May 30, 2008
Financial Services Agency

The Fifth Japan-EU Monitoring Meeting
on Developments in Accounting and Auditing Issues
May 26, 2008, Paris

The Fifth Japan-EU Monitoring Meeting on Developments in Accounting and Auditing Issues was held in Paris on May 26, 2008. The meeting was co-chaired by Mr. Pierre Delsaux, Director, Directorate-F of DG Internal Market and Services of the European Commission (EC) and Mr. Junichi Maruyama, Deputy Commissioner for International Affairs of the Financial Services Agency. A number of officials participated in the meeting from both sides.

On the accounting standards, both parties recognized that the recent assessment of the Commission Services on Japanese GAAP* was encouraging, and expressed their hope that a mutually satisfactory solution be reached during this year. As regards the Constitution Review of International Accounting Standards Committee Foundation, both parties shared the view that there was an urgent need to improve the governance and oversight over standards setting process of the International Accounting Standards Board, and agreed on the need of providing regulators' inputs to the ongoing review process in a timely manner.

On the auditing, both parties updated their recent developments in respective public oversight regime, including the EC's proposal on transitional measures for registration of third country auditors, as well as the recently implemented Japanese notification requirements to foreign audit firms.

The next meeting is scheduled around fall of 2008.

GAAP* : Generally Accepted Accounting Principles