Japan Proposes to Remove Time Limit for US Accounting Rules

In line with recent developments and following an announcement of the Japanese Minister for Financial Services made in June 2011, the Financial Services Authority of Japan (FSA) yesterday proposed a draft regulation on the use of US GAAP in Japan that would extend the current option to use US GAAP beyond 2016.

In December 2009, the FSA adopted Cabinet Ordinances allowing the voluntary application of IFRS starting from the fiscal year ending 31 March 2010 and prohibiting the use of US GAAP starting from fiscal years ending after 31 March 2016. The draft regulation proposed yesterday would revoke the part of the December 2009 Cabinet Ordinances that prohibit the use of US GAAP after 2016.