What's New (Jul, 2009)

July 27,2009

On June 30, 2009, the Business Accounting Council published, the "Opinion on the Application of International Financial Reporting Standards (IFRS) in Japan (Interim Report)".

The interim report highlighted that:
• It is appropriate that the use of IFRS is allowed from the fiscal year ending in March 2010, for the consolidated financial statements of certain listed companies.
• The decision regarding the mandatory use of IFRS is to be made around 2012, although the timing may be moved back or forward depending on various factors. It is important to ensure a sufficient preparation period of at least three years before the mandatory use starts. Use will become mandatory from 2015 or 2016 if the decision is made in 2012.) .

For more information on the interim report, please go to this page on the Financial Services Agency's website: http://www.fsa.go.jp/en/news/2009/20090701-1.html

July 27,2009

On June 9, 2009, JICPA issued an amendment to the following practical guidelines: Accounting Practice Committee Statement No.7 "Practical Guidelines on Accounting Standards for Capital Consolidation Procedures in Preparing Consolidated Financial Statements",
Accounting Practice Committee Statement No.9 "Practical Guidelines on Accounting Standard for Investments, Using the Equity Method",
Accounting Practice Committee Statement No.4 "Practical Guidelines on Accounting for the Translation of Foreign Currency Transactions", and
Accounting Practice Committee Statement No.14 "Practical Guidelines on Accounting Standards for Financial Instruments" and "Q&A on Accounting for Financial Instruments".

This revision was made to conform to the Accounting Standard Board of Japan (ASBJ) statement No. 22 "Accounting Standard for Consolidated Financial Statements", which was released in December 2008 by ASBJ, and other statements. The Accounting Practice Committee mainly considered matters related to the business combinations of: accounting treatment of step acquisitions, organization of the accounting treatment of goodwill and negative goodwill, translation of the goodwill of foreign subsidiaries (whose items of financial statements are presented in foreign currencies) and its amortization, revision required because of eliminating the partial fair value method (the approach that the scope of revaluation is limited to the portion that corresponds to the parent company's share in the subsidiary).

This document is available in Japanese only.

July 9,2009

July 6th is the Day of CPAs in Japan since the CPA Act was promulgated in 1948. This year, JICPA created a new award program “Grand Prize of the Day of CPAs”, in recognition for outstanding contribution during the preceding year, including:
• increasing public awareness in accounting, auditing and the CPA system; or
• enhancing the profile and recognition of CPAs.

2009 Prizes were awarded to the following peoples and organization:

Grand Prize: Mr. Tatsumi Yamada, IASB member,
for his continued contribution to the development of international accounting standards, advancements in Japanese accounting standards, as well as establishing a higher profile of Japanese CPAs in international arena through his contribution as an IASB member.



Special Prize: NHK (Japan Broadcasting Corporation) production staff of TV drama "Audit Corporation",
for its contribution to increasing public awareness in CPAs, in the auditing profession, by creating and broadcasting, for the first time, the TV drama that focused on audit corporations.

Distinguished Honorable Prize: The Late Eiichi Shiratori, Former IASC Chairman,
for his contribution to the international harmonization and convergence of accounting standards, as well as enhancing the profile of Japanese CPAs in the international arena, through his many contributions during his lifetime, including those as the Chairman of the IASC, the predecessor body of the IASB.

July 3,2009

The Business Accounting Council (BAC), an advisory body to the Commissioner of the Financial Services Agency (FSA), published the “Interim Report: Application of International Financial Reporting Standards (IFRSs) in Japan” on June 30, 2009, which marked a key step forward for Japan moving towards adoption of IFRS. The report sets out a number of milestones before deciding the application of IFRS; many of which rests with the initiatives by a private sector.
In this vein and as agreed by market constituents and supported by the FSA, today we inaugurated our initiative aiming to address major issues.
Major objectives of the IFRS Council and its committees are available:

http://www.hp.jicpa.or.jp/english/news/images/PR_090703_Eng_Final_R.pdf(PDF · 3P · 56.1KB)

http://www.hp.jicpa.or.jp/english/news/images/Appendix_Final_R2.pdf(PDF · 3P · 117.6KB)