Initiatives at TSE toward IFRS Reporting

Update : Apr. 14, 2014


IFRS (International Financial Reporting Standards)

What is IFRS?

The International Financial Reporting Standards, or IFRS, is a framework for a global accounting standard developed and published by the International Accounting Standards Board (IASB).

Why IFRS? Why consider adoption?

A global standard

A single global accounting standard was envisioned to allow investors to use the same yardstick to compare companies across the world. Today, accounting standards worldwide are converging toward IFRS.

Expected Benefits of IFRS Reporting

Attract more global risk money

Different accounting standards across jurisdictions make it harder for investors to conduct peer comparison and analysis. By offering a common global standard, IFRS makes it easier for investors to compare and analyze Japanese companies with their global peers and invest in the Japanese market.

Faster investment decisions

Financial reporting based on a common accounting standard allows investors to better compare key information and make decisions more efficiently.

More efficient financial reporting

Multinational companies with subsidiaries worldwide are able to streamline the process of preparing consolidated financial statements and ensure consistent reporting quality by applying a single standard across the entire corporate group.

Initiatives at TSE toward IFRS Reporting

As IFRS becomes more widely accepted worldwide, moves toward its adoption in Japan to raise international competitiveness and ensure coherent financial reporting are also gaining momentum. At TSE, we are also actively encouraging listed companies to adopt IFRS.

Sectional Committee on Corporate Disclosure under the Advisory Group on Improvements to TSE Listing System

In October 2009, TSE established the Sectional Committee on Corporate Disclosure under the Advisory Group on Improvements to the TSE Listing System as an independent committee to examine the rules and systems for corporate disclosure.

After examining the various rules, on March 24, 2010, the Sectional Committee released its "Report by the Sectional Committee on Corporate Disclosure under the Advisory Group on Listing System Improvement - How Listing Rules and Regulations should be in light of Timely Disclosure of Quarterly Financial Results and Voluntary Application of IFRS" which contained proposals on changes to the corporate disclosure system.

In June 2010, TSE responded to the proposals by revising its rules and modifying its quarterly earnings report format and the corresponding preparation guidelines.
For details on the revisions, please see the page below.

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