Issued March 19, 2013 (No. 31)

Contents

1. New ASBJ Pronouncements (released between December 1, 2012 andJanuary 31, 2013)
2. Overview of ASBJ Meetings (256th Meeting – 258th Meeting)
3. ASBJ’s Comment Submission to the IFRS Foundation and the EFRAG(December 1, 2012 – January 31, 2013)
4. Appointment of ASBJ Board Member
5. Appointments of FASF Director and Managing Director
6. Appointments of Chairs and Members of Committees

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1. New ASBJ Pronouncements (released between December 1, 2012 andJanuary 31, 2013)(1) [ED] Release of Exposure Drafts of Accounting Standards for Business Combinations and relatedmatters (January 11, 2013)
The comment deadline is March 15, 2013.

[Legend]
ED: Exposure Draft
Final: Statement/Guidance etc. (final version)

2. Overview of ASBJ Meetings (256th Meeting – 258th Meeting)(1) 256nd Meeting (held on December 12, 2012)
a. Discussion on Business Combinations (Step 2)
b. Discussion on comments to the IFRS Foundation’s Proposal to Establish an AccountingStandards Advisory Forumc. Discussion on responses to theme proposals from the Standards Advisory Councild. Approval of changes in Chairs and Members of the technical committeesa.

The Board discussed whether it should require retrospective application of the amendments andwhen the effective date should be.
The Board considered requiring retrospective application in principle, but allowing prospective
application on the condition that the fact be disclosed.
The Board also considered starting the mandatory application period from April 1, 2015.

b.

The Board discussed how to respond to the IFRS Foundation’s Invitation to Comment Proposal toEstablish an Accounting Standards Advisory Forum, issued on November 3, 2012.
The Invitation to Comment states that the role of the proposed Forum is “to provide advice andviews to the IASB on major technical issues related to its standard-setting activities and to provide
input on national and regional issues”. It also proposes to formalize the relationship between theIASB and national standard setters in the IFRS standard setting process.

c.

The Board agreed to take up an agenda item ‘scheme of granting a company’s own shares to its
employees through a trust’, following the proposal from the Standards Advisory Council.

d.

Changes in Chairs and Members of the technical committees were approved.

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(2) 257th Meeting (held on December 25, 2012)
a. Discussion on responses to the EFRAG discussion paper on Disclosure Frameworkb. Exposure Draft Accounting Standards for Business Combinations and related matters [approvalfor release]c. Discussion on Accounting Standard for Intangible Assets
d. Progress of the Technical Committee for Financial Instrumentsa.

The Board discussed draft comments on the EFRAG’s discussion paper on disclosure framework.

b.

The Board voted to approve the release of an exposure draft, Accounting Standards for Business
Combinations.
The exposure draft mainly addresses ‘treatment of non-controlling interests,’ ‘acquisition-related
costs,’ and ‘provisional accounting treatment.’ The comment period for the ED ends on March
15, 2013.

c.

Following the staff’s presentation on the result of a study of the issues relating to ‘identification ofintangible assets acquired in business combinations’ (i.e. whether an entity should strictly
distinguish intangible asset from goodwill at the time of the business combination) and ‘separatelyacquired in-progress research and development projects,’ the Board discussed the topics.
At future meetings, the Board will discuss the issues, mainly focusing on the costs and benefits ofidentifying and valuing intangible assets.

d.

Staff provided an overview of the IASB’s Exposure Draft Classification and Measurement:
Limited Amendments to IFRS 9. Staff also provided an update on the progress of the TechnicalCommittee for Financial Instruments.

(3) 258th Meeting (held on January 10, 2013)a. Discussion on responses to the EFRAG discussion paper on Disclosure Frameworkb. Discussion on Accounting Standard for Intangible Assets
c. Progress of the Technical Committee for SPEs and ConsolidationaThe Board discussed draft comments on the EFRAG’s discussion paper on the disclosureframework.

b.

