TOKYO, Mar 25 (Pulse News Wire) – Integral Corporation (5842.T) disclosed its consolidated financial statements and accounting treatment for subsidiaries and investment evaluations. According to the disclosure, the company adheres to International Financial Reporting Standards (IFRS).
For investments, IFRS requires fair value assessments through profit or loss for all subsidiaries except those providing related services such as advisory and management. As a result, several subsidiaries and funds held by Integral are evaluated at fair value rather than being included within the consolidation scope. The firm's consolidated income statement reflects fair value changes during the period, while the balance sheet shows the end-of-period fair value. Fair value assessments are conducted quarterly for portfolio companies and real estate assets. Methods vary based on factors such as whether the entity is publicly traded, time since investment, and asset type.
Generally, discounted cash flow (DCF) methods and comparable company analysis are used for private entities, while public companies are valued based on market prices. Non-public entities assessed within a year post-investment are typically valued at cost. Following valuation, the company adjusts its consolidated balance sheet and income statement according to its shareholding percentage. For instance, the fair value residual is reflected in the consolidated balance sheet, and changes in fair value are recorded in the income statement. Specific examples illustrate how different investment structures impact consolidation and fair value reporting.
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