Issued November 20, 2013 (No. 35)

Contents

1. New ASBJ Pronouncements (released between August 1 and September 30,2013)
2. Overview of ASBJ Meetings (270th – 272nd Meeting)
3. ASBJ’s Comment Submissions to the IASB and the FASB (August 1, 2013 –September 30, 2013)
4. The 2nd Accounting Standards Advisory Forum (ASAF) Meeting held inLondon
5. ASBJ attended the Meeting of the International Forum of AccountingStandard Setters (IFASS)
6. ASBJ attended the Asian-Oceanian Standard-Setters Group (AOSSG)
Interim Meeting
7. ASBJ attended the World Standard Setters (WSS) Meeting
8. ASBJ held an Open Seminar – September and October 2013
9. FASF Seminar for new practitioners, “To Utilize the FASF’s Guides to thePreparation of Annual Securities Reports and Quarterly Reports”

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1. New ASBJ Pronouncements (released between August 1 and September 30,2013)(1) [Final] Release of Revised Accounting Standards for Business Combinations and related
standards and implementation guidance (September 13, 2013)[Legend]
ED: Exposure Draft
Final: Statement/Guidance etc. (final version)

2. Overview of ASBJ Meetings (270th – 272nd Meeting)(1) 270th Meeting (held on August 9, 2013)
a. Outline of the IASB’s Discussion Paper A Review of the Conceptual Framework for Financial
Reporting, and the ASBJ’s Request for Views
b. Progress of the Lease Accounting Technical Committeec. Outline of the IASB’s Exposure Draft Insurance Contracts
d. Discussion on Business Combinations (Step 2)
e. Review of PITF No. 18a.

After being presented with an overview of the International Accounting Standards Board’s (IASB)
Discussion Paper A Review of the Conceptual Framework for Financial Reporting, issued on July18, 2013, the Board discussed how to respond.

b.

The Board discussed its draft comments on the revised Exposure Draft Leases, jointly issued by
the IASB and the FASB on May 16, 2013.

c.

After being presented with an overview of the IASB Exposure Draft Insurance Contracts issued
on June 20, 2013, the Board discussed issues relating to the Exposure Draft.

d.

After being presented with the draft revision of the Accounting Standard for Business
Combinations and related pronouncements, the Board agreed with staff that re-exposure of theproposal is not necessary and decided to proceed to vote on the release of the final standard.

e.

The Board discussed how to proceed with the review of PITF No.18 Practical Solution onUnification of Accounting Policies Applied to Associates Accounted for Using the Equity Method,
after being given a report on the progress made by Practical Solutions Standing Committee.

(2) 271st Meeting (held on August 28, 2013)a. Progress of the Technical Committee for ASAF

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b. Progress of the Lease Accounting Technical Committeec. Responses to the IASB’s ED Insurance Contracts, and outline of the FASB’s ED Insurance
Contracts
d. Progress of Working Group for Endorsement of IFRSs
e. Review of PITF No. 18a.

The Board was presented with a report on the progress made by the Technical Committee for theAccounting Standards Advisory Forum (ASAF), as well as a detailed explanation of thediscussions at the Technical Committee on the IASB Discussion Paper A Review of theConceptual Framework for Financial Reporting (presentation in the statement of comprehensive
income - profit or loss and other comprehensive income, and measurement).

b.

The Board discussed its draft comments on the revised Exposure Draft Leases, jointly issued bythe IASB and the FASB on May 16, 2013.

c.

An overview of the FASB Exposure Draft Insurance Contracts, issued on June 27, 2013 waspresented.

The Board then discussed the IASB’s revised Exposure Draft with regard to (1)adjustment of the contractual service margin, (2) presentation of insurance contract revenue andexpenses, and (3) interest expense in the profit or loss.
d.

An outline of the progress made by the Working Group for Endorsement of IFRSs was presented.

e.

The Board discussed how to proceed with a review of PITF No. 18, after being given a report onthe progress made by the Practical Solutions Standing Committee.

(3) 272th Meeting (held on September 9, 2013)
a. Reponses to the 2nd Meeting of the Accounting Standards Advisory Forum (ASAF)
b. Response to the IASB’s ED Leasesc. Responses to the IASB’s ED Insurance Contracts, and the FASB’s ED Insurance Contracts
d. Release of Revised Accounting Standards for Business Combinations and related standards andimplementation guidance [approval for release]a.

The Board was presented with a plan regarding what views to express at the second ASAF
meeting, held in London on September 25 and 26, 2013.

