What's New (May, 2009)

May 29,2009

JICPA issued, on April 27, 2009, the Law and Regulation Committee Research Report No. 10 "An engagement letter for assurance engagements of financial information", and No. 11 "An engagement letter for audits and reviews" both related to various services provided by CPAs and audit corporations.
These two reports were intended to reorganize the past research reports on the subject.
These documents are available in Japanese only.

May 29,2009

JICPA issued, on April 21, 2009, amendment to the following practical guidelines:

• Audit and Assurance Practice Committee Statements No. 74 "Disclosure of the Going Concern Assumption";

• Auditing and Assurance Practice Committee Statement No. 75 "Practical Guideline on Preparation of Auditor's Report";

• Auditing and Assurance Practice Committee Statement No. 76 "Audit Treatment concerning Subsequent Events";

• Auditing Standards Committee Statement No. 22 "Auditor's Consideration of the Going Concern Assumption";

• Auditing Standards Committee Statements No. 3 "Management Representation Letter";

• Auditing Standards Committee Statements No. 25 "Auditor's Communication with the Corporate Statutory Auditor, the Board of Corporate Statutory Auditors or the Audit Committee";

• Auditing Standards Committee Statements No. 27 "Audit Planning";

• Auditing Standards Committee Statements No. 28 "Audit Risk".

Business Accounting Council (BAC), an advisory body established within the Financial Services Agency, issued pronouncements, on April 9, 2009 "On the Revision of the Auditing Standards", which amended provisions concerning the going concern assumption. JICPA's practical guidelines were amended to conform to the BAC's amended Auditing Standards. These amendments are effective for the fiscal year ending on or after March 31, 2009.
These documents are available in Japanese only.

May 29,2009

The Committee of Accounting Guidelines for Small and Medium-sized Entities amended "The Accounting Guidelines for Small and Medium-sized Entities", and released them on April 17, 2009. This committee was established by JICPA, the Japan Federation of Certified Public Tax Accountants' Associations, the Japan Chamber of Commerce and Industry, and the Accounting Standards Board of Japan (ASBJ).
Since the previous amendment of these guidelines, the ASBJ has issued or amended a number of accounting standards. Of these, ASBJ Statement No. 15 "Accounting Standard for Construction Contracts" was addressed in the 2009 edition.
The guidelines are available in Japanese only.

May 29,2009

JICPA issued, on April 14, 2009, the Ethics Committee Statement No. 4 "Interpretive guidance for Professional Ethics No.3". The statement sets forth interpretation of provision of non-audit services to audit clients, such as services defined as professional advice and guidance as part of audit engagements, advice and guidance for conversion of financial statements in Japanese into English, and advice and guidance in preparing consolidated financial statements and statement of cash flows.
This document is available in Japanese only.

May 29,2009

JICPA set up an IFRS Desk, on April 1, 2009, which undertakes activities such as collecting and disseminating information on International Financial Reporting Standards (IFRS) for JICPA members, with the view to the potential implementation of IFRS in Japan.
IFRS Desk will implement IFRS-related activities including, among other things, providing updated information on IFRS and other developments related to IASB and IFRS around the world, planning and implementing training and education of IFRS, and enhancing collaboration with the relevant organizations.