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IFRS (International Financial Reporting Standards)

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.

JPX-Nikkei Index 400

JPX launched a new index that is comprised of companies with high appeal for investors, which satisfy the standards of global investors, such as efficient capital use and investor-focused management perspectives.
Selection Criteria consist of the Quantitative Indicators and the Qualitative Factors, and the latter includes adoption (or scheduled adoption) of pure IFRS.

Main Points of JPX-Nikkei Index 400
 

Corporate Activity Award

TSE established Corporate Activity Award to promote corporate activities that TSE, a market operator, deems desirable. The theme for the FY2013 Corporate Activity Awards was “Pro-active Initiatives toward the Adoption of IFRS,” and TSE awarded listed companies that served as a model by actively providing opinions and information on IFRS adoption.

5th Corporate Activity Award (FY2013)

Disclosure of basic views on selection of accounting standards

TSE requires listed companies to disclose their basic views on selection of accounting standards (i.e. JGAAP or other standards) in their earnings reports. The requirement is first applied to the earning releases for the fiscal year ending on or after March 31, 2015. This initiative is in line with the recommendation on "Promotion of an increase in the number of companies voluntarily adopting the IFRS" in "Japan Revitalization Strategy Revised in 2014 −Japan 's challenge for the future−", which was approved by the Cabinet on June 24,2014.

TSE analyzes disclosure of basic views on selection of accounting standards in their earnings reports. This initiative is in line with the recommendation on "Promotion of further increase in the number of companies voluntarily adopting the IFRS" in "Japan Revitalization Strategy Revised in 2015 −Revolution in productivity by investment in the future−", which was approved by the Cabinet on June 30,2015.

Report Name File
Analysis of Disclosure in "Basic Policy Regarding Selection of Accounting Standards" [Companies whose FYs ended by Mar. 31, 2023] icon-pdf
Analysis of Disclosure in "Basic Policy Regarding Selection of Accounting Standards" [Companies whose FYs ended by Mar. 31, 2022] icon-pdf
Analysis of Disclosure in "Basic Policy Regarding Selection of Accounting Standards" [Companies whose FYs ended by Mar. 31, 2021] icon-pdf
Analysis of Disclosure in "Basic Policy Regarding Selection of Accounting Standards" [Companies whose FYs ended by Mar. 31, 2020] icon-pdf
Analysis of Disclosure in "Basic Policy Regarding Selection of Accounting Standards" [Companies whose FYs ended by Mar. 31, 2019] icon-pdf