The Accounting Standards Board of Japan (ASBJ) and the International Accounting Standards Board (IASB) have held their first two-day meeting since the announcement of an initiative to accelerate convergence between Japanese generally accepted accounting principles (GAAP) and International Financial Reporting Standards (IFRSs), known as "The Tokyo Agreement".

At the meeting in London on 27 and 28 September 2007 members of the ASBJ and the IASB had two objectives. First, to review the convergence programme and the shared goal of eliminating major differences between IFRSs and Japanese GAAP by 2008, with the remaining differences being removed on or before 30 June 2011. And second, to discuss the arrangements for the ASBJ to input its views into the IASB's current work programme.

The discussions included a review of short-term convergence projects, where major differences are to be eliminated towards the goal of 2008, as well as other major projects including segment reporting, intangible assets, special purpose entities and business combinations. In addition, the representatives of the boards exchanged views on the current status of their work on consolidation, liabilities and equity and revenue recognition.

The boards also agreed on future arrangements for interaction both by board members and by staff in order to achieve convergence within the agreed timetable.