IASB in Far East convergence move

Link: IASB accountability questioned

The move is one of many projects designed to bring accounting standards closer on a global scale. However, differences between both boards – principally the accounting treatment of mergers – is expected to create an added level of complexity.

A large number of accountants in Japan has argued that certain business combinations should be seen as a ‘pooling of interests’ in which neither company is technically the acquirer, but under IFRS, all mergers must be treated as a form of acquisition in accounting terms.

Related reading