRS
adoption, for example as regards the problems experienced by Australia in terms ofadoption costs, the attitude of auditing firms, etc., and the solutions adopted. It is
anticipated that effective use can be made of this information in the IFRS adoption
process in Japan in the future.
 The Delegation has contributed tothe building of strong relationships
with constituents in Australia. This
strengthening of relationships with
Australia should lead to astrengthening of relationships in the
Asia/Oceania region in general,facilitating collaboration with thesecountries to help make Japan’s voiceheard in the future.

In the offices of the Treasury, Australia

pg. 15
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15. Project Progress (As of October 30, 2009)
2009

2009

2010

2010

2010

2010

Q3

Q4

Q1

Q2

Q3

Q4

2011

Items related to the remaining differences between existing Japanese GAAP and IFRSs
Business Combinations(Step 2)
DP
ED
Final
Financial Statement Presentation
DP
ED
Final
Intangibles
DP
ED
Final
Retrospective Restatement
Final
Items related to projects addressed in the MoU between the IASB and the FASB
1. Scope of Consolidations
ED
Final
2. Financial Statement Presentation – phase B
DP
Comment
DPED
3. Revenue Recognition
DP
Comment
DPED
4. Liabilities and equity distinction
Comment
5. Financial Instruments- Reclassification
ED
Final- Classification and measurement
Comment
ED
Final- Impairment
Comment
ED
Final- Hedging
Comment
EDFinal
6. Fair Value Measurement and Disclosure
7. Post-employment BenefitsDP
Comment- Step 1- Step 2

ED

Final

ED

Final
Comment
EDDP
8. Lease
Comment
Comment
ED
ED
9. Derecognition
Comment
DP
Final
Items related to the IASB projects other than those addressed in the MoU between the IASB and the FASB
Earnings per Share*
ED
Final
Provisions
DP
ED
Final
Insurance contracts
Comment*: Temporary halt (restart depending on IASB’s situation)[Legend]
WG

Launch of Working GroupTC

Launch of Technical Committee

RR

Research Report

Comment

Comment on the DP or ED of IASB to be preparedDP

Discussion PaperED

Exposure Draft

Final

Standards/Guidance (Final Version)

Italicized legends indicate finished events.

pg. 16
Copyright© ASBJ/FASF All Rights Reserved.

16. Notice(1) New Publications
Periodical – Accounting Standards and Disclosure Quarterly No. 26 (published on
September 15, 2009)[Main Contents]Feature Article 1: “Towards IFRS Adoption in Japan”
“Establishing the IFRS Council to Promote IFRS Adoption,” FASF President
Toshitaka Hagiware et al.

“The Business Accounting Council’s Opinion and the Cabinet Office’s
Revisions,” the Financial Services Agency

Feature Article 2: “What Should the Financial Statements of the Future be Like?”
Discussion Meeting on the Financial Statement Presentation Project

Accounting Square: “Corporate Accounting and Corporate Auditors,” Katsutoshi
Chikudate, Chairperson, Japan Corporate Auditors Association, and Standing
Auditor, Tokyo Electric Power Company



CFO Letter: Through the Conversion of Accounting Standards,” Yasuyoshi
Karasawa, Senior Executive Officer and Director, Mitsui Sumitomo InsuranceGroup Holdings, Inc.



Chairman’s Voice: “Review of Accounting Standards for Financial Instruments,”
Ikuo Nishikawa, Chairman, ASBJ

Click here to buy this publication (Japanese Only).
(2) 1st Asian-Oceanian Standard-Setters Group Meeting
On 4 & 5 November 2009, the 1st meeting of the Asian-Oceanian Standard-Setters
Group (AOSSG) was held in Kuala Lumpur, Malaysia. And it drew to a successfully
close. Detail information will be provided in the next Newsletter.

pg. 17
Copyright© ASBJ/FASF All Rights Reserved.

“ASBJ Newsletter” (No. 11)
Issued on November 17, 2009.
Editor: Akiyoshi Maruyama
The views expressed in ASBJ Newsletter are not necessarily those of the ASBJ or the
FASF. The Authors and Publishers accept no responsibility for any loss or damage
resulting from reliance on the views expressed herein.
© Copyright, ASBJ/FASF All Rights Reserved
Website: https://www.asb.or.jp/asb/index_e.jsp
E-mail: publicity@asb.or.jp
Accounting Standards Board of Japan / Financial Accounting Standards Foundation
Fukoku Seimei Building 20F, 2-2, Uchisaiwaicho 2-chome, Chiyoda-ku, Tokyo, Japan(Zip Code: 100-0011)

pg. 18
Copyright© ASBJ/FASF All Rights Reserved.