Securities Analyst Association of Japan reconfirms support for move to IFRSs
Apr 19, 2012
The Business Accounting Council of Japan (BAC) met on 17 April to continue its deliberations over the use of IFRSs in Japan. Principal topics discussed were 1) investors-issuer communication and 2) impact on regulatory environment. No decisions were made during this session.
On topic 2), a bank representative explained potential impacts of IFRsS on loan covenants that are based on reported financial figures such as net assets. He pointed out that banks will have to respond appropriately as there will be a need for contract amendments to certain extent.
In addition to the above two topics, the Financial Services Agency of Japan reported the results of its own survey with regard to the use of IFRS around the world.
The handouts for the meeting (in Japanese only) are available on the FSA website.
The next session, which is expected to cover the rest of topic 2) above and voluntary early adoption situation, is yet to be scheduled. The voluntary early adoption is the last one among the 11 specific aspects to be discussed that were identified in the BAC paper of August 2011.