Which of the following is true of Tokyo agreement of August 2007?
A)It is a jointly announced agreement between the Accounting Standards Board of Japan (ASBJ) and Financial Accounting Standards Board (FASB).
B)It is an agreement announced to eliminate the cross-corporate ownership of companies in Japan.
C)It is a jointly announced agreement between Japanese Institute of Certified Public Accountants (JICPA) and Japan's Ministry of Finance (MoF).
D)It was announced to accelerate the process of convergence between Japanese GAAP and IFRS.

Question

Quizplus · Accepted Answer

The Tokyo agreement of August 2007 was jointly announced by the Accounting Standards Board of Japan (ASBJ) and the Financial Accounting Standards Board (FASB) to accelerate the convergence between Japanese GAAP and IFRS. Therefore, option D is the correct answer. Option A is incorrect because ASBJ and FASB jointly announced the Norwalk Agreement in 2002, not the Tokyo Agreement. Option B is incorrect because the Tokyo Agreement did not address cross-corporate ownership in Japan. Option C is incorrect because the Tokyo Agreement was not jointly announced by JICPA and Japan's Ministry of Finance (MoF).

Which of the Following Is True of Tokyo Agreement of August