FASB and the ASBJ Meet for a Chat

Similar to the International Accounting Standards Board (the “IASB”), on a regular basis, the Financial Accounting Standards Board (the “FASB”) meets with standard-setters from other jurisdictions to discuss issues of mutual interest.  For example, last week, representatives from the FASB met with representatives from the Accounting Standards Board of Japan (the “ASBJ”).

Similar to the FASB, in 2007, the ASBJ  entered into a formal agreement, called the “Tokyo Agreement”, with the IASB to promote convergence of Japanese GAAP with IFRS.  The press release from that meeting states (http://www.ifrs.org/NR/rdonlyres/A665336F-A1A5-4CC5-80A8-2FDABF7D773B/0/ASBJIASB.pdf):

“In the light of the growing acceptance of IFRSs by major economies throughout the
world, the ASBJ and the IASB agree that the acceleration of convergence of Japanese
GAAP and IFRSs is the strategic priority of their joint convergence efforts. Consistently
with this objective, the ASBJ and the IASB have agreed to pursue the strategy outlined
below, which includes defined target dates for short-term and longer-term convergence
projects. In pursuing this strategy, the ASBJ and IASB recognise the need to consult
interested parties, including regulators, and to follow their respective due process
requirements for the development of accounting standards.”

Sounds a lot like the FASB and IASB convergence approach.

So the ASBJ and the FASB are both working towards global convergence with the IASB.  Given their common convergence interests, it’s no surprise that, the Boards might benefit from an occasional chat.  According to the FASB website (http://www.fasb.org/cs/ContentServer?site=FASB&c=FASBContent_C&pagename=FASB%2FFASBContent_C%2FNewsPage&cid=1176159796208), the meeting focused on:

  1. Their convergence activities with the IASB,
  2. The ASBJ’s comments on the IASB’s 2011 “Agenda Consultation” activities, and
  3. Several thorny accounting convergence topics of mutual interest, such as hedge accounting, revenue recognition, and lease accounting, among others.

The meeting concluded with an agreement to meet in Tokyo later in 2012.

About docjonz

I am an Associate Professor of accounting at Hofstra University in Hempstead, NY. Additionally, I have more than 30 years of professional accounting experience in various capacities including auditing, accounting standard setting and corporate accounting policy.
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