Building a stable portfolio through changes in the valuation method for foreign-currency-denominated securities

「The Group recognizes that including foreign-currency-denominated securities is beneficial in building a portfolio for medium- to long-term securities investment, and that, depending on market conditions, investing in foreign-currency-denominated foreign bonds funded with yen could improve earnings power. However, as exchange-rate fluctuations have recently increased, the current accounting method has left the Group exposed to short-term exchange-rate movements, making it difficult to pursue a medium- to long-term strategy. Accordingly, the company changed its accounting policy because it partially reviewed its investment policy beginning with the first quarter of the current consolidated accounting period with the aim of building a stable portfolio.」

「For translation differences relating to foreign-currency-denominated available-for-sale securities, the Group previously recognized translation differences arising from changes in fair value in foreign currencies as valuation differences on available-for-sale securities and treated other differences as foreign exchange gains or losses. Beginning with the first quarter of the current consolidated accounting period, it changed to a method of recognizing all such differences as valuation differences on available-for-sale securities. … Accordingly, the company changed its accounting policy because it had partially reviewed its investment policy beginning with the first quarter of the current consolidated accounting period with the aim of building a stable portfolio.」