The Board discussed the following

agenda items for the ASAF Meeting: (a) Disclosure (an essay prepared by the AustralianAccounting Standards Board and the feedback documents on Disclosure Forum by the IASB), (b)Conceptual Framework (Prudence) and (c) Accounting for Macro Hedging Activities.
b.

The Board discussed its draft comments on the revised Exposure Draft Leases, jointly issued bythe IASB and the FASB on May 16, 2013.

c.

The Board discussed its draft comments on the IASB’s revised Exposure Draft Insurance
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Contracts and the FASB Exposure Draft Insurance Contracts.
d.

After being presented with a summary of discussions conducted to date relating to the revised
Accounting Standard for Business Combinations and related pronouncements were presented andthe Board conducted a final discussion and proceeded to vote on the standard.

All Board

members present at the meeting approved the release of the final standard (seven revised
accounting standards, including Revised Accounting Standard for Business Combinations (ASBJ
Statement No.21) and four revised implementation guidance), subject to minor editorial changes
which would be left to the Chairman.

3. ASBJ’s Comment Submissions to the IASB and the FASB (August 1, 2013 –September 30, 2013)(1)

ASBJ submitted its Comments on the Exposure Draft Leases to the IASB and the FASB
(September 13, 2013)

4. The 2nd Accounting Standards Advisory Forum (ASAF) Meeting held inLondon
The second ASAF Meeting was held in London on September 25 and 26, 2013.

The ASAF wasestablished in April 2013 to provide technical advice to the IASB, and it consists of twelveorganizations, including the ASBJ.

The meeting was attended by representative of these twelve

originations, as well as IASB Chairman Hans Hoogervorst, Vice Chairman Ian Mackintosh, and anumber of IASB Board Members and Staff members.

The ASBJ was represented by Chairman

Ikuo Nishikawa.
During the meeting, active discussions were conducted on the following topics.
z

Disclosure (IASB’s short-term and mi-term responses, essay released by the Australian
Accounting Standards Board)z

Conceptual Framework (Prudence)zLeasesz

Impairment of financial assetszInsurance ContractszMacro Hedging Activities

The next meeting is scheduled for December 5 and 6, 2013 in London.

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5. ASBJ attended the Meeting of the International Forum of Accounting StandardSetters (IFASS)The International Forum of Accounting Standard Setters (IFASS) Meeting was held on September 19and 20, 2013 in Brussels, Belgium.

The meeting was attended by 65 representatives from 38

national accounting standard setters and regional groups, including from the United Kingdom, theUnited States, Canada, France, Germany, Australia, Korea, India, and Singapore. The ASBJ wasrepresented by Board Member Tomo Sekiguchi and Director Takao Kamiya.
The purpose of the forum is to discuss research projects undertaken by national standard setters andto provide input into, and support for the IASB’s standards development.

The meeting is held twicea year (in Spring and in Fall).
The following topics were discussed at the meeting:
AgendaSpeaker

IASB Work Plan and IFRS Foundation Developments
1(1) General

Secretariat / IASB

(2) National Standard Setters’ responses to a number ofGermany

minor amendments(3) Interpretations

Secretariat

Topical issues in member countries
2(1) Rate Regulated Activities

Korea(2) Application of IFRS 11 Joint Arrangements

Italy(3) Integrated Reporting

IASB

Discussion on Conceptual Framework
34567(1) Overview of the projectUS(2) Prudence

EFRAG(3) Measurement

Australia

Revision to the Statement of Best Practice between National

IASB, Chairman,

Standard Setters and IASB

Australia

IFASS Administrative matters

Chairman / IASB

Post-Implementation Review of IFRS 3 Business

IASB

Combinations
Role of Business Model

EFRAG / France / UK

IASB’s major projects
8(1) Leases

IASB(2) Financial InstrumentsIASB(3) Insurance

IASBpg. 5
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Topical issues in member countries
9Netherlands

Disclosures required when partly owned subsidiaries areconsolidated

10

Report from Regional Groups

Regional Groups

Topical issues in member countries
11(1) Issues regarding discount rate

Germany(2) Presentation of exceptional items in the statement ofIndia

comprehensive income
12

Other

Chairman, Australia

6. ASBJ attended the Asian-Oceanian Standard-Setters Group (AOSSG) Interim
Meeting
On September 22, 2013 an interim meeting of the Asian-Oceanian Standard-Setters Group (AOSSG)
was held in London.

The meeting was attended by approximately 27 representatives from eleven

AOSSG member organizations.

