ASBJ publishes ED of further ‘deletions or modifications’ to IFRSs

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17 Mar 2016

In June 2015, the Accounting Standards Board of Japan (ASBJ) issued "Japan’s Modified International Standards (JMIS): Accounting Standards Comprising IFRSs and the ASBJ Modifications", which covered standards and interpretations issued by the International Accounting Standards Board (IASB) as at 31 December 2012. The ASBJ has now completed consideration of IASB pronouncements as at 31 December 2013 and proposes additional 'deletions or modifications'.

JMIS constitute the fourth set of accounting standards for consolidated financial statements in Japan in addition to designated IFRSs, Japanese GAAP, and US GAAP and are part of the effort to promote the application of IFRS in Japan towards the ultimate goal of achieving a single set of high-quality global standards. The ‘deletions or modifications’ to the standards issued by the IASB may be resolved depending on future discussions in Japan and at the IASB and should, therefore, be viewed as transitional treatments. (Currently, no company applies JMIS yet.)

The exposure drafts published today propose ‘deletions or modifications’ for the following two items related to IFRS 9 (2013):

  • (a) Non-recycling of the hedging gain or loss on fair value hedges of investments in equity instruments measured at fair value through other comprehensive income: The ASBJ proposes that the gain or loss on a hedging instrument arising from fair value hedges that are recognised in other comprehensive income is reclassified to profit or loss.
  • (b) Basis adjustments in cash flow hedges: The ASBJ proposes that when an amount is removed from the cash flow hedge reserve, which is a component of equity, a corresponding amount is included in other comprehensive income in the statement of comprehensive income.

Please click for access to all exposure documents as well as a press release on the ASBJ website (all documents available in the English language).

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