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ASBJ urges FASB to wait for IASB with changes to revenue recognition requirements

  • ASBJ (Accounting Standards Board of Japan) Image

03 Jul 2015

The Accounting Standards Board of Japan (ASBJ) has responded to the proposed revenue ASU on licensing and identifying performance obligations the FASB published for comment in May.

In its comment letter, the ASBJ states that it finds some of the proposals useful and believes they would help entities avoid significant practical challenges when implementing the new revenue recognition requirements while also maintaining the usefulness of the resulting financial information. However, the ASBJ stresses that it is important that the FASB and the IASB try to remain converged on the requirements. Therefore, the ASBJ urges the FASB not to continue with these amendments and finalise them until "after the FASB sufficiently consult with the IASB on the optimal scope and contents of possible changes to the two standards". The IASB's proposed clarifications to IFRS 15 are currently expected for the third quarter of 2015.

US GAAP are one set of accounting standards for consolidated financial statements in Japan. The others are the newly issued Japan’s Modified International Standards (JMIS), designated IFRSs (IFRS as issued by the IASB), and Japanese GAAP.

Please click to access the comment letter on the ASBJ website.

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