An influential accounting board reached a consensus Monday in opposing a proposal by ruling coalition lawmakers that would allow companies to hide unrealized losses on their shareholdings.

Members of the Accounting Standards Board of Japan said their meeting was dominated by criticism of the proposal to freeze the mark-to-market method of accounting on the value of stocks held by corporations.

Most of the participants doubt that accounting-rule changes will efficiently stimulate the anemic economy and say countering deflation is a matter separate from accounting and should be dealt with via fiscal and financial policies.

The accounting board operates under the auspices of the Financial Accounting Standards Foundation, whose governing board consists of top executives of leading businesses, university professors and an accountant.

The members of the board have been studying the feasibility of freezing the rules that call for booking the market value of securities holdings, which was requested by the ruling coalition -- the Liberal Democratic Party, New Komeito and the New Conservative Party.

The board will meet June 2 to conclude its talks prior to the issuance of a written opinion.

Also in Monday's meeting, the board members agreed to end debate on a separate proposal by the ruling coalition to postpone the planned introduction in fiscal 2005 of an accounting rule under which firms must book valuation losses on their fixed assets.

The board reasoned it is not authorized to handle an issue that comes under the jurisdiction of governmental economic policymaking.

It also decided to withhold a conclusion about a proposal to consider allowing the life insurance industry to introduce its own accounting standards but said the issue should be debated on later occasions, according to board members.