Specific elements of the agreement, as noted in the Press Release
(PDF 17k) include:
- Identify and assess differences in existing standards on the basis of the boards' respective conceptual frameworks or basic philosophies with the aim of reducing those differences where economic substance or market environments such as legal systems are equivalent.
- Address the differences in their respective conceptual frameworks at a future time to be agreed by the boards.
- The boards will consider their respective due process requirements in arriving at agreement.
- The ASBJ will undertake a study to get an overall picture of major differences between Japanese accounting standards and IFRSs and will identify topics to be discussed.
- Adopt a phased approach to the comparative reviews of differences in individual standards.
- The scope of the first phase is standards in place as of 31 March 2004, excluding the following topics, which will be addressed in subsequent phases:
- standards under review or intended to be reviewed in the joint projects between the IASB and the US Financial Accounting Standards Board (FASB).
- standards that are divergent owing to differences in the respective conceptual frameworks or basic philosophies.
- standards recently developed.
- standards whose requirements are subject to legal restrictions or those currently considered inapplicable in Japan.