The ASBJ sends Third letter to the IASB regarding the Equity Method Project

The Accounting Standards Board of Japan (‘ASBJ’) sent a letter entitled ‘Further Follow-up on Our Views Regarding the Equity Method Project’ to the International Accounting Standards Board (‘IASB’).  This letter follows the ASBJ’s previous letters on the IASB’s Equity Method Project sent in November 2025 and June 2026.

The ASBJ thinks the accounting policy choice with additional disclosures requirements for entities that choose to apply the Restricted Recognition approach tentatively decided at the IASB’s Board meeting in May 2026 would provide a very strong incentive towards choosing to apply the Full Recognition approach.

In this third letter, the ASBJ encourages the IASB to reconsider the disclosures so that the burden of choosing to apply either approach would be equalised to the extent possible.

Third Letter on ASBJ Views Regarding the Equity Method Project