The ASBJ was represented by Chairman Ikuo Nishikawa, Vice

Chairman Atsushi Kogasaka, Board Member Tomo Sekiguchi and Director Takao Kamiya.

Thismeeting was positioned as an interim meeting with the annual meeting to be held in November 2013.
Discussions were held on the AOSSG’s draft comments on the IASB exposure drafts and othertopics, as follows.
AgendaSpeaker

1

IFRS Center of Excellence ProjectChair

2Agriculture: Bearer Plants

India, Malaysia

3

Conceptual Framework

ASBJ

4

Insurance Contracts

Korea

5

Establishment of new Working GroupsChair

6OtherChair

7. ASBJ attended the World Standard Setters (WSS) Meeting
A World Standard-Setters (WSS) Meeting was held on September 23 and 24, 2013 in London.

TheWSS Meeting is held once a year by the IFRS Foundation to exchange views with national standardsetters.

The latest WSS Meeting was attended by a number of accounting standard setters fromaround the world.

The ASBJ was represented by Chairman Ikuo Nishikawa, Vice Chairman

Atsushi Kogasaka, Board Member Tomo Sekiguchi and Director Takao Kamiya.

The meeting

included a presentation by the IASB Board Members and staff on the IASB’s Discussion Paper A
Review of the Conceptual Framework for Financial Reporting, in particular on the definition ofpg. 6Copyright© ASBJ/FASF All Rights Reserved.

assets and liabilities, measurement and other comprehensive income.

The participants thenexchanged their views on these topics.

8. ASBJ held an Open Seminar – September and October 2013
The ASBJ/FASF has hosted the ASBJ Open Seminar series since 2010.

Through its work the ASBJ

is able to identify global trends in accounting in a timely manner and in the Open Seminars provides
up-to-date information about these trends to members of the FASF.
During the most recent seminars, the ASBJ provided an update on its plan regarding thedevelopment of endorsed IFRS, the IASB’s development of its projects, the Accounting Standards
Advisory Forum (ASAF) and others.

The ASBJ also provided an outline of Revised AccountingStandards for Business Combinations and related pronouncements, issued on September 13, 2013.
In addition, the Financial Services Agency presented on recent initiatives surrounding the IFRS.
The seminars were held in five major cities across Japan, with the support from local stockexchanges. More than 600 attendees across five locations joined the seminars.

In conjunction

with these seminars, the ASBJ/FASF met to exchange views with Hokkaido Economic Federation, in
Sapporo and the Japanese Institute of Certified Public Accountants, Tokai, in Nagoya, to promote
their understanding of and support for the ASBJ/FASF.

DateLocation

Venue

September 24, 2013

SapporoSapporo Securities Exchange

September 27, 2013

Fukuoka

TKP TENJIN City Center

September 30, 2013

Osaka

Osaka International Convention Center

October 1, 2013

Tokyo

Yomiuri Hall

October 4, 2013

NagoyaDAITEC SAKAE

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9. FASF Seminar for new practitioners, “To Utilize the FASF’s Guides to thePreparation of Annual Securities Reports and Quarterly Reports”
In addition to its regular seminars focusing on changes in requirements to be considered in thepreparation of securities reports, the FASF started a new series of seminars in December 2011
targeted at new practitioners of financial disclosures. The third and most recent seminar sessions
were held on September 13, 2013 in Osaka and on September 17, 2013 in Tokyo.

The seminars

were well received by participants with approximately 450 attendees joining the seminars this year.
The seminar is designed to help participants become familiar with the use of the FASF’s “Guide tothe Preparation of Annual Securities Reports” and “Guide to the Preparation of Quarterly Reports.”
It focuses on ‘fundamentals of disclosure,’ such as relevant regulations and related systems,
targeting mainly at those who are in their first or second year of disclosure practice.

DateLocation

Venue

September 13, 2013

Osaka

Osaka International Convention Center

September 17, 2013

TokyoBellesalle Hanzomonpg. 8Copyright© ASBJ/FASF All Rights Reserved.

“ASBJ Newsletter” (No. 35)
Issued on November 20, 2013
The views expressed in ASBJ Newsletter are not necessarily those of the ASBJ or the FASF. TheAuthors and Publishers accept no responsibility for any loss or damage resulting from reliance on theviews expressed herein.
© Copyright, ASBJ/FASF All Rights Reserved
Website: https://www.asb.or.jp/asb/index_e.jsp
E-mail: planning@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)

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