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Disclosure of Financial Instruments by Fair Value Required

Revision of financial statements regulations concerning fair value of financial instruments

July 29, 2020

Wataru Saito

Daiki Fujino


◆On March 6, 2020, the Cabinet Office Order to amend the "Regulation on Terminology, Forms and Preparation Methods of Consolidated Financial Statements", etc. was promulgated and enforced to amend the Financial Statements Regulations in response to the publication of the "Accounting Standards for Fair Value Measurement" by ASBJ (Accounting Standards Board of Japan) on July 4, 2019.

◆The “Notes” section was expanded since more detailed notes were required regarding the fair value measurement of financial instruments according to level of input (assumptions used in the fair value measurement). In addition, notes were also required regarding disclosure of fair value of inventories held for trading purposes according to level of input.

◆In principle, this revision is effective for (consolidated) fiscal years beginning on or after April 1, 2021.

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