Business Accounting Council of Japan Continued its Discussion over IFRS
Following on from the meeting on 25 August 2011, the Business Accounting Council of Japan (BAC) met on 17 October for the third time to move discussions on IFRS forward. During his opening remarks, the Japanese Minister for Financial Services mentioned his meeting with the chairman of the IASB from early October and requested BAC members to continue discussions around 11 specific items presented at the previous meeting (see our earlier story). Among these items, JFSA presented a discussion paper on 1) overall design of accounting standards/disclosure system in Japan and 2) analysis of foreign situations/diplomatic policy and international demand. The six-page paper included an analysis as well as six discussion points such as a) consideration points for future deliberation in light of changing financial/economic environment after the financial crisis, b) need for a strategic deliberation with diverse options in mind, watching situations in other countries, c) past and future approach/strategy with regard to the IASB activities and positioning of Japan, d) roles of multiple stakeholders in Japan to implement national strategy, e) matters to be covered in the planned research visit to foreign countries, and f) other matters such as international developments to be considered. Members expressed their views around topics individually. The discussions on this topic would be carried forward to the next meeting. The next meeting is expected to take place in November, it will also cover the second discussion paper distributed by the JFSA focusing on relationship between consolidated financial statement reporting regime to separate financial statement reporting system in light of local laws and regulations as well as Japan’s past experience of permitting US GAAP and IFRS only in the consolidated financial statement.
The next session of the BAC has not been formally scheduled. Research visits by certain BAC members are planned later in 2011.