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The Business Accounting Council, an advisory panel of experts to the Japanese Financial Services Agency, announced a report entitled ''Towards the International Convergence of Accounting Standards.
The rapid globalization of capital markets, however, has resulted in further acceleration in the global convergence of accounting standards, as national accounting standards are being converged with one another, the report notes. Also, the use of International Financial Reporting Standards (IFRSs) has been expanding.
Given the time-table for the equivalence assessment by the EU, it is critical to reciprocally achieve, by early 2008, the convergence for items which would only take a short period of time; at the same time, measurable progress of the convergence would need to be gained even for items which could take a longer period of time. It is appropriate that a time-framed convergence programme be developed accordingly, and be shared with both domestic and foreign parties.