A private accounting-standards body will decide whether to freeze mark-to-market rules on corporate securities holdings by the end of May, according to organization officials.
The ruling coalition requested that the Financial Accounting Standards Foundation suspend the mark-to-market rules to limit damage from the stock market plunge.
Under this accounting method, companies must book their cross-held shares at market value.
The Accounting Standards Board of Japan, a committee operating under the FASF, decided Tuesday to solicit opinions on the issue by holding a public hearing as early as May 1, the officials said.
The ASBJ has decided against considering changes in the mark-to-market accounting method on securities holdings at least for fiscal 2002 corporate book-closings. Many ASBJ members are against freezing the rule, arguing it could distort the accounting principle and undermine the credibility of Japanese firms.
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