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Chairman and President's Statement "Auditing Treatment in Measurement of Fair Value for Securitized Instruments"

November 26, 2008
On October 28, 2008, Accounting Standards Board of Japan (ASBJ) released Practical Issue Task Force (PITF) No. 25 "Practical Solution on Measurement of Fair Value for Financial Assets". Measurement of fair value for financial assets is conducted in accordance with the ASBJ Statement No. 10 "Accounting Standard for Financial Instruments" and related Implementation Guidance. This PITF reconfirms the issues that have generated many questions in measurement of fair value for financial assets in order to enhance better understanding of those Statement and Implementation Guidance. The accounting treatments and measurement of fair value of financial instruments prescribed by these Statement and Implementation Guidance are based on the same idea as in International Financial Reporting Standards (IFRS).
The JICPA published Chairman and President Release on the same day that states ASBJ's PITF reconfirms the current accounting standard and implementation guidance and requested JICPA members to reconfirm them in auditing fair value measurement and to make appropriate responses based on the circumstances.
This document is available in Japanese only.
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