May 16, 2005
Financial Services Agency, Japan

Participation in Open Hearing on CESR's Draft Technical Advice on Equivalence of Certain Third Countries' GAAP

  1. A delegation of the Financial Services Agency will visit Paris on May 18, 2005, together with a delegation of three Japanese private organizations (Accounting Standards Board of Japan, Japanese Institute of Certified Public Accountants and Nippon Keidanren (Japan Business Federation)), and participate in the open hearing on the CESR's (Committee of European Securities Regulators) draft technical advice on equivalence of certain third countries' GAAP, which is to be held by the Operational Group in the area of endorsement and enforcement of financial reporting standards in Europe (CESR-Fin).
  2. Third country issuers (non-EU issuers), who have their securities admitted to trading on an EU-regulated market or who wish to make public offerings of their securities in Europe, will be required, as from January 1, 2007, to prepare their financial statements in accordance with either EU-endorsed IAS/IFRS or the third country GAAP equivalent to EU-endorsed IAS/IFRS. The European Commission (EC) will decide whether the certain third country GAAP (i.e., Japanese GAAP, US GAAP and Canadian GAAP) is equivalent to IAS/IFRS by the end of 2005 or early 2006.
  3. The CESR will deliver a technical advice to the EC on the matter of equivalence between these certain third countries' GAAP and IAS/IFRS by June 30, 2005. As a step in preparing its advice, the CESR published the ''Draft Technical Advice on Equivalence of Certain Third Country GAAP and on Description of Certain Third Countries Mechanisms of Enforcement of Financial Information'' on April 27, 2005, which is open for public comments from interested parties. The CESR Draft Technical Advice states that these third countries' GAAP, taken as a whole, are equivalent to IAS/IFRS, subject to certain remedies.
  4. The purpose of our participation in the CESR open hearing is to express our views on the Draft Technical Advice toward the elimination or reduction of remedies concerning Japanese GAAP, as a part of the process toward recognition of equivalence of Japanese GAAP with IAS/IFRS.
(Reference 1) PDFParticipants from Japan (PDF:43K)
(Reference 2) PDFPress Release of CESR on the Draft Technical Advice on Equivalence of Canadian, Japanese and US GAAP (PDF:91K)


Financial Services Agency, Japan (Tel:+81-(0)3-3506-6000)
Naohiko Matsuo (ex.3189)
Director for International Financial Markets
Tsuyoshi Mizutani (ex.3656)
Deputy Director, Office of Corporate Accounting and Disclosure

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