Improper expenditures and accounting treatment, and risk of non-recovery, at a consolidated subsidiary
First written in FY2023. 3 of 8 entries say "Worsened", first in FY2024-Q1. Latest entry: FY2026.
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- FY2026Allowance for doubtful accounts balance updatedAnnual report
「Long-term accounts receivable 2,697,843 Allowance for doubtful accounts △2,585,337」
Long-term accounts receivable arising from inappropriate expenditures amounted to ¥2.697843 billion, and the allowance for doubtful accounts amounted to ¥2.585337 billion. A reversal of the allowance for doubtful accounts has been recognized since the previous year, but no collection completion was reported. - 2026-05-13OtherRevision of earnings forecasts
「Long-term accounts receivable 2,733,843 2,697,843\nAllowance for doubtful accounts △2,737,954 △2,588,837」
Both long-term accounts receivable and the allowance for doubtful accounts decreased, but there is no statement indicating that collection had been completed. - FY2026-H1Allowance for doubtful accounts balance updatedAnnual report
「Reversal of allowance for doubtful accounts — 148,506」
Long-term accounts receivable arising from inappropriate expenditures remained unchanged at ¥2.733843 billion, while a reversal of allowance for doubtful accounts of ¥148.506 million was recognized, bringing the allowance for doubtful accounts balance to ¥2.589277 billion. No new collection completion was reported regarding the situation based on the expectation of non-recovery. - FY2025RestatedAnnual report
「Long-term accounts receivable are classified as loans and receivables with collection concerns when such concerns are identified for the relevant collection counterparty, and collectibility is assessed individually.」
Long-term accounts receivable arising from inappropriate expenditures amounted to ¥2.733843 billion, with an allowance for doubtful accounts of the same amount. The situation continues to be based on the expectation that the amount will be uncollectible. - FY2024WorsenedAnnual report
「Long-term accounts receivable are classified as loans and receivables with collection concerns when such concerns are identified for the relevant collection counterparty, and collectibility is assessed individually. During the current consolidated fiscal year, the Company determined that almost the entire ending balance of long-term accounts receivable arising from inappropriate expenditures was expected to be uncollectible, and recognized an allowance for doubtful accounts on that basis.」
Long-term accounts receivable arising from inappropriate expenditures increased to ¥2.747843 billion, and an allowance for doubtful accounts of the same amount was recognized. The expectation of non-recovery remains. - FY2024-Q2WorsenedAnnual report
「Expenses related to corrections of prior-year financial statements — 78,293」
Expenses of ¥78.293 million related to corrections of prior-year financial statements in connection with inappropriate expenditures and accounting treatment were recognized as an extraordinary loss in the cumulative second quarter period. - FY2024-Q1WorsenedAnnual report
「As a result of the subsidiary’s retrospective restatement of its accounts in connection with inappropriate expenditures, it was determined that the subsidiary had no distributable profit for the fiscal years ended March 2021 and March 2022, meaning that the dividends paid at the time ultimately exceeded distributable profit. In response, the Company’s Board of Directors resolved at its meeting held on 31 July 2023 to return an amount equivalent to the dividends received.」
The retrospective restatement of the subsidiary’s accounts due to inappropriate expenditures revealed that dividends from previous fiscal years had exceeded distributable profit, and the Board of Directors resolved to return an amount equivalent to the dividends received. This describes additional effects of the previously identified inappropriate expenditures and accounting treatment. - FY2023MaterialisedAnnual report
「An internal investigation found on 23 May 2023 that an employee of the Company had made inappropriate expenditures at a consolidated subsidiary. During the current consolidated fiscal year, the Company determined that almost the entire ending balance of long-term accounts receivable arising from the inappropriate expenditures was expected to be uncollectible, and recognized an allowance for doubtful accounts on that basis.」
Inappropriate expenditures and accounting treatment at a consolidated subsidiary were confirmed, and an allowance for doubtful accounts of ¥2.525337 billion was recognized against long-term accounts receivable of ¥2.530337 billion. An investigation was conducted by a third-party committee, which identified issues with internal controls and corporate governance.