Revision of "Q&A on Auditing Treatment in the Determination of Scope of Subsidiaries and Affiliates in Consolidated Financial Statements"
JICPA announced on September 2, 2008, the revision of "Q&A on Auditing Treatment for the Determination of Scope of Subsidiaries and Affiliates in Consolidated Financial Statements". This is to correspond to the revision of Audit Committee Statement No. 52. The Implementation Guidance on determining a subsidiary and an affiliate, which was released on May 13, 2008 by Accounting Standard Board of Japan (ASBJ) clarified the treatment in cases where an investing entity, including a venture capital organization, has effective control over other company's decision-making body. In order to respond to this implementation guidance an additional question and answer document was provided.
This document is available in Japanese only.