Press Conference by the Commissioner

(Excerpt)

19 August, 2002

Q.

Although the Financial Services Agency is now taking various measures to boost activity levels in the stock market, Nasdaq of the United States and the Osaka Securities Exchange (OSE) have announced that they will cancel the partnership for the joint operation of the Nasdaq Japan stock market. This means the Nasdaq Japan stock market will be virtually closed down. What do you think about it?

A.

I think it is no surprising that anything will happen in an increasingly competitive global market. The Financial Services Agency has announced the plan of drastic reform of the stock market, and we are carrying out the plan now.

Commenting on the Nasdaq Japan stock market, the actual operation of the market has been performed by the OSE and I am told that the OSE will continue to do so in the future. I don't think (the termination of the Nasdaq Japan stock market) will inconvenience any companies listed on the market as well as investors.

Q.

As to accounting standards for impairment of assets such as real estate proposed in the opinion paper published the week before last, what do you personally think about such accounting standards?

A.

The accounting standards proposed by the Business Accounting Council falls within the accounting standards generally considered to be fair and reasonable. I therefore, think the new accounting standards should apply as such fair and reasonable accounting standards according to the opinion paper issued by the Business Accounting Council.

The new accounting standards can be adopted on a voluntary basis from fiscal 2003, and are planned to be mandatory from fiscal 2005.

Q.

There are some voices that introduction of such new accounting standards should be postponed or more discussed. What do you think about these opinions?

A.

I think all accounting standards should be well examined by specialists and then be decided as fair and reasonable rules. In that sense, the new accounting standards will be introduced in accordance with the proposal by the Business Accounting Council.