About Bridgestone Corporation:
Bridgestone Corporation, headquartered in Tokyo, is the world’s largest tire and rubber company. In addition to tires for use in a wide variety of applications, it also manufactures a broad range of diversified products, which include industrial rubber and chemical products and sporting goods. Its products are sold in over 150 nations and territories around the world.
News - 2019
TOKYO (November 8, 2019) -- Bridgestone Corporation today announced that it will be voluntarily adopting the International Financial Reporting Standards (IFRS) for its consolidated financial statements from the fiscal year ending December 31, 2020. This move is meant to improve the quality of managerial accounting at the Bridgestone Group.
In conjunction with this change, the Company will also revise its reporting segments from the fiscal year ending December 31, 2020. Details are as follows.
1. Schedule for Transition to Disclosure Based on IFRS (Tentative)
|Disclosure Timing||Disclosure Content|
|February 2020||Announcement of financial results for the fiscal year ending December 31, 2019 (J-GAAP)|
|March 2020||Securities report for the fiscal year ending December 31, 2019 (J-GAAP)|
|May 2020||Announcement of financial results for the first quarter of the fiscal year ending December 31, 2020 (IFRS)|
|May 2020||Business report for the first quarter of the fiscal year ending December 31, 2020 (IFRS)|
Note: The consolidated performance forecasts for the fiscal year ending December 31, 2020, scheduled to be announced in February 2020 are planned to use year-on-year comparisons based on reference performance figures for the fiscal year ending December 31, 2019, that have been restated to employ IFRS and reflect the new reporting segments.
However, the details of these reference performance figures may be changed after performance has been finalized.
2. Utilization of Adjusted Operating Profit
In conjunction with the voluntary adoption of IFRS, the Company will utilize adjusted operating profit in place of the previously employed J-GAAP-based operating income.
Adjusted operating profit represents IFRS-based operating profit that has been adjusted for certain items.
Items for which adjusted operating profit is adjusted include business and factory restructuring expenses, impairment loss on goodwill, impairment loss on fixed assets, loss on disaster, insurance income, and other one-time income movements of significant amount.
3. Change in Reporting Segments
The Company plans to reorganize its prior business-based reporting segments and geographic location-based reporting segments to create new reporting segments from the perspective of disclosing performance information that is better matched to the Company's organizational structure. Disclosure will be uniformly conducted in accordance with the new segments from fiscal 2020. In addition, jurisdiction over the Indian market will be transferred from the prior China, Asia-Pacific segment to the new Europe, Russia, Middle East, India, and Africa segment.
1. New Reporting Segments
From the fiscal year ending December 31, 2020, the Company will reorganize its prior two business segments and four geographic segments to perform disclosure uniformly based on the four new segments.
This change is aimed at facilitating more accurate disclosure of business profit performance information based on the strategic business units (SBUs) that represent the business units used for managerial accounting purposes.
2. Export Earnings
Under the prior geographic segments, a portion of the export earnings from inter-SBU transactions for passenger car and truck and bus tires was included in the Japan segment. With the new segments, however, the Company will employ a full-consolidated method that entails calculating consolidated performance by attributing the aforementioned export earnings for standard tires to the SBU that performed the sale.
3. Transference of Jurisdiction for Indian Market
Following organizational restructuring, operations catering to the Indian market previously included in the China, Asia-Pacific segment will be transferred to the "Europe, Russia, Middle East and Africa" segment and thus be included in the new "Europe, Russia, Middle East, India, and Africa" segment from the fiscal year ending December 31, 2020.
4. Further revisions to reporting segments may be made in the future based on changes to the Company's organizational and performance management systems.
About Bridgestone Corporation: