Do you plan to change your accounting standards from the current JGAAP (Japanese GAAP) to IFRS (International Financial Reporting Standards), which prevents goodwill amortization?

A

Do you plan to change your accounting standards from the current JGAAP (Japanese GAAP) to IFRS (International Financial Reporting Standards), which prevents goodwill amortization?

As stated on P24 of the “M&A Strategy and Earnings Forecast” Script disclosed on November 20, 2023, if we adopt IFRS, we would need to incur trouble calculating the prior-year results of the acquired company as if IFRS had been applied to the acquired company which will potentially slow down our M&A speed, therefore we adopt JGAAP to ensure flexible M&A. As an alternative to transitioning to IFRS, we disclose EBITDA and Net income before amortization of goodwill, which can easily indicate IRcash flow.

https://ssl4.eir-parts.net/doc/9166/ir_material_for_fiscal_ym5/145625/00.pdf

Tag: 2024/1/31