TOKYO (Dec. 20, 2010)—Yokohama Rubber Co. Ltd. is planning to change its fiscal accounting period to a calendar-year schedule from the April 1 to March 31 schedule it has used for decades.
The change, if approved by shareholders at the annual general meeting in late June, would take effect starting Jan. 1, 2012, and result in a one-time, nine-month fiscal year ending Dec. 31, 2011, Yokohama said.
The proposed change is to align the fiscal accounting periods at the parent company and its Japanese subsidiaries with the January to December fiscal periods employed by most of Yokohama's overseas subsidiaries, the company said. The change should help improve efficiency in budgeting, fiscal management and other phases of management and operations.
The change also will bring Yokohama into conformance with an important element of the International Financial Reporting Standards, which provide that all the corporate members of a consolidated financial entity should employ the same fiscal accounting period.
Adoption of the International Financial Reporting Standards is under consideration, Yokohama said.