OSAKA, Japan (Jan. 26, 2012) — Toyo Tire & Rubber Co. Ltd. is planning to change its fiscal year accounting to coincide with the calendar year in order to improve the efficiency of its business operations.
Toyo said it will ask shareholders at its annual meeting in late June to approve the change from the current March 31 year-end system.
Toyo's move will put all of Japan's tire makers on a calendar-year reporting basis. Yokohama Rubber Co. Ltd. shareholders approved a similar proposal last year, changing its fiscal year accounting starting this year.
Toyo said conforming its accounting period with its overseas consolidated subsidiaries would enhance the timely and accurate disclosure of corporate information, and improve the efficiency of its business operations, including the budgetary process and performance management methods.
The move also prepares Toyo for possible new International Financial Reporting Standards (IFRS) requirements that may necessitate synchronization of the accounting periods among consolidated companies.
As a result of the change, Toyo's 2012 fiscal year will span a nine-month period from April 1 to Dec. 31.