Representatives of the Financial Accounting Standards Board (FASB) and the Accounting Standards Board of Japan (ASBJ) held a regularly scheduled meeting on Oct. 26 and Oct. 27. The meeting was the 28th in a series of biannual meetings between the FASB and the ASBJ to further the boards’ cooperative efforts to develop global accounting standards. As with the previous meeting, this meeting was held virtually due to the novel coronavirus (COVID-19) pandemic.

At this meeting, representatives of the FASB and the ASBJ provided updates on their respective activities, including the response to the COVID-19 pandemic’s effects, and discussed agenda items in which both boards have common interests, including the accounting for goodwill, the equity method of accounting and the FASB’s Exposure Draft on the Elements chapter of the Conceptual Framework for Financial Reporting.

The FASB and the ASBJ plan to continue to exchange views. The next meeting is planned for the first half of 2021.

“The biannual meetings between the ASBJ and the FASB contribute to better, more aligned standards in our respective jurisdictions, and I am honored to engage in these discussions in my new role with the FASB,” Richard R. Jones, chair of the FASB, said. “Our exchange of ideas on goodwill accounting, the equity method of accounting and the conceptual framework yielded new insights on these issues, as well as valuable input on our post-implementation review of standards on leases, credit losses and revenue recognition. Our dialogues are especially critical at a time when both boards seek to help stakeholders successfully address pandemic-related financial reporting challenges.”

“This was our first meeting since Mr. Jones became chair of the FASB and I am pleased that we were able to deepen our mutual understanding,” Atsushi Kogasaka, chair of the ASBJ, said. “We had informative discussions on a wide variety of issues, including the accounting for goodwill and the FASB’s Exposure Draft on the Elements chapter of the Conceptual Framework for Financial Reporting, over the two days. Although this was the second meeting to be held in the form of a video conference, I believe that it is important to contribute to improving the quality of global accounting standards by responding to the uncertain circumstances.”