ASBJ Statement No.20
Accounting Standard for Disclosures about Fair Value
of Investment and Rental Property
ASBJ Guidance No.23
Guidance on Accounting Standard for Disclosures
about Fair Value of Investment and Rental Property
November 28, 2008
The Accounting Standards Board of Japan
Remarks on the Release
The Accounting Standards Board of Japan (ASBJ), as part of its project on convergence
with IFRSs, has been deliberating whether disclosure about fair value of investment
property should be required, clarification of the definition and scope and how to measure
its fair value.
On November 20, 2008, at the 166th meeting, the ASBJ approved ASBJ Statement No.
20 (hereinafter, the “Accounting Standard”) and ASBJ Guidance No.23 (hereinafter, the
“Guidance”) for public release.
Prior to the publication of the Accounting Standards and the Guidance, the ASBJ
published exposure drafts of the Accounting Standards and of the Guidance, on June 30,
2008, to invite public comments widely, and revised some parts of the drafts based on
the review of the comments received.
Outline of the Accounting Standard
The objective of the Accounting Standard is to prescribe requirements of disclosures
about fair value of investment and rental property in the notes to financial statements.
Definitions and scope of investment and rental property
The term “investment and rental property” is defined as property held to earn rentals or
for capital appreciation rather than for inventories. Therefore, a property used in the
production or supply of goods or services or for administrative office is not included in
investment and rental property.
Investment and rental property includes the following property:
(1) property that is classified as investment property in the balance sheet.
(2) idle property that is not expected to be used in the future.
(3) rented property other than the above.
Investment and rental property also includes property that is being constructed or