The Series of Dialogue Papers
" Conceptual Construction of Financial Accounting”
Working Group on Fundamental Concepts
（Tentative translation: twenty eight Feb. 2005）
Issuance of the Group of Discussion Papers " Conceptual Framework of economic Accounting”・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ you Discussion Conventional paper " Goals of Financial Reporting” ・・・・・・・・・・・・・・・4 Dialogue Paper " Qualitative Qualities of Accounting Information” ・・・・・12 Discussion Conventional paper " Portions of Financial Statements” ・・・・・・・・・・・・・・22 Dialogue Paper " Recognition and Measurement in Financial Statements” ・・・・32
Issuance in the Series of Debate Papers " Conceptual Framework of Financial Accounting” Background Information around the Issuance in the Series of Debate Papers " Conceptual Structure of Financial Accounting” Based on comments received via various constituencies regarding the necessity for having a written conceptual framework as being a basis for developing accounting standards in Japan, the Accounting Specifications Board of Japan (hereinafter called " the Board”) organized a Working Group below its guidance, which largely consists of external academics, and delegated the study of this issue to the Working Group. Some a lot of the time Board users and some staff also took part in in the Operating Group, and the Working Group held up to 46 meetings under the direction of the Chairman. This series of dialogue Papers " Conceptual Framework of Financial Accounting” (hereinafter known as " these Discussion Papers”) summarizes the conclusions reached by the Working Group. Subsequently, the sights provided in these Discussion Documents are not actually those of the Board tend to be those of the Working Group that had been reported towards the Board. These types of Discussion Papers may at some point become approved as sobre facto requirements if their convenience is proved in the process of developing criteria in the future of course, if improvements are made to reflect the opinions of constituencies. The significant Group desires the Panel to continue talking about these Debate Papers with constituencies as required while noticing how these kinds of Discussion Paperwork are recognized. Although there happen to be various likely alternatives regarding the structure from the conceptual structure, the structure of these Debate Papers is basically in line with precedent conceptual frameworks issued international. Since conceptual frameworks issued by major accounting normal setters abroad are well regarded in Asia, using the same structure would facilitate the constituencies' comprehension of these Dialogue Papers and enable these Discussion Papers to operate more efficiently. Additionally , adopting the same structure might also help communication with standard setters overseas relating to international concurrence (or intercontinental harmonization) of accounting criteria. Role with the Discussion Papers These Conversation Papers sum up and coordinate the basic areas and ideas
fundamental existing business accounting (financial accounting in particular) and their articles are expected to provide guidance for developing accounting criteria in the future. If the guidance delivers systematic steadiness to accounting standards, predictability regarding within accounting specifications would be increased. Assisting constituencies in preparing for the uncertain future and avoiding needless costs through enhanced predictability is another natural part expected by these Dialogue Papers. Summarizing and organizing basic areas and ideas facilitates marketing communications with normal setters abroad. When worldwide convergence (or international harmonization) of accounting standards is definitely pursued, answers of the reasons for the differences in many cases are required. These Discussion Documents are also anticipated to provide an powerful basis for the explanations. These Discussion Paperwork are not only anticipated to organize existing accounting requirements systematically since...