Wiliam (1998a, 1998b) (Torrance & Pryor, 1998) and identify the widespread notion of "closing the learning gap" (Sadler, 1989) as the mechanism of "convergent assessment". I also claim that formative assessment characterised by "convergent assessment" can lead to the practice of "criteria compliance" (Torrance, 2007). Together these claims point towards the theoretical problems of the evolved form of formative assessment and lead to a discussion of the main dilemmas for formative assessment: the kind of learning that is taking place, the effects of explicit learning objectives, the tension of accountability pressure and high-stakes summative assessments. Finally, by applying the suggestions above, this paper provides a critical analysis of recent assessment policy in Japan, emphasizing criterion-referenced approach in classroom assessment and proposes a pathway for developing formative assessment further.