9 September 2009

ASBJ and IASB reaffirm their ongoing cooperation in achieving
convergence in accounting standards
The Accounting Standards Board of Japan (ASBJ) and the International Accounting Standards
Board (IASB) have held their tenth meeting to accelerate convergence of Japanese generally
accepted accounting principles (GAAP) and International Financial Reporting Standards(IFRSs).

Led by Ikuo Nishikawa, Chairman of the ASBJ, and Sir David Tweedie, Chairmanof the IASB, the meeting took place in London on 7 and 8 September 2009.
As part of the meeting, representatives of the IASB provided an update on their ongoingproject work, in particular on those projects that form part of the convergence programme
between the IASB and the US Financial Accounting Standards Board (FASB) and on themeasures that are being undertaken by the IASB in response to the financial crisis.
Representatives of the ASBJ reported that good progress is being made towards convergenceof IFRSs and Japanese GAAP.

As outlined in the Tokyo Agreement these efforts extend toall projects on the IASB’s agenda.

Representatives of the boards also exchanged views onthe recent IASB exposure draft Financial Instruments: Classification and Measurement andthe following important items, including cross-cutting issues among IASB projects.
Other comprehensive income, and recycling/non-recycling: Cross-cutting issues
among Financial statement presentation, Financial instruments (Classification andmeasurement), and Post-employment benefits
Measurement of liabilities: Cross-cutting issues among Financial liabilities andNon-Financial liabilities (IAS37) , including own credit risk
In addition, the representatives of the ASBJ provided an overview of the Interim Report
Opinion on Application of International Financial Reporting Standards in Japan issued by

the Business Accounting Council (BAC), an advisory body to the Commissioner of the Japan
Financial Services Agency (FSA) in June this year.

The roadmap permits early adoption ofIFRSs by listed companies for fiscal years beginning 1 April 2009 and proposes mandatory
adoption of IFRSs from 2015 or 2016, with a final decision on the mandatory element being
taken around 2012.

In this context, representatives of the boards also discussed how toaddress issues relating to the implementation of IFRSs in Japan.

As a result of thesediscussions, the IASB expressed its willingness to support Japanese constituents and theASBJ in their work in addressing implementation issues.
Representatives of both boards believe that the ASBJ’s and IASB’s ongoing work towards
convergence between Japanese GAAP and IFRSs is essential for a successful adoption ofIFRSs.

The ASBJ’s continuing participation in the IASB’s standard-setting process will also

contribute to the future development of high-quality accounting standards in the medium andlong term.
Commenting on the meeting, Ikuo Nishikawa, Chairman of the ASBJ, said:
The IASB and the ASBJ again had a useful meeting that included a productive
discussion on cross-cutting issues.

The ASBJ continues to participate actively in

the international standard-setting process, including this regular meeting with theIASB.

This is also consistent with the Interim Report issued by the BusinessAccounting Council, which sets out a roadmap towards the application of IFRSs in
Japan and recommends that the ASBJ continues and accelerates the convergence ofaccounting standards.
Sir David Tweedie, Chairman of the IASB, said:
The recent approval of a roadmap for the adoption of IFRSs in Japan by the BusinessAccounting Council of Japan Financial Services Agency has been a milestone in ourefforts to establish IFRSs as the single set of generally accepted accounting principles
around the world. The joint efforts of both boards to achieve convergence as agreed in theTokyo Agreement have made an important contribution to making this development
possible.

The ongoing cooperation of the two boards will also contribute to a smooth

adoption of IFRSs in Japan and to creating high-quality IFRSs in the future.
The next meeting of the boards is scheduled for early 2010 in Tokyo, Japan.

Notes to Editors:
The Tokyo Agreement
The ‘Tokyo Agreement’, a joint declaration announced by the ASBJ and the IASB on 8August 2007, sets out an initiative to accelerate a convergence programme for IFRSs andJapanese GAAP first announced in March 2005. The aim of the initiative was to eliminate
major differences between Japanese GAAP and current IFRSs in use (as defined by the July
2005 CESR assessment of equivalence) by 2008, with the remaining differences that theboards identified being removed on or before June 2011. While the target date of 2011 does
not apply to any major new IFRSs now being developed to become effective after 2011, bothboards will work closely to ensure the acceptance of the international approach in Japan when
new standards become effective.
The Interim Report ‘Opinion on the Application of International Financial ReportingStandards in Japan’
The Interim Report ‘Opinion on the Application of International Financial ReportingStandards in Japan’ was issued on 30 June 2009 by the Business Accounting Council, anadvisory body to the Commissioner of the Japan Financial Services Agency (FSA).
A provisional English translation of the Interim Report is available at the Financial Services
Agency website at http://www.fsa.go.jp/en/news/2009/20090701-1.html

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 appropriatelyreflect the environment in which business enterprises operate. The ASBJ also communicateswith corresponding organisations abroad and contributes to the development of global
accounting standards. For more information about the ASBJ, visit the Website athttps://www.asb.or.jp/asb/top_e.do.
About the IASBThe IASB was established in 2001 and is the standard-setting body of the International
Accounting Standards Committee (IASC) Foundation, an independent, private sector,
not-for-profit organisation. The IASB is committed to developing, in the public interest, asingle set of high-quality global accounting standards that provide high-quality transparent
and comparable information in general-purpose financial statements. In pursuit of thisobjective the IASB conducts extensive public consultations and seeks the co-operation ofinternational and national bodies around the world. The Board currently has 15 full-timemembers drawn from ten countries and who have a variety of professional backgrounds. By
2012 the Board will be expanded to 16 full-time members. Board members are appointed byand accountable to the Trustees of the IASC Foundation, who are required to select the best
available combination of technical expertise and diversity of international business andmarket experience. In their work the Trustees are accountable to a Monitoring Board of publicauthorities.