The Board reviewed the benefits of identifying and valuing intangible assets in accordance withUS GAAP/IFRS.
Views expressed by the Board members included: “identifying individual intangible assets would
enable more reasonable estimation of amortization periods, compared to recognizing only
goodwill, as is the current practice in Japan” and “it would enable users to better understand anpg. 3
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entity’s strategy relating to business combinations, and would help to ensure the entity isaccountable.”c.

The Board discussed how to proceed with the project relating to the Technical Committee forSPEs and Consolidation.

3. ASBJ’s Comment Submission to the IFRS Foundation and the EFRAG(December 1, 2012 – January 31, 2013)(1)

ASBJ submitted its Comment on the Invitation to Comment Proposal to Establish anAccounting Standards Advisory Forum (December 17, 2012)(2)

ASBJ submitted its Comment on Discussion Paper Towards a Disclosure Framework for theNotes (January 18, 2013)

4. Appointment of ASBJ Board Member
At the FASF’s Board of Directors Meeting held on December 7, 2012, Mr. Katsuhito Yanagibashi(Senior General Manager, (then) Global Accounting Planning Administration Center, Canon Inc.)
was appointed as a part-time ASBJ Board Member, pursuant to Article 57, Paragraph 1 of the FASF
Constitution (effective on December 7, 2012).
Dated December 6, 2012, Mr. Masaji Miyako stepped down as a ASBJ Board Member to become
the FASF Managing Director.

5. Appointments of FASF Director and Managing Director
At the FASF Councillors Meeting held on November 21, 2012, Mr. Masaji Miyako (former full-time
ASBJ Board Member) was appointed as a FASF Director (effective December 7, 2012).
Mr. Miyako was appointed as the Managing Director of the FASF, at the FASF Board of Directors
Meeting held on December 7, 2012.
Dated December 6, 2012, Mr. Hideo Takahashi stepped down as the Managing Director of theFASF.

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6. Appointments of Chairs and Members of Committees
At the FASF Board of Directors Meeting held on December 7, 2012, appointments of Chairs andMembers of committees approved as prescribed in Article 65-2 of the FASF Constitution were asfollows.
(New appointments are underlined)(1) Nominating and Evaluating Committee
Chair

Muneharu Otsuka

Professor, School of Commerce, Waseda University

MemberHiroyuki Iwakuma(then) Senior Executive Vice President & COO,
Tokyo Stock Exchange Group, Inc.

Member

Masakazu Kubota

Senior Managing Director, Nippon Keidanren

MemberShinichi Taniguchi

Executive Advisor, Nippon Steel & Sumitomo MetalCorporation

Member

Shozo Yamazaki

Chairman and President, The Japanese Institute ofCertified Public Accountants

MemberTsuguoki Fujinuma

Adviser, The Japanese Institute of Certified PublicAccountants(Effective on December 7, 2012)(2) Due Process Oversight Committee
Chair

Keiko Kitamura

Professor of Faculty of Commerce, Chuo University

MemberGen Ikegami

Deputy President, The Japanese Institute of Certified
Public Accountants

MemberAkiyoshi Oba

President& CEO, Tokio Marine Asset Management
Co., Ltd.

Member

Masakazu Kubota

Senior Managing Director, Nippon Keidanren

MemberNoriaki ShimazakiSpecial Adviser, Sumitomo Corporation

MemberYoshiaki Nishimura

President, Tokai Rubber Industries, Ltd.

(Effective on December 7, 2012)

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(3) Operation Supporting CommitteeChair

Ikuo NishikawaChairman, The Accounting Standards Board of Japan

MemberMasaji Miyako

Managing

Director,

The

Financial

AccountingStandards Foundation
MemberAtsushi Kato

Vice Chairman, The Accounting Standards Board ofJapan

MemberTakehiro Arai

Vice Chairman, The Accounting Standards Board ofJapan(Effective on December 7, 2012)“ASBJ Newsletter” (No. 31)
Issued on March 19, 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.
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