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Revision of Accounting Practice Committee Statements

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.
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