Business Accounting Council of Japan Resumes Discussions on IFRSs
The BAC of Japan recently met to once again begin its discussion around using the International Financial Reporting Standards in the country. This was the Business Accounting Council of Japan’s first meeting, post the issue of the temporary discussion related paper on the 2nd of July. However, no general agreement was reached during the meeting.
At the meeting, the Business Accounting Council of Japan members analyzed and exchanges opinions, views and suggestions on developments pertaining to International Financial Reporting Standards since its last meeting in the month of June. Some of the issues that were analyzed include, the final and finished report issued by the United States SEC staff members on 2nd July, recent activities of the International Accounting Standards Board as well as the responses received with regard to IFRS IC/IASB due procedure handbook.
While discussing the course for future, an official from FSA stated that issue that have been identified in the temporary discussion related paper will be contemplated in future. These issues basically included identification of non-acceptable and acceptable requirements in International Financial Reporting Standards and gathering of voluntary utilization of IFRS that further results in evaluation of advantages and problems in utilizing of IFRS etc. The FSA official also clarified that increased understanding of the impact of IFRS in nations such as Korea and Canada that have already adopted the standards will also be acquired.
The thirteen page discussion paper designed after Business Accounting Council of Japan’s meeting covered numerous topics. The paper emphasized the need for continuing efforts towards creating single global accounting standards and further building upon the existing superior quality and globally recognized state of Japan’s Generally Accepted Accounting Principles. The paper emphasized that the ideal approach of utilizing IFRS should be designed on the basis of a number of aspects. The members of the BAC of Japan also reinstated that the newly developed accounting principles/standards utilized for consolidated statements could be contrasting from the Japan’s Generally Accepted Accounting Principles used in different statements. In addition to this, they also emphasized that International Financial Reporting Standards shouldn’t affect accounting conducted by non-public SMEs. The report also mentioned that it is crucial to contribute towards the development of International Financial Accounting Standards as well as to communicate Japanese view/opinion as appropriate.