Revision of Practical Guidance for Disclosure of Earnings Forecasts
In Japan, it is an established practice for listed companies to disclose their "earnings forecast for the next fiscal year" at the time of earnings announcement, which has been used by investors as useful information for investment decisions.
In December 2010, the Financial Services Agency's "Action Plan for Revitalization of Financial and Capital Markets and the Financial Industry" called for a study of how earnings forecasts should be made by market participants from the perspective of "providing appropriate forecasts about companies in the marketplace" and for measures to be taken based on the results of the study.
Tokyo Stock Exchange (TSE) commissioned an external research institute to study the content of the plan and to examine specific practical measures, etc., and in March 2012, TSE announced the details of a revision of specific practical guidance.
(Some additions were made in April 2012 to the content of the plan.)
Report of the Study Group on the Disclosure of Earnings Forecasts by Listed Companies
TSE is pleased to announce that we have received the "Study Group Report on the Disclosure of Earnings Forecasts by Listed Companies" from the Japan Securities Research Institute.
| Study Group Report on the Disclosure of Earnings Forecasts by Listed Companies (in Japanese only) |  |
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| Summary of the "Study Group Report on the Disclosure of Earnings Forecasts by Listed Companies" (prepared by Tokyo Stock Exchange) (*Partially revised as of Aug. 10, 2011) (in Japanese only) |
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Policy on Revision of Practical Guidance for Disclosure of Earnings Forecasts
TSE has notified listed companies of its policy for reviewing the practical guidance for earnings forecast disclosure based on the recommendations of the above-mentioned "Study Group Report on the Disclosure of Earnings Forecasts by Listed Companies" and the discussions at the Roundtable Meeting on Listing System Improvements held in October 2011.
| Policy on Revision of Practical Guidance for Disclosure of Earnings Forecasts (in Japanese only) | |
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Details of Revision of Practical Guidance for Disclosure of Earnings Forecasts
TSE has notified listed companies of the specific revisions to the practical guidance for earnings forecast disclosure based on the policy indicated in the "Policy on Revisions to the Practical Guidance for Earnings Forecast Disclosure" above, and has published the details.
(Please note that some details were added on Apr. 5, 2012)
| Practical Guidance for Disclosure of Earnings Forecasts [Partially revised on Apr. 5, 2012] (On page 11, we added the FSA‘s position on the interpretation of laws and regulations regarding “forecast values” under insider trading regulations.) (in Japanese only) | |
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