What's New (Nov, 2006)

November 30,2006

The Auditing and Assurance Practice Committee announced the revision of Audit Committee Statement No.68 "Auditors' Comfort Letters to Arrangers" on September 25, 2006. The revision is applicable to letters that are submitted on or after November 1, 2006. This Statement provides guidance on writing an auditor's comfort letter to an arranger that is prepared in connection with the issuance of shares, bonds, bonds with warrants that are newly offered in Japan, or the sale of shares that have already been issued in Japan (hereinafter, "issuance of new securities"). Therefore, this Statement is not applicable to the issuance of new securities outside Japan.

November 30,2006

The Auditing and Assurance Practice Committee issued Auditing and Assurance Practice Committee Research Report No.18 "Research Report on Estimates of Audit Hours (Interim Report)" on September 25, 2006.

November 30,2006

The Auditing and Assurance Practice Committee announced the Revision of "Q&A on Determination of Scope of Subsidiaries and Others in Consolidated Financial Statements" on October 5, 2006, in order to bring its Q&A into line with PITF No.20 "Practical Solution on Application of Control Criteria and Influence Criteria to Investment Associations" issued by the Accounting Standards Board of Japan (ASBJ) on September 8, 2006. The title of this Q&A was changed to "Q&A on Audit Treatment for the Determination of Scope of Subsidiaries and Associates in Consolidated Financial Statements."

November 30,2006

The Accounting Practice Committee issued "Revision of Accounting Practice Committee Statement No.14 'Practical Guidelines on Accounting Standards for Financial Instruments' and "Revision of Q&A on Accounting for Financial Instruments" on October 20, 2006. These revisions were made because the accounting for carrying amounts of monetary liabilities including bonds was changed as a result of the issue of Accounting Standard - Statement No.10 "Accounting Standards for Financial Instruments" by the ASBJ on August 11, 2006, and the measurement of inventories was changed as a result of the issue of Accounting Standard - Statement No.9 "Accounting Standards for Measurement of Inventories" on July 5, 2006.

November 30,2006

The Auditing Standards Committee issued Auditing Standards Committee Statement No.35 "The Auditor's Responsibility to Consider Fraud in an Audit of Financial Statements" on October 24, 2006. This statement is applicable to audits for the year beginning on or after April 1, 2007, but earlier application is permitted.

November 29,2006

On November 15, 2006, The JICPA submitted comments on Exposure Drafts of International Accounting Education Standards Board (IAESB);

Proposed International Education Practice Statement "Information Technology for Professional Accountants"

JICPA's comment letter to the IAESB can be obtained at:

http://www.hp.jicpa.or.jp/english/images/e-20061115-01.pdf(PDF · 2P · 16.1KB)