May 27, 2005
Financial Services Agency, Japan

FSA's Comments on CESR's Draft Technical Advice on Equivalence of Certain Third Countries' GAAP

  1. The Financial Services Agency (FSA) sent a comments letter on May 27, 2005, regarding the ''Draft Technical Advice on Equivalence of Certain Third Countries' GAAP'', which was published on April 27, 2005, by the Committee of European Securities Regulators (CESR).
  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 a 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 until May 27, 2005. The FSA participated in the open hearing, which was held by the CESR on May 18, 2005, together with a delegation of Japanese private organizations.
  4. The FSA sent a comments letter regarding the aforementioned draft paper 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 between Japanese GAAP and IAS/IFRS with close cooperation between interested parties in Japan.


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

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