1. Accounting (Source: “Keieizaimu Magazine”)
1) ASBJ releases Discussion Paper on Fair Value Measurement and Disclosure
The Accounting Standards Board of Japan (ASBJ) released a Discussion Paper on Fair Value Measurement and its Disclosure. The Discussion Paper has been prepared to reflect IFRS and/or USGAAP standards and is comprised of the following:
(1) The concept of fair value (definition)
(2) The fair value measurement of assets and liabilities
(3) The disclosure of the fair value measurement
The discussion paper is open for comment until October 5, 2009.
2) ASBJ to release Discussion Paper on Revenue Recognition in September
ASBJ has announced that they will be releasing a Discussion Paper on Revenue Recognition on September 8, 2009. This Discussion Paper is also expected to adopt IFRS and/or USGAAP’s latest position on revenue recognition.
2. Taxation (Source: “Zeimutsushin Magazine”)
Shipping basis is likely to be abolished
Many Japanese companies use the “shipping basis” when recognizing revenue from the sale of goods. However, if the “shipping basis” is abolished to conform with the proposed IFRS model that recognizes revenue only when risks and rewards of ownership are transferred from the seller to the buyer, the present Japanese tax code which allows one to elect either the shipping or acceptance basis may also be subject to modification.
Furthermore, it is still pending whether IFRS will adopt the “percentage of completion method” in accounting for long-term construction contracts.
3．This Week’s Words of Wisdom
“Insanity in individuals is something rare – but in groups, parties, nations and epochs, it is the rule.” (Friedrich Nietzsche)
Is it an exaggeration to say that the nation is in the midst of insanity over the current political drama of government change?
I am a bit concerned how the media, with no clear point of argument, is leading voters to the Democratic Party of Japan as a reaction to the Koizumi period.
However, given the current stagnation, it seems only natural for the public to opt for government change. Only the future histories may judge this event after all.