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Convergence of Accounting in Emerging Markets andTransition Economies to establish a regular exchangemechanism to improve and implement the varioussuggestions raised in the Beijing Initiative. The Forum canbe convened annually by the IASB, CASC, other emergingmarkets and transition economies?and accountingorganisations that are willing to host the Forum. The minutesof discussions at the Forum will be offered to the IASB. Theparticipants unanimously agreed to try to gain support tothe Forum from their local agencies and supervisorydepartments. All the emerging markets and transitioneconomies are welcome to participate in this Forum.3. Emerging markets and transition economies should takemore positive actions to participate in the internationalconvergence of accounting and development of IFRSs. Allemerging markets and transition economies shouldstrengthen communication and exchange with the IASB,as well as that among one another. Such cooperation canbe conducted in various forms ranging from the experienceof adopting IFRSs or formulating standards and models ofpersonnel education and training. As joint hosts of thisconference, the IASB and CASC will continue to supportemerging markets and transition economies to takepositive actions in international convergence. The CASCinformed the participants that it will work together withthe IASB through IASCF’s education department toconsider the establishment of an education trainingprogram on international convergence targeted atemerging markets and transition economies. The CASCwill utilise project funds of Asia-Pacific Finance andDevelopment Centre (AFDC) to train human resourcesfrom emerging markets and transition economies in thefield of international convergence of accounting.(Source: www.iasb.org)India announces convergence with IFRSsfor public interest entities from 2011The Council of the Institute of Chartered Accountants ofIndia, at its 269th meeting being held these days at New Delhi,has decided to fully converge with International FinancialReporting Standards (IFRSs) issued by the InternationalAccounting Standards Board from the accounting periodscommencing on or after April 1, 2011. Like in other countriessuch as Australia, New Zealand and countries in the EuropeanUnion, the IFRSs will be adopted for the listed entities andother public interest entities such as banks, insurance companiesand large-sized entities. The decision is an importantmilestone in achieving full convergence with IFRSs as India willjoin 102 countries which presently require or permit use ofIFRSs in preparation of financial statements in their countries.By 2011, the number is expected to reach 150.With a view to ensure smooth transition to the IFRSs fromApril 1, 2011, the Institute of Chartered Accountants of Indiawill take up the matter of convergence with IFRSs with theNational Advisory Committee on Accounting Standardsestablished by the Ministry of Corporate Affairs, Governmentof India, and various regulators such as the Reserve Bank ofIndia, the Insurance Regulatory and Development Authorityand the Securities and Exchange Board of India. The Instituteof Chartered Accountants of India would formulate its workplanto ensure that the IFRSs are effectively adopted fromApril 1, 2011. The Institute will also conduct IFRS-specific trainingprogrammes for its members and others concerned to preparethem to implement IFRSs. The Institute will also take up thoseareas in certain IFRSs where it feels that some changes inIFRSs may be required keeping in view the Indian conditions.(Source: www.iasb.org)The ASBJ and the IASB announce TokyoAgreement on achieving convergence ofaccounting standards by 2011Ikuo Nishikawa, Chairman of the Accounting StandardsBoard of Japan (ASBJ), and Sir David Tweedie, Chairman ofthe International Accounting Standards Board (IASB), jointlyannounced an agreement (known as the Tokyo Agreement)to accelerate convergence between Japanese GAAP andInternational Financial Reporting Standards (IFRSs), aprocess that was started in March 2005.As part of the agreement the two boards will seek toeliminate by 2008 major differences between Japanese GAAPand IFRSs (as defined by the July 2005 CESR assessment ofequivalence), with the remaining differences being removedon or before June 30, 2011. Whilst the target date of 2011 doesnot apply to any major new IFRSs now being developed thatwill become effective after 2011, both boards will work closelyto ensure the acceptance of the international approach inJapan when new standards become effective.Commenting on the agreement, Mr Ikuo Nishikawa said:“We have reaffirmed our commitment to convergence andare pleased to have an opportunity to increase the significantinvolvement of the ASBJ and Japan more generally in theinternational standard-setting process. It is expected that thisagreement will enable Japanese companies to publishfinancial statements prepared under Japanese accountingstandards without any remedies continuously in the EU andother capital markets using IFRSs.”Sir David Tweedie said: “We are delighted that the ASBJ,representing the interests of the second largest economy inthe world, has agreed to accelerate convergence betweenJapanese GAAP and IFRSs and look forward to its activeparticipation in shaping the future direction of internationalfinancial reporting standards.”(Source: www.iasb.org)www.micpa.com.myJune/August 2007 | The Malaysian Accountant |49