December 4, 2007
Financial Services Agency
Government of Japan

The Third Japan-EU Monitoring Meeting on
Developments in Accounting and Auditing Issues

The Third Japan-EU Monitoring Meeting on Developments in Accounting and Auditing Issues was held in Brussels on November 28, 2007. Mr. Junichi Maruyama, Deputy Commissioner for International Affairs, and other representatives attended the meeting from the FSA.

The following is the result of the meeting:


The Third Japan-EU Monitoring Meeting on Developments in Accounting and Auditing Issues was held in Brussels on November 28, 2007. The meeting was co-chaired by Mr. Pierre Delsaux, Director, Directorate-F of DG Internal Market and Services of the European Commission (EC), and by Mr. Junichi Maruyama, Deputy Commissioner for International Affairs of the Financial Services Agency (JFSA). A number of officials participated in the meeting from both sides.

On the accounting standards session, the EU explained the draft equivalence-mechanism on which currently the European Parliament and the European Securities Committee are being consulted whereas Japan explained its ongoing work on convergence between the International Accounting Standards Board (IASB) and the Accounting Standard Board of Japan (ASBJ). The auditing session was devoted to issues such as recent regulatory developments and possible bilateral cooperation.

In the session on accounting,

  • The JFSA emphasised that the convergence between Japanese GAAP and IFRS was well on-track, and reiterated its expectation that Japanese GAAP needs to be assessed as equivalent with IFRS by 2009. The EC welcomed the efforts made so far and encouraged its continuation.
  • The EC explained its planned mechanism for the determination of equivalence, the timetable and the latest developments in this area.
  • Both parties expressed hope that a mutually satisfactory solution could be reached by 2009.

In the session on auditing,

  • The JFSA explained the amendment of the Certified Public Accountants Law, including the notification requirement under the revised CPA Law.
  • The EC explained its ongoing regulatory developments in EU and progress in the equivalence assessment on audit.
  • Both parties also discussed how to make progress towards mutual reliance in the area of auditor oversight.

Throughout both sessions, both parties emphasized that these discussions should be conducted with a view to maintaining openness in both markets.

The next meeting is scheduled for the early spring of 2008.

Contact

Financial Services Agency, Government of Japan
Tel +81-(0)3-3506-6000 (main)
Corporate Accounting and Disclosure Division, Planning and Coordination Bureau (ext. 3663)

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