Release of Exposure Drafts on simplification of disclosures in Quarterly Financial Statements

As of December 22, 2010, the Accounting Standards Board of Japan (ASBJ) has released 1) Proposed Amendments to Accounting Standard for Quarterly Financial Reporting and 2) Accounting Standard for Reporting Corrections of Errors and Changes in Accounting in order to simplify the disclosing procedures mainly for the 1^st and the 3^rd quarterly financial reporting. Financial Services Agency (FSA) has also released Proposed Amendments to Regulations on Quarterly Consolidated Financial Statements on the same day.

The proposed amendments aim at the following simplifications:

Current Accounting Standard

Proposed Amendments

Quarterly Income Statement and Quarterly
Comprehensive Income Statement(※1)

Disclose both cumulative information from the beginning period and Quarterly information

Disclose cumulative information from the beginning period only; Disclosure of Quarterly information is optional(※2)

Quarterly Cash flow Statement

Disclose Cash flow Statement for Quarter 1, Quarter 2 and Quarter 3

Disclose Cash flow Statement for Quarter 2 only; Disclosures of Quarter 1 and 3 are optional, In this case, notes to Depreciation and Goodwill amortization from the beginning period should be provided

Quarterly Financial Reporting

Disclose significant changes in financial statements according to Quarterly Accounting Standards

Simplify the disclosure of significant changes and other items regarding financial statements

※1　or Quarterly Profit and Loss and Comprehensive Income Statement.

※2　If Quarterly information is not disclosed, the relative notes are not necessarily presented. If Quarterly information is disclosed, notes to segment information, profit per share and seasonal changes are optional.