ASBJ comments on the publication of revised IAS 32 and 39 Accounting standards for Financial Instruments

January 13, 2004
The Accounting Standards Board of Japan (ASBJ)

The Accounting Standards Board of Japan (ASBJ) respects the publication by the International Accounting Standards Board (IASB) of revised comprehensive accounting standards for financial instruments, International Accounting Standard (IAS) 32 Financial Instruments: Disclosure and Presentation and IAS 39 Financial Instruments: Recognition and Measurement on December 2003. During the course of this revision, we noted that IASB accommodated views from market participants and reflect them to revised standards. We respect an effort made by IASB as a standard setter to improve complex area of accounting standards, although we recognize that there are some points to be improved.

Like IAS 39, Japan has implemented the comprehensive accounting standard for financial instruments for several years, which account for them based on the purpose of holding. We believe this fundamental approach is important in the light of “substance over form”, from the viewpoint that the purpose of holding of financial instruments reflects their substance of investment position. We would be happy if we could collaborate with countries which introduce comprehensive standards for financial instruments to improve international standards. We hope these revised international standards would be widely accepted by a number of market participants around the world.