The boards, meeting in Tokyo on 6 and 7 June 2011, also announced their intention to deepen their co-operation in preparation for a decision around 2012 on the mandatory application of IFRSs in Japan. Some Japanese domestic companies are already permitted to prepare financial statements in accordance with IFRSs.

At the meeting, Sir David Tweedie, chairman of the IASB, and Ikuo Nishikawa, chairman of the ASBJ, expressed their belief that their boards' work for the convergence of their standards was an important step on the path towards Japan’s possible adoption of IFRSs, and noted that the ASBJ’s continuing participation in the IASB’s standard-setting process contributes significantly to the development of a single set of high quality global accounting standards. A summary of the results of the Tokyo Agreement so far is attached. This initiative will continue to seek further convergence of IFRSs and Japanese GAAP.

The representatives of the boards also discussed the remaining projects as described in the MoU between the IASB and the US national standard-setter, the FASB, including revenue recognition, leases, financial instruments and insurance contracts, as well as interpretation and practical issues relating to the voluntary application of IFRSs in Japan.

In working together under the Tokyo Agreement, the boards have strengthened their relationship and made good progress towards the goal of global accounting standards for use in capital markets. The IASB and the ASBJ agreed that they should continue the effort for convergence and establish a closer relationship.

Press release