Korea Accounting Standards Board Holds Meeting of Korea-China-Japan Accounting Standards-Setting Organizations

The Korean Accounting Standards Board announced on the 31st that a trilateral meeting involving accounting standards-setting bodies from Korea, China, and Japan was held in Jeju Island.

The meeting was attended by Yasunobu Kawanishi, Chairman from Japan, Juan Zhang, Director of the Accounting Department from China, and other officials from each country's accounting standards-setting organizations. Representatives from the accounting standards bodies of Hong Kong and Macau also participated as observers to share the status of International Financial Reporting Standards (IFRS) adoption in their respective countries and to discuss key accounting issues.

At this meeting, discussions were held on common interests including Power Purchase Agreements, the equity method, and the post-implementation review of IFRS 16 ‘Leases’.

Japan focused on the accounting units for virtual power purchase agreements and the accounting treatment of renewable energy certificates. China shared the opinions and concerns of its domestic stakeholders regarding the exposure draft on ‘Equity Method Accounting’ released last month by the International Accounting Standards Board (IASB).

Korea presented specific application issues related to the determination of lease terms for renewal options based on mutual agreement and variable lease payments in connection with the ongoing IASB post-implementation review of IFRS 16 Leases, and gathered opinions from the participating countries.