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The Third Japan-EU Monitoring Meeting on Developments in Accounting and Auditing Issues was held in Brussels on November 28, 2007.
On the accounting standards session, the EU explained the draft equivalence-mechanism on which currently the European Parliament and the European Securities Committee are being consulted whereas Japan explained its ongoing work on convergence between the IASB and the Accounting Standard Board of Japan (ASBJ). The auditing session was devoted to issues such as recent regulatory developments and possible bilateral cooperation.
In the session on accounting,
- The JFSA emphasised that the convergence between Japanese GAAP and IFRS was well on-track, and reiterated its expectation that Japanese GAAP needs to be assessed as equivalent with IFRS by 2009. The EC welcomed the efforts made so far and encouraged its continuation.
- The EC explained its planned mechanism for the determination of equivalence, the timetable and the latest developments in this area.
Both parties expressed hope that a mutually satisfactory solution could be reached by 2009.
In the session on auditing,
- The JFSA explained the amendment of the Certified Public Accountants Law, including the notification requirement under the revised CPA Law.
- The EC explained its ongoing regulatory developments in EU and progress in the equivalence assessment on audit.
Both parties also discussed how to make progress towards mutual reliance in the area of auditor oversight.
- Throughout both sessions, both parties emphasized that these discussions should be conducted with a view to maintaining openness in both markets.
The next meeting is scheduled for the early spring of 2008.