Japan is planning a major overhaul of its accounting rules, starting with how to account for mergers and acquisitions. The move is part of a broader effort to stay in step with the United States and Europe as they converge accounting rules worldwide.
An exposure draft of the merger accounting reforms is slated to be introduced in June by the Accounting Standards Board of Japan. It will be one of some short-term convergence projects, tackling issues such as eliminating the pooling-of-interests method of accounting for mergers. A wider overhaul of less-pressing accounting issues will follow, which the ASBJ hopes to complete by 2011.
The short-term convergence projects are to be finished by the end of December, based on an agreement the ASBJ and the International Accounting Standards Board reached last August. The two boards agreed to accelerate the convergence of Japanese Generally Accepted Accounting Principles... To get the full story, subscribe now.
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