Logo of Phnom Penh Post newspaper Phnom Penh Post - Japan eyes cutting quarterly business reporting rules

Japan eyes cutting quarterly business reporting rules

Content image - Phnom Penh Post
Reports are provided to media outlets’ inboxes at the Tokyo Stock Exchange in Chuo Ward, in November 2020. HE YOMIURI SHIMBUN (JAPAN)

Japan eyes cutting quarterly business reporting rules

A rule requiring Japanese companies to report their performance to the government every three months is likely to be scrapped, the Yomiuri Shimbun has learned.

Companies that raise funds from investors through the issuance of stocks or bonds are required to submit quarterly reports to the finance ministry.

However, the business community has called for a review of the practice, citing the heavy administrative burden as it overlaps with the quarterly financial briefings listed companies have to submit to bourses such as the Tokyo Stock Exchange.

It has also been claimed that quarterly reports might encourage businesses to pursue short-term profits.

Since taking office, Prime Minister Fumio Kishida has vowed to review corporate disclosure rules as one of the pillars of his “new form of capitalism” economic policy, based on his view that the current rules have led to undesirable corporate behaviour that prioritises profit.

The Financial Services Agency plans to submit a bill to revise the Financial Instruments and Exchange Law to the ordinary Diet session next year at the earliest, aiming to scrap the rule on quarterly business disclosure reports by April 2024.

Under the planned revision, listed companies would still submit quarterly financial briefings to stock exchanges, but the government is considering whether to make the reports voluntary.

The quarterly reports companies are currently required to submit to the government are in addition to annual and six-month reports.

For companies whose business year ends in March, the reports include cumulative sales and profits as of the end of June and December, and the status of assets and liabilities. Misstatements are subject to penalties.

The government aims to reduce the burden of information disclosure as companies’ operations are expanding amid efforts to tackle decarbonisation and respond to human rights issues.

In Europe, Britain and France have abolished compulsory disclosure for listed companies, and Germany has also narrowed down the companies subject to such obligations.



  • Bareknuckle champion wants Kun Khmer fighter

    Dave Leduc, who is the current openweight Lethwei boxing champion in Myanmar, has announced that he will travel to Cambodia this year to challenge SEA Games gold medallist Prum Samnang any time that is convenient, after their planned match later this month in Slovakia was

  • Struggling Battambang artist dreams of staging full-scale gallery exhibition

    Leav Kimchhoth, a 55-year-old artist from Battambang province, is a familiar face to locals and tourists alike on the streets of the riverside in Phnom Penh. The one-armed painter and illustrator often hawks his work near the night market on weekends and public holidays. He

  • Five-year-old Hanuman dances his way into hearts of Cambodia

    A young talent from a new-established settlement has emerged, captivating the online world with his mesmerising performances of the traditional Cambodian monkey dance. Roeun Kakada is a five-year-old prodigy who has taken the social media sphere by storm with his exceptional dance skills and dedication

  • Fresh Covid warnings as Thai hospital fills

    A senior health official reminds the public to remain vigilant, as neighbouring countries experience an increase in Covid-19 cases, with the latest surge appearing to be a result of the Omicron XBB.1.5 sub-variant. Or Vandine, secretary of state and spokeswoman for the Ministry of Health,

  • New Law on Taxation comes into effect

    Cambodia has enacted the eagerly-awaited new Law on Taxation, which aims to improve the national tax regime’s compliance with present and future international standards and economic conditions; encourage accountability, effectiveness and transparency in the collection process; and promote investment in the Kingdom. King Norodom

  • PM warns of int’l election interference

    With the national election scheduled to take place in less than two months, Prime Minister Hun Sen has warned foreign nations and their diplomats not to interfere into Cambodia’s domestic affairs. He also hinted that their statements on court verdicts handed down to any