New Japanese share price index refers to adoption or scheduled adoption of IFRS

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07 Nov 2013

The Japan Exchange Group, the Tokyo Stock Exchange and the Nikkei have announced that they will start to calculate a new index "JPX-Nikkei Index 400" from 6 January 6 2014. Among the qualitative factors for screening entities to be covered by the index is 'adoption or scheduled adoption of IFRS (pure IFRS)'.

Making the use of IFRSs a criterion for selecting public companies that comprise a new stock price index to be developed was already expected in Japan’s Business Accounting Council report, The Present Policy on the Application of International Financial Reporting Standards (IFRS).

The idea behind the new index is to comprise companies with high appeal for investors, which meet requirements of global investment standards. Thus, it is hoped, the new index will promote the appeal of Japanese corporations domestically and abroad, thereby aiming to revitalise the Japanese stock market.

Details of the new index "JPX-Nikkei Index 400" are available on the Tokyo Stock Exchange website.

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