The ASBJ sends follow-up letter to the IASB regarding the Equity Method Project
The Accounting Standards Board of Japan (‘ASBJ’) sent a follow-up letter to the International Accounting Standards Board (‘IASB’) regarding the IASB’s Equity Method project, which is currently under redeliberations. This letter follows the letter entitled ‘Re: The Equity Method Project’ which the ASBJ sent to the IASB in November 2025, which expressed the ASBJ’s significant concerns regarding the direction of the project.
In this follow-up letter, the ASBJ welcomed the IASB’s tentative decision to introduce an accounting policy choice that permits an investor to choose either full or restricted recognition of gains or losses on transactions with associates at its Board meeting in May 2026. The letter also expressed the ASBJ’s appreciation for the five years’ work of Dr Barckow, IASB Chair, who is due to step down in June 2026.
The ASBJ will carefully follow the IASB’s discussions related to the disclosures to be provided under the accounting policy choice under the leadership of the new Chair and provide the IASB with additional comments, if any.