Japanese Firm to Adopt IFRS

Japan Tobacco, the world's third-largest cigarette maker, is pushing to use International Financial Reporting Standards, the new global accounting standard, from the fiscal year ending March 2012.

 

The move is to better account for the more than half of its revenue that comes from its overseas operations in more than 120 countries, reports the Wall Street Journal. The move would also improve the company's disclosure methods to fit investors' perspectives.

 

The tobacco company could become a trailblazer for other Japanese companies in new accounting methods as Japan has yet to decide in 2012 whether to make IFRS standards mandatory, according to the newspaper.

 

Citing a poll conducted by the Tokyo Stock Exchange, the Journal says that 20% of the listed companies surveyed are concerned that a lack of IFRS standards in Japan could affect the management of global operations for Japanese companies, while 37% were worried that failure to sign up to the standards could prevent foreign investments in Japan.

 

The survey also showed that less than 10 companies are planning to release IFRS-based results by 2012.

 

 

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