The Trial Balance is CFO.com’s weekly preview of stories, stats and events to help you prepare.
Part 1 — FASB and ASBJ meet during rapidly mounting fiscal pressure in Japan
As accounting standard-setters from the U.S. and Japan met in Tokyo last week for their 35th bilateral meeting, Japan’s bond yields continued to rise as the country adjusted to shifting political dynamics following recent upper house elections.
The Financial Accounting Standards Board and the Accounting Standards Board of Japan didn’t formally discuss recent bond market changes or their potential impact on U.S. markets and global accounting during their meeting last week, but the volatility provided context for discussions on business combinations, environmental credit programs and each board’s agenda consultation process.
Japan’s 10-year government bond yield recently climbed toward 1.6%, reaching highs not seen since 2008, as political uncertainty and potential fiscal spending fuels global concern. Japan’s government debt now exceeds 260% of GDP, the highest among developed economies, adding to concerns about long-term fiscal sustainability as borrowing costs rise. Japan’s move to end yield curve control last year has narrowed the yield gap between Japanese and U.S. bonds, putting pressure on U.S. Treasury markets and renewing attention to global interest rate dynamics.
These are issues where the boards may look for clear alignment in reporting requirements between U.S. GAAP and Japanese GAAP standards. In the U.S., standards such as ASC 815 on derivatives and hedging and ASC 820 on fair value measurement guide how companies account for these areas. These areas take on added complexity for CFOs as global bond market volatility may reshape how companies apply accounting standards for valuation, risk and financial reporting.
The meeting also marked the first attendance by FASB Vice Chair Hillary Salo and Technical Director Jackson Day in their current roles. In addition to the bilateral meeting, FASB leaders joined a public roundtable with ASBJ stakeholders to gather input on active projects and hear feedback from constituents in the region.
As interest rate shifts and political changes continue to impact Japan’s bond market, the need for stable and comparable financial reporting standards likely remains top of mind for both boards. The boards are expected to meet again in Norwalk, Connecticut, during the second half of 2026.
Part 2 — This week
Here’s a list of important market events slated for the week ahead.
Monday, July 21
Tuesday, July 22 — None scheduled
Wednesday, July 23
- Existing home sales, June
Thursday, July 24
- Initial jobless claims, July 19
- S&P flash U.S. services PMI, July
- S&P flash U.S. manufacturing PMI, July
- New home sales, June
Friday, July 25
- Durable-goods orders, June
Part 3 — CFO Media appearance of the week: Applied Intuition CFO Brian Dong
In a recent conversation hosted by Applied Intuition’s founders, CFO Brian Dong discussed how his background as an engineer influences his approach to finance and leadership. Dong began his career in embedded software at Qualcomm, where he earned four patents and first discovered his ability to translate technical complexity into business strategy. “As an engineer, you’re wired to ‘we have a problem, go build the thing to solve the problem,’” he said. “That was the light bulb… that companies actually make inorganic growth investments.”
Reflecting on his time advising tech firms at Goldman Sachs and now guiding capital deployment at Applied, Dong emphasized that strong finance teams are active members of the business outside of finance. “The best finance teams are enablers for the business,” he said. “If you’re just there to record the results… that’s not a super high value-add finance org in my opinion.” Dong also addressed the pressure of investing in AI development, noting, “If we believe there’s a real commercial opportunity on the other side of that investment… that’s when we press.”
