Accounting Standards Board of Japan
Financial Accounting Standards Foundation
Sustainability Standards Board of Japan
The ASBJ sent a letter to the IASB to convey a message that the ASBJ has significant concerns regarding the direction of the IASB’s Equity Method project
The ASBJ sent a letter to the International Accounting Standards Board (‘IASB’) to convey a message that the ASBJ has significant concerns regarding the direction of the IASB’s Equity Method project, which is currently in the process of redeliberations.
This letter describes that the ASBJ strongly disagree with the requirement that the investor shall recognise in full gains and losses resulting from all upstream and downstream transactions with its associates because a full recognition of gains and losses is likely to distort profit or loss, described as a highly summarised depiction of an entity’s financial performance for the period.
The ASBJ hopes the letter is helpful for the IASB’s consideration in future.