005 Abolition of tentative treatment of change in category of bonds
On March 17, 2010, Accounting Standards Board of Japan decided to abolish the Accounting Standard, its Implementation Guidance and Practical Solution 26 on tentative treatment of change in category of bonds on March 31, 2010, which was an application deadline.
In the context of crisis in financial markets since fall in 2008, International Accounting Standards Board announced the change in category of financial assets. Accordingly, a tentative treatment of change in bonds had been announced. However, as few application of this had been seen and necessity of this application is low under this economic condition, they came to conclusion of this abolition.
Besides, when the category was changed, a note of additional information on its change was required as long as the balance existed even after the fiscal year when the change was made.
However, this note will be unnecessary after the application deadline.
Due to this abolition of tentative treatment, it will not be allowed to change in category of bonds categorized in “marketable securities” into “securities held to maturity”.
