Issued March 20, 2014 (No. 37)

Contents
1. New ASBJ Pronouncements (released between December 1, 2013 and January 31,2014)
2. Overview of ASBJ Meetings (277th – 280th Meeting)
3. ASBJ’s Comment Submissions to the IASB (December 1, 2013 – January 31, 2014)
4. The Accounting Standards Advisory Forum (ASAF) Meeting held in London
5. ASBJ and EFRAG Hold Bilateral Meeting in Tokyo

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1. New ASBJ Pronouncements (released between December 1, 2013 andJanuary 31, 2014)(1) [Final] Release of PITF No.30 Practical Solution on Transactions of Delivering the Company’sOwn Stock to Employees etc. through Trusts (December 25, 2013)[Legend]
ED: Exposure Draft
Final: Statement/Guidance etc. (final version)

2. Overview of ASBJ Meetings (277th – 280th Meeting)(1) 277th Meeting (held on December 12, 2013)
a. Agenda item recommendations from the Standards Advisory Council
b. Responses to agenda item recommendations from the Standards Advisory Council
c. Report on the December 2013 Accounting Standards Advisory Forum (ASAF)
d. Responses to the IASB’s Discussion Paper A Review of the Conceptual Framework for
Financial Reportinge. Progress of the Working Group for Endorsement of IFRSs
f. Discussion on practical solutions for transactions that deliver the company’s own stock throughtrustsa.

The Standards Advisory Council recommended three agenda items: (1) relocation of accounting
related parts of “the auditing treatment on determining the recoverability of deferred tax assets”(the JICPA Audit Committee Report No.66) as well as other practical guidelines relating toaccounting for deferred taxes, from the JICPA to the ASBJ,(2) consideration of the accounting

treatment for the scheme in support of investments in advanced technology equipment usingleases, and (3) consideration of the treatment for contingent consideration for an acquisition underthe Accounting Standard for Business Combinations.
b.

The Board discussed the three agenda recommendations from the Standards Advisory Council,
and then decided to take up them as new agenda items.

c.

An outline of the discussions at the meeting of the ASAF held in London on December 5 and 6,
2013 was presented.

d.

The Board discussed its draft comments on the IASB’s Discussion Paper A Review of theConceptual Framework for Financial Reporting.

e.

The Board reviewed the progress made by the Working Group for Endorsement of IFRSs(Working Group) in the selection of ‘possible items for consideration’ as well as in the detailed
pg. 2Copyright© ASBJ/FASF, All Rights Reservedanalysis of some items.
f.

With the aim of finalizing the PITF, the Board reviewed changes made to the draft PITF reflecting
the discussions undertaken during the previous Board meeting.
(2) 278th Meeting (held on December 25, 2013)
a. Accounting treatments for the scheme in support of investments in advanced technologyequipment using leases
b. Release of PITF Practical Solution on Transactions of Delivering the Company’s Own Stock toEmployees etc. through Trusts [approval for release]c. Responses to the IASB’s Discussion Paper A Review of the Conceptual Framework for Financial
Reportingd. Progress of the Working Group for Endorsement of IFRSsa.

At the 277 Meeting, the Board decided to take up as an agenda item the accounting treatments forthe scheme in support of investments in advanced technology equipment using leases, following
the agenda recommendation from the Accounting Advisory Council. At this meeting, the Board
had a discussion after being presented with the progress made by the Lease Accounting TechnicalCommittee as well as the outline of the scheme.

b.

The Board had a final discussion and proceeded to vote on the release of the final PITF, after
being presented with a summary of discussions conducted to date relating to the PITF Practical
Solution on Transactions of Delivering the Company’s Own Stock to Employees etc. throughTrusts.

All Board members present at the meeting approved the release of the final PITF, subject

to minor editorial changes being left to the Chairman.
c.

The Board discussed its draft comments on the IASB’s Discussion Paper A Review of theConceptual Framework for Financial Reporting.

d.

The Board reviewed the discussions at the 6th Meeting of the Working Group on responses tocomments from the Working Group and the Financial Instruments Technical Committee on‘possible items for consideration’, which were originally presented at the 4th Meeting of theWorking Group.
(3) 279th Meeting (held on January 10, 2014)
a. Response to the IASB’s Discussion Paper A Review of the Conceptual Framework for Financial
Reportingb. Updates on the IASB’s progress on impairment of financial assets
c. Progress of the Working Group for Endorsement of IFRSs
d. Establishment of the Technical Committee for Deferred Tax Accountinga.

The Board discussed its draft comments on the IASB’s Discussion Paper A Review of theConceptual Framework for Financial Reporting.
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b.

