March 7, 2008
Financial Services Agency

The Fourth Japan-EU Monitoring Meeting
on Developments in Accounting and Auditing Issues
March 3, 2008, Tokyo

The Fourth Japan-EU Monitoring Meeting on Developments in Accounting and Auditing Issues was held in Tokyo on March 3, 2008. The meeting was co-chaired by Mr. Junichi Maruyama, Deputy Commissioner for International Affairs of the Financial Services Agency, and by Mr. Pierre Delsaux, Director, Directorate-F of DG Internal Market and Services of the European Commission (EC). A number of officials participated in the meeting from both sides.

On the accounting standards, both parties agreed that, with regard to CESR advice on the equivalence issues, the holistic approach and its assessment on Japanese GAAP were constructive. They expressed their hope that a mutually satisfactory solution be reached during this year.As regards International Accounting Standards Commity Foundation (IASCF), both parties shared the view that there was an urgent need to improve the governance over the standard setting process of the International Accounting Standards Board (IASB), and agreed to provide regulators' inputs to the ongoing Constitution review process.

On auditing, both parties discussed the developments in their respective public oversight regime, particularly the recent EC proposal on transitional measures for third country auditors, as well as the proposed Japanese regulation on oversight of foreign auditors.

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 around mid-2008.