1. Accounting (Source: “Keiei Zaimu Magazine”)
Financial Services Agency held a general meeting on June 8th to discuss convergence of JGAAP and IFRS. Business organizations, companies and ASBJ attended the meeting and discussed the following
applications of IFRS to financial statements:
①Consolidated financial statements shall be prepared in conformity with IFRS.
On the other hand, separate financial statements shall be prepared in conformity with JGAAP.
②Both consolidated financial statements and separate financial statements shall be prepared in conformity with IFRS
However the discussion remains unconcluded and the parties involved are demanding rapid decision making.
２. Taxation (Source: “Zeimu Tsushin Magazine”)
The 2010 Tax Reform relaxed the definition of the eligibility for qualified reorganization status. Currently, both ESOPs and stock options with less than 5% ownership are taken into consideration to determine
the eligibility. However they are excluded in the eligibility determination under the tax reform.
３. This Week’s Words of Wisdom (Source: “English words of wisdom to enrich life”)
“Every abridgement of a good book is a fool abridged.” (Michel de Montaigne)
My experience of reading a summary of “The Brothers Karamazov” adds persuasiveness to this quote. It seems as if we watch a good movie on DVD at the fourfold normal speed.