Release of Project Plan – Initiatives toward international convergence of accounting standards
based on the Tokyo Agreement
December 6, 2007
Accounting Standards Board of Japan

The Accounting Standards Board of Japan (ASBJ) works on the initiatives toward international
convergence of accounting standards, based on the “Medium-Term Operating Policy” issued in June
2007.

ASBJ publishes today the new Project Plan approved at the Board meeting held on

December 6, 2007, which is based on the Tokyo Agreement on achieving convergence of accounting
standards jointly announced with the International Accounting Standards Board (IASB) in August
2007. The Project Plan is released with the aim of exhibiting the status of initiatives of the ASBJ toconstituencies in Japan and abroad.

The project plan, in accordance with the content of the Tokyo Agreement, classifies the project items
into three categories (short-term, medium-term and medium and long-term) and indicates theschedule for each item.

Items exhibited in “2. Items relating to the remaining differences(medium-term)” and “3. Items relating to MOU between IASB and FASB” are only the items thathave already been launched or clearly planned. ASBJ intends to launch several additional projects
according to need.

Based on the Project Plan, ASBJ will steadily work on initiatives toward international convergenceto high quality accounting standards.

ASBJ Project Plan
- Items related to convergence -December - 2007
2008

2007
4Q

2009
Remarks

1Q

2Q

3Q

4Q

1-2Q

3-4Q

1. Items advised by CESR for EU equivalence assessment purpose (short-term)
Business combinations (STEP1)
see note2
Pooling-of-interest method

RR/DPED

FinalOthers see note3

RR/DPED

Final

Inventories (LIFO)
Uniformity of accounting
policies(Associates)
Impairments of fixed assets
see note4

EDED

Intangibles (R&D expenses)

DP

Construction contracts

Final

Asset retirement obligations

EDFinalED

The ASBJ will deliberate this item consideringdevelopments at IASB/FASB.
The ASBJ will deliberate this item consideringdevelopments at IASB/FASB.

Final

Final

Retirement benefits

EDDisclosure of FV information offinancial instruments

Final

Investment property

Final

Final

EDTC

Final

2. Items remaining differences between Japanese GAAP and IFRSs except above (medium-term)
Segment reporting

Final

Business combinations (STEP2)
Issues for PHASE ⅡED

The final standard expected to be issued in 2010.

Amortization of goodwill

ED

The final standard expected to be issued in 2010.
This project is subject to consistencies ofFinancial Instruments and Exchange Law, etc.

Retrospective ｒestatement
Change in accounting policy

（DP）

ED

Final

Depreciation method

（DP）

ED

Final
Both ED and final standard expected to be issuedin 2010.

Discontinued operations

3. Items related MOU between the IASB and the FASB (medium and long-term)
Scope of consolidations

DP

Finacial statement presentationTCDPRevenue recognition

TCDP

Liabilities and equity distinctions

WG

Financial instruments

DP

IASB expects to issue the DP in 2nd half of2008.
IASB/FASB expect to issue the DP in 1st half of2008.
IASB/FASB expect to issue the DP in 1st half of2008.
FASB issued the DP in November 2007 and
IASB expects to issue the DP in 1st half of 2008.
IASB/FASB expect to issue the DP in 1st half of2008.

(Note1)For "2007/ 2009" column:
WG: Working Group to be established.
TC : Technical Committee to be established.
RR : Research Report to be issued.
DP : Discussion Paper to be issued.
ED : Exposure Draft to be issued.
Final: Accounting Standard/Guidance, etc.
(Note2)ASBJ will divide "Business combinations project" into STEP1 and STEP2.
STEP1 deal with the items related to EU equivalence assesment, and STEP2 take up others.
(Note3)"Business combinations-STEP1(others)" includes issues for "Date of exchange", "Negative goodwill", "Minority interests at historical cost","Step acquisitions", and Translation of goodwill".
(Note4)No schedule has been fixed at this stage, due to monitoring progress of IASB/FASB discussions.