Canon to absorb medical systems, transition to IFRS

Canon Inc. announced a simplified absorption-type company split, effective April 1, 2026. It will succeed all businesses of its wholly-owned subsidiary, Canon Medical Systems Corporation (CMSC), except for domestic sales, technical service, and maintenance. This move aims to make the medical business a core pillar, optimizing operations by integrating Canon's technology and expertise to drive profitability and growth.

In a related development, Canon also announced its voluntary adoption of International Financial Reporting Standards (IFRS) for its consolidated financial statements, replacing US GAAP. This transition is slated to begin with disclosures for the first quarter of fiscal year 2027, aiming to improve the quality of financial reporting and enhance international comparability.

The company split involves Canon succeeding CMSC's assets totaling 263,198 million yen and liabilities of 105,319 million yen as of December 31, 2024. This internal restructuring and the IFRS adoption are anticipated to have a minor impact on Canon's consolidated performance.