PISA presents a new image for academic achievement, which has prompted Japanese education reforms over the past decade to innovate teaching and learning for 'PISA-style literacy'. Supported by theoretical foundations, particularly with regard to the concept of 'PISA literacy' and 'authentic assessment', these reforms have accomplished progress in the focus on higher order competencies, such as application and the development of new assessment strategies. However, more recently, various critical discussions of 'PISA literacy' are underway in the Japanese academy. They interrogate it more critically and reveal the narrow emphasis on functional application and technical operation. Current assessment practices, which tend to fall into 'criteria compliance', are in urgent need of review. There is a need to extend the critical discussions in progress to the new assessment strategies. This paper responds to this, by considering the Japanese acceptance of 'PISA literacy' and its assessment, discussing the features and limitations.