Publication of the finalized amendments to the matters to be considered in handling the guidelines for the „Regulation on Terminology, Forms and Preparation Methods of Financial Statements“ and other guidelines for other relevant and applicable regulations after public consultation

The FSA collected a public comments between May 2023 to June 2023 to seek input on revisions to the „Regulation on Terminology, Forms and Preparation Methods of Financial Statements“. These revisions aim to enhance transparency and provide clear guidelines for handling financial statements and related documents in the context of foreign company filings with the FSA.
Following this consultation, the FSA now has finalized the amendments for several regulations:
1. Regulation on Terminology, Forms and Preparation Methods of Financial Statements
2. Regulation on Terminology, Forms, and Preparation Methods of Interim Financial Statements
3. Regulation on Terminology, Forms and Preparation Methods of Quarterly Financial Statements
4. Cabinet Office Order on the System for Ensuring the Adequacy of Documents on Financial Calculation and of Other Information.
The main focus of these amendments is to clarify the criteria for situations where the FSA Commissioner deems that the filing of financial statements by a foreign company, either in its home country or outside Japan, does not negatively impact the public interest or investor protection when the company submits a Securities Registration Statement to the FSA.
During the public comment period, the FSA received a total of seven comments from two sources. For an overview of these comments and the FSA’s views on them, please refer to „Attachment 1.“ Additionally, the specific contents of the revisions can be found in „Attachment 2“ to „Attachment 5.“
The finalized amendments took effect on 30 June 2023.