The Board reviewed the IASB’s developments on impairment of financial assets, after being
presented with an outline of the IASB’s redeliberations after it received comments on its Exposure
Draft Financial Instruments: Expected Credit Losses, as well as the discussions by the Financial
Instruments Technical Committee of the ASBJ.

c.

The Board reviewed the progress made by the Working Group on the detailed analysis of ‘possible
items for consideration.’d.

The Board approved the establishment of the Technical Committee for Deferred Tax Accounting,as well as the selection of the chairman and members of the technical committee.
(4) 280th Meeting (held on January 27, 2014)a. Accounting treatments for the scheme in support of investments in advanced technology
equipment using leases
b. Updates on the IASB’s progress on its Leases projectc. Updates on the IASB’s progress on its Financial Instruments projectd. Discussion on how the Technical Committee for Deferred Tax Accounting should proceeda.

The Board reviewed the draft, after being presented with a draft PITF on the accounting
treatments for the scheme in support of investments in advanced technology equipment using
leases, which reflected the discussion by the Lease Accounting Technical Committee.

b.

The Board reviewed the IASB’s developments on its Lease project, after being presented with an
outline of the IASB’s redeliberations since the receipt of comments on its Exposure Draft Leases.

c.

The Board reviewed the IASB’s developments on its Financial Instruments project, after being
presented with an outline of the IASB’s redeliberations after it received comments on its Exposure
Draft Classification and Measurement: Limited Amendments to IFRS 9 and Exposure Draft
Financial Instruments: Expected Credit Losses, as well as the discussions by the FinancialInstruments Technical Committee of the ASBJ.

d.

At the 277th Meeting, the Board decided to take up the accounting for deferred taxes as a newagenda item.

At this meeting, the Board discussed how the Technical Committee for Deferred

Tax Accounting should proceed with the project.

3. ASBJ’s Comment Submissions to the IASB (December 1, 2013 – January 31,2014)(1)

The ASBJ submitted its Comments on the Discussion Paper A Review of the Conceptual
Framework for Financial Reporting to the IASB (January 31, 2014)

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4. The Accounting Standards Advisory Forum (ASAF) Meeting held in London
The Accounting Standards Advisory Forum (ASAF) Meeting was held in London on December 5and 6, 2013. The ASAF was established in April 2013 to provide technical advice to the IASB, andit consists of twelve organizations, including the ASBJ.

The meeting was attended byrepresentative of eleven originations, as well as IASB Chairman Hans Hoogervorst, Vice Chairman
Ian Mackintosh, and a number of IASB Board Members and Staff members.
represented by Chairman Ikuo Nishikawa.

The ASBJ wasFor discussions in relation to the Conceptual

Framework, the ASBJ prepared an agenda paper, Profit or Loss/OCI and Measurement, which waspresented by Chairman Nishikawa during the ASAF Meeting.
During the meeting, active discussions were conducted on the following topics:z

Conceptual Framework (Stewardship/Accountability, and Reliability)z

Conceptual Framework (Liabilities)z

Conceptual Framework (Profit or Loss and OCI, and Measurement)z

Post-implementation Review of IFRS 3 Business Combinationsz

Rate-regulated Activities

zLeases

The next meeting is scheduled for March 3 and 4, 2014 in London.

5. ASBJ and EFRAG Hold Bilateral Meeting in Tokyo
Representatives of the Accounting Standards Board of Japan (ASBJ) and the European Financial
Reporting Advisory Group (EFRAG) met on 21 and 22 January 2014, in Tokyo, Japan.
The ASBJ and EFRAG (hereafter “both parties”) have been exchanging views and information forthe development of high-quality global accounting standards. Considering the recent developments
including the creation of the Accounting Standards Advisory Forum (ASAF), both parties felt that it
would be useful to formalise the past practice of holding bilateral meetings so as to better understandviews and surroundings of each party.
At this meeting, the ASBJ and EFRAG both provided updates on their respective activities, andexchanged views on the opportunities for cooperation between the two parties as well as among theinterested parties more broadly, including major national accounting standard-setters from the world.
As for the technical topics, the ASBJ and EFRAG discussed respective views on the International
Accounting Standards Board (IASB)’s major projects including the Conceptual Framework,
Financial Instruments, Leases and Insurance Contracts. In addition, the ASBJ and EFRAG discussed
how they can work together more effectively on research activities including the topic of impairment
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and amortisation of goodwill on which both parties and the Organismo Italiano di Contabilità (OIC)
have worked together.
Both parties agreed that they would continue to exchange views on issues faced and potential future
concerns and confirmed that the next meeting will be held in Brussels.

“ASBJ Newsletter” (No. 37)
Issued on March 20, 2014
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 theviews expressed herein.
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