Konoshima Chemical Co.,Ltd. [4026.T]
TOKYO, Jun 03 (Pulse News Wire) – Konoshima Chemical CO.,LTD. (4026.T) revised its fiscal year 2026 earnings forecast due to changes in pension calculations.
The revision was prompted by rising interest rates, leading to adjustments in discount rates used for pension liability calculations. As a result, the company reported a one-time gain of ¥262 million related to actuarial differences, which contributed to upward revisions in operating profit, ordinary profit, and net income forecasts. The company stated that since the implementation of pension accounting standards in 2001, it has consistently applied the practice of recognizing actuarial gains and losses in the period they occur.
However, recent significant increases in government bond yields have led to larger impacts on financial statements due to changes in discount rates. Despite considering a shift towards deferred recognition of such differences, the company decided against changing its accounting policy due to the need for reasonable justification and potential misinterpretation by investors. Konoshima Chemical emphasized that while the updated forecasts are based on currently available information, future performance could differ due to various factors.
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