26 November 2024
PricewaterhouseCoopers Japan LLC
PricewaterhouseCoopers Japan LLC (Head Office: Chiyoda-ku, Tokyo; CEO: Masataka Kubota; hereinafter ‘PricewaterhouseCoopers Japan’) and Takara Printing Co., Ltd. (Head Office: Toshima-ku, Tokyo; President and Representative Director: Kota Shirai; hereinafter ‘Takara Printing’) announced today the launch of a joint business relationship to bring English disclosure support services for annual securities reports and other disclosure documents. As Japanese stocks are attracting overseas investors’ attention, the need for English disclosures has been increasing. To cater to this growing need, Takara Printing, a leading company in the disclosure business, and PricewaterhouseCoopers Japan, an audit firm with extensive expertise in accounting and disclosure, will collaborate to provide English disclosure support services that contribute to the investment decisions of overseas investors.
https://www.pwc.com/jp/ja/services/assurance/financial-reporting/translation.html
Background
On 9 May 2024, the Tokyo Stock Exchange, Inc. (‘TSE’) announced the Revisions to the Securities Listing Regulations and Other Rules as Part of Provision of Listing Rules in Order to Expand English Disclosure in the Prime Market. Under the revised regulations and rules effective 1 April 2025, Prime Market-listed companies are required to disclose their financial and other timely disclosure information simultaneously in Japanese and English. They are also required to endeavour to disclose corporate information that is publicly available simultaneously in Japanese and English. *1
*1 Revisions to the Securities Listing Regulations and Other Rules as Part of Provision of Listing Rules in Order to Expand English Disclosure in the Prime Market issued on 9 May 2024 by TSE: https://www.jpx.co.jp/english/rules-participants/rules/revise/dh3otn00000066d7-att/outline.pdf
Prime Market companies and other Japanese companies are expected to expand their English disclosure and enhance their engagement with overseas investors to increase their corporate value.
Services provided in the joint business relationship
Preparing an English annual securities report, which contains comprehensive information necessary for overseas investors to determine corporate value from the company’s diverse information, such as management policy and financial information, requires a high level of knowledge and a wealth of experience in the three areas of disclosure, translation and accounting.
PricewaterhouseCoopers Japan and Takara Printing, which have knowledge and experience in these three areas, will offer support services for preparing English disclosure documents for overseas investors. These services will combine the strengths of PricewaterhouseCoopers Japan and Takara Printing, which have expertise and experience in these three areas, to deliver English disclosure support services that go beyond mere English translation.
With the aim of enhancing companies’ engagement with investors, we will first launch a Professional Review service covering the financial section of annual securities reports in January 2025. Takara Printing will hold a seminar to introduce and explain the service menu. *2
*2 Audit clients of PwC Japan LLC may not use certain services provided under the joint business relationship.
Professional Review
(1) Review type
| Type | Features |
| Pre-review |
|
| On-time review |
|
*The review in this service does not provide any assurance service.
(2) Nature of service
- Refine the English by understanding the substance of the accounting events
- Provide explanations of the translation for areas such as the application of new standards and accounting treatments specific to Japanese accounting standards
- If there are multiple options for translation, provide English expression options based on foreign peers’ and leading practices
(3) Covered disclosure documents
Annual securities reports
(4) Commencement of the service
January 2025
Future direction
Going forward, we plan to expand the scope of the joint business relationship and collaborate to solve challenges related to English disclosures and improve the quality, quantity and speed. This includes providing solutions to continuously improve the accuracy of the translation and promote the simultaneous filing of Japanese and English disclosures by optimising the financial closing, disclosure and English translation processes. We will develop various products and services and deliver them to listed companies by leveraging both companies’ expertise, thereby contributing to further development of the capital markets in Japan.
To fulfil PwC’s purpose of ‘building trust in society and solving important problems’ and Takara Printing’s commitment to ‘bridging the gap between financial administration and corporate activities’ and ‘providing exceptional services that will attract and impress customers’, PricewaterhouseCoopers Japan and Takara Printing aim to eliminate information asymmetry, such as differences in volume and timing between Japanese and English disclosures. They also aim to enable companies to use this English disclosure as an effective tool for strengthening engagement with overseas investors, making it a benefit rather than an additional burden.
About PricewaterhouseCoopers Japan LLC
PricewaterhouseCoopers Japan LLC provides audit and assurance services as well as broader assurance services (non-audit services) in Japan and is a member firm of the PwC global network. We provide high-quality audit services that meet global standards and are built on the trusted audit approaches and cutting-edge technologies that we have developed throughout the long history of the PwC network. We also leverage this knowledge to advise our clients through broader assurance services in a variety of fields, including accounting, internal controls and governance as well as cybersecurity, regulatory requirements, digitalisation and initial public offerings. Together with PwC Business Assurance LLC, PwC Sustainability LLC, PwC Risk Advisory LLC and PwC Research Institute LLC, we aim as trusted professionals to instill a newfound confidence in Japan's future with our Assurance Vision 2030.
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About Takara Printing Co., Ltd.
As a company supporting disclosures and preparation of IR-related documents, Takara Printing has been supporting information disclosure of listed companies and clients planning for IPO for approximately 70 years since its foundation. The company will help clients expand their corporate value by further refining its expertise based on the knowledge and know-how cultivated over time as a leading company in the disclosure and IR businesses.
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