An explanation of the differences between results under IFRS and under Japanese GAAP would be required. Currently, around 30 foreign companies are listed on the Tokyo Stock Exchange, but only about 10 of those are from countries that require IFRSs. Most of the others are US and Canadian companies that do not prepare IFRS financial statements. Several news stories have also reported that the European Union may extend to 2007 the deadline for Japanese companies listed in Europe to switch to IFRSs. Around 250 Japanese companies list their shares or bonds on EU exchanges. Most prepare their financial statements under Japanese accounting rules. The Japanese government has already asked governments in Europe to allow these companies to continue to use Japanese GAAP indefinitely.

FASB's exposure draft is basically the same as IFRS 2. The US Congress is considering legislation that would restrict a FASB standard on expensing stock options to options granted to the top five officers of a company (see our news story of 16 June 2004). The FASB hearings will be webcast – see the FASB Website for details.

This review is being conducted alongside the IASC Foundation Trustees' Constitution Review now under way.

International convergence and coordination with standard-setters is on the agenda for discussion at the first meeting of the first meeting of the Standing Advisory Group of the US Public Company Accounting Oversight Board in Washington on 21-22 June 2004. Click for Details.

Also, EFRAG plans to set up a "working group on Service Concession Arrangements with the objective to discuss urgent matters for the concession industry regarding the adoption of IFRS for 2005." EFRAG seeks nominees by 23 June.

The FRC believes that the adoption of IAS 39 is particularly important to regulate accounting for off-balance sheet finance and to ensure that the impact of derivatives is recorded in financial statements." Click for (PDF 60k) and (PDF 93k). The UK Association of Corporate Treasurers has written a similar (PDF 34k) to the EC.

The video presentations are in Danish and include:

• Business combinations, goodwill, intangible assets, and impairment test.
• An update on the new rules and principles on financial instruments in IAS 39.
• Share-based payment – new rules, new considerations.

You can watch the whole video-streaming (or parts of it) Here. Best results are achieved by watching the individual part from the start to the end.

The agenda, set out below and in more detail Here, includes a meeting with the Nordic Regional Standard-Setters on the afternoon of 23 June. The Board will meet with the Standards Advisory Council at the same location on 24-25 June (agenda previously reported in our News Story of 7 June 2004).

AGENDA – IASB MEETING 21-23 JUNE 2004 Monday 21 June 2004 Accounting Standards for Small and Medium-sized Entities Matters Arising from IFRIC Meeting 3-4 June (see earlier news stories, this page) Business Combinations (Phase II) Short-term Convergence - Income taxes: Definition of 'Tax Base' Tuesday 22 June 2004 Financial Instruments that Are Equity-Linked Revenue Recognition Concepts Leases - Changes in Assets and Liabilities Wednesday 23 June 2004 Exploration for and Evaluation of Mineral Resources - Redeliberation of ED 6 Consolidation Financial instruments - Amendment to IAS 32: Financial Instruments Puttable at Fair Value Financial instruments - Disclosures: Sweep Issues 2:00-6:00pm: Meeting with Nordic Regional Standard-Setters

The committee is chaired by Rep. Michael G. Oxley, principal author of the Sarbanes-Oxley Act. The bill (known as H.R. 3574, the Stock Option Accounting Reform Act) would also delay implementing any standard for a year, until completion of a study. Approval by the committee means that the bill is now sent to the full House for consideration. The Senate must also pass the same legislation before the bill becomes law. Click for Press Release (PDF 103k).

"EFRAG welcomes each of the detailed improvements as presented in the paper and regards them as a great improvement to the transparency and democratic process within the IASB." Additionally, the EFRAG draft makes further proposals in the areas of comment periods, changes to existing standards, basis for conclusions, use of field tests or field visits, use of discussion papers, and re-exposure of proposals. EFRAG seeks comments by 8 July 2004.