Representatives of the Financial Accounting Standards Board
and the Accounting Standards Board of Japan Hold Biannual Meeting
Representatives of the Financial Accounting Standards Board (FASB) and the Accounting Standards Board of Japan (ASBJ) held a regularly scheduled meeting on March 29-30, 2021. The meeting was the 29th in a series of biannual meetings between the FASB and the ASBJ to further the Boards’ cooperative efforts to develop high-quality global accounting standards. As same as the previous meeting, the meeting was held as a virtual meeting due to the novel coronavirus (COVID-19) pandemic.
At this meeting, representatives of the FASB and the ASBJ provided updates on their respective activities, including the response to the COVID-19 pandemic’s effects, and discussed agenda items in which both Boards have interest, such as the accounting for goodwill, the accounting for leases, and the rate regulated activities.
The FASB and the ASBJ plan to continue to exchange views. The next meeting is planned in the second half of 2021.
Richard R. Jones, Chair of the FASB, stated, “The ongoing partnership between the ASBJ and the FASB continues to produce valuable insights into key standard-setting issues of mutual interest. These discussions are particularly important as the Boards navigate financial reporting issues during the worldwide COVID-19 pandemic. Our virtual meetings allow us to continue to share our research on goodwill, leases, and other financial reporting issues to help us arrive at solutions that best serve the needs of our respective stakeholders and the global capital markets during this unprecedented time.”
Atsushi Kogasaka, Chair of the ASBJ, stated, “Although this meeting was also held as a virtual meeting due to the COVID-19 pandemic, I am pleased that we were able to deepen our mutual understanding of both Boards. We had informative discussions on a wide variety of issues over the two days, including the accounting for goodwill which has been the subject of international discussions and has been attracting a high level of interest at both Boards. I believe that it is important to contribute to improving the quality of global accounting standards in order to ensure transparency in capital markets even under difficult situations such as the COVID-19 pandemic.”
Kenji Arai, Project Manager, Accounting Standards Board of Japan
Christine L. Klimek, Senior Manager, Communications, Financial Accounting Foundation/Financial Accounting Standards Board
About the Accounting Standards Board of Japan (ASBJ)
The Accounting Standards Board of Japan (ASBJ) was established in July 2001 as a private-sector organization. Accounting standards developed by the ASBJ are to be authorized by the Financial Services Agency as part of generally accepted accounting principles. The ASBJ develops accounting standards and implementation guidance that appropriately reflect the environment in which business enterprises operate. The ASBJ also communicates with corresponding organizations abroad and contributes to the development of global accounting standards. For more information about the ASBJ, visit its website at: https://www.asb.or.jp/en.
About the Financial Accounting Standards Board (FASB)
Established in 1973, the FASB is the independent, private-sector organization, based in Norwalk, Connecticut, that establishes financial accounting and reporting standards for public and private companies and not-for-profit organizations that follow Generally Accepted Accounting Principles (GAAP). The FASB is recognized by the Securities and Exchange Commission as the designated accounting standard setter for public companies. FASB standards are recognized as authoritative by many other organizations, including state Boards of Accountancy and the American Institute of CPAs (AICPA). The FASB develops and issues financial accounting standards through a transparent and inclusive process intended to promote financial reporting that provides useful information to investors and others who use financial reports. The Financial Accounting Foundation (FAF) supports and oversees the FASB. For more information, visit www.fasb.org.