News
IR information
Nov.14.2017
Announcement on adoption of International Financial Reporting Standards (IFRS)
Evolable Asia Corp. (Hereinafter “the Company) announces a meeting of the Board of Directors held on November 14, 2017 resolved to adopt the International Financial Reporting Standards (hereinafter, “IFRS”) for its consolidated financial statements and consolidated calculation documents in place of conventional Japanese standards, starting with the financial results for the fiscal year ending September 30, 2018.
With the introduction of IFRS, the Company seeks to increase its corporate value through (1) the strengthening of the group management base for accelerating global development and (2) enhancing the international comparability of financial statements in capital markets, among other factors.
Major impacts associated with the revision of accounting standards include lower expenses for the amortization of goodwill under IFRS, compared with those under the Japanese standards, reflecting the exclusion of goodwill due to M&A from amortization (intangible assets such as client assets are subject to amortization). In addition, unrealized profits and losses are recorded based on the fair value of shares of invested companies, and the evaluation of investment businesses is implemented based on an effectiveness measurement that is stricter than that in the Japanese standards. As a result, the Company assumes that profit levels for the fiscal year ended September 30, 2017 will be higher than those under the Japanese standards.
As for a schedule for disclosures while shifting to the voluntary adoption of IFRS, the Company plans to announce IFRS-based consolidated financial statements, starting with the consolidated financial results for the fiscal year ending September 30, 2018. Accordingly, the Company disclosed forecast consolidated results for the fiscal year ending September 30, 2018, based on IFRS, today.
With respect to quarterly results of the fiscal year ending September 30, 2018, the Company will also make disclosures based on IFRS instead of the Japanese standards. The specific dates for such disclosures will be announced as soon as all conditions are met.
With the introduction of IFRS, the Company seeks to increase its corporate value through (1) the strengthening of the group management base for accelerating global development and (2) enhancing the international comparability of financial statements in capital markets, among other factors.
Major impacts associated with the revision of accounting standards include lower expenses for the amortization of goodwill under IFRS, compared with those under the Japanese standards, reflecting the exclusion of goodwill due to M&A from amortization (intangible assets such as client assets are subject to amortization). In addition, unrealized profits and losses are recorded based on the fair value of shares of invested companies, and the evaluation of investment businesses is implemented based on an effectiveness measurement that is stricter than that in the Japanese standards. As a result, the Company assumes that profit levels for the fiscal year ended September 30, 2017 will be higher than those under the Japanese standards.
As for a schedule for disclosures while shifting to the voluntary adoption of IFRS, the Company plans to announce IFRS-based consolidated financial statements, starting with the consolidated financial results for the fiscal year ending September 30, 2018. Accordingly, the Company disclosed forecast consolidated results for the fiscal year ending September 30, 2018, based on IFRS, today.
With respect to quarterly results of the fiscal year ending September 30, 2018, the Company will also make disclosures based on IFRS instead of the Japanese standards. The specific dates for such disclosures will be announced as soon as all conditions are met.