Notice Regarding Voluntary Adoption of International Financial Reporting Standards (IFRS Accounting Standards)
Merchant Bankers Co., Ltd. has resolved at today's board meeting to voluntarily adopt International Financial Reporting Standards (IFRS Accounting Standards) for its consolidated financial statements starting from the end of the fiscal year ending October 2026. This shift from traditional Japanese standards aims to enhance corporate value by better reflecting M&A and equity investment performance.
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- 📰 Published: April 14, 2026 at 19:30
- 🔍 Collected: April 14, 2026 at 11:01
- 🤖 AI Analyzed: April 16, 2026 at 17:48 (54h 46m after Collected)
Merchant Bankers Co., Ltd. (hereinafter referred to as Merchant Co.) announced today that at its board of directors meeting, it resolved to voluntarily adopt International Financial Reporting Standards (hereinafter referred to as "IFRS Accounting Standards") for the consolidated financial statements of the Merchant Co. Group, changing from the conventional Japanese standards, starting from the end of the fiscal year ending October 2026.
As an investment company, Merchant Co. is shifting its portfolio from real estate-centric investments, which previously offered stable rental income, to M&A and equity investments, which are expected to yield higher profitability.
By changing to IFRS Accounting Standards, while continuing to strictly fair value investment projects, the company aims to improve corporate value as an investment company by:
① For M&A, goodwill required under Japanese accounting standards will not be subject to amortization, allowing for a more accurate reflection of investment returns in Merchant Co.'s consolidated financial statements.
② Unrealized gains on investment projects, which are not reflected in consolidated financial statements under Japanese accounting standards unless sold, will be reflected.
This will enable the company to pursue M&A and equity investment projects suitable for IFRS Accounting Standards and enhance its corporate value as an investment company.
That's all.
As an investment company, Merchant Co. is shifting its portfolio from real estate-centric investments, which previously offered stable rental income, to M&A and equity investments, which are expected to yield higher profitability.
By changing to IFRS Accounting Standards, while continuing to strictly fair value investment projects, the company aims to improve corporate value as an investment company by:
① For M&A, goodwill required under Japanese accounting standards will not be subject to amortization, allowing for a more accurate reflection of investment returns in Merchant Co.'s consolidated financial statements.
② Unrealized gains on investment projects, which are not reflected in consolidated financial statements under Japanese accounting standards unless sold, will be reflected.
This will enable the company to pursue M&A and equity investment projects suitable for IFRS Accounting Standards and enhance its corporate value as an investment company.
That's all.
FAQ
When will Merchant Bankers Co., Ltd. apply IFRS Accounting Standards?
It will voluntarily apply IFRS Accounting Standards to its consolidated financial statements starting from the end of the fiscal year ending October 2026.
What is the purpose of applying IFRS Accounting Standards?
The purpose is to enhance corporate value as an investment company by excluding goodwill from amortization in M&A and reflecting unrealized gains on investment projects in the consolidated financial statements.