Decision and Details
Publication of the public version of the Special Investigation Committee's investigation report
The issues and decisions required for timely recognition of the provision were not sufficiently organized or considered. Other factors included the concentration of authority in a particular officer, an inadequate framework within the accounting and finance departments for proactive examination and information gathering, and insufficient transmission of information to the Board of Directors.
The matter affects the consolidated financial statements for prior fiscal years, and the provision should have been recognized in the fiscal year ended March 2024. The specific amendments and impact amounts will be disclosed after the audit procedures and other processes are completed. The financial results for the third quarter of the fiscal year ending March 2026 are scheduled to be published after the amended reports have been filed.
| Item | Details |
|---|---|
| Matter Covered | Publication of the public version of the Special Investigation Committee's investigation report |
| Decision Date | 16 March 2026 |
| Implementation Date | 16 March 2026 (public version finalized and published; completed) |
| Period Covered | The investigation into this matter covered the period from January 2015 through the most recent period, while the investigation of similar matters covered the period from the fiscal year ended March 2020 through the most recent period. |
| Amount | Fiscal year ended March 2024: provision expense of ¥716.353 million and provision (non-current) of ¥716.518 million; fiscal year ended March 2025: accounts payable (current) of ¥143.303 million and long-term accounts payable (non-current) of ¥573.214 million |
| Quantity / scale | 76 subjects surveyed; 10 subjects covered by the digital forensics review; investigation period from 23 January to 13 March 2026 |
| Impact on Business Performance | The matter affects the consolidated financial statements for prior fiscal years, and the provision should have been recognized in the fiscal year ended March 2024. The specific amendments and impact amounts will be disclosed after the audit procedures and other processes are completed. The financial results for the third quarter of the fiscal year ending March 2026 are scheduled to be published after the amended reports have been filed. |
| Reason | The issues and decisions required for timely recognition of the provision were not sufficiently organized or considered. Other factors included the concentration of authority in a particular officer, an inadequate framework within the accounting and finance departments for proactive examination and information gathering, and insufficient transmission of information to the Board of Directors. |
| Governing Rule | Accounting Principles for Business Enterprises, Note 18 |
| Related previous disclosures | Notice Regarding Receipt of the Special Investigation Committee's Investigation Report dated 13 March 2026; the previous report published on 16 December 2024 |
| Future plans | The company will file amended reports for prior-period annual securities reports, quarterly securities reports, semi-annual securities reports, internal control reports, and the current fiscal year's semi-annual securities report, and will amend its earnings summary. After filing the amended reports, it will promptly publish the financial results for the third quarter of the fiscal year ending March 2026. Measures to prevent recurrence will be disclosed once determined. |
Items this document does not state (1)
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.The direct cause was identified as insufficient organization of the issues and decision-making required for timely recognition of the provision. The report also pointed to the concentration of authority in a particular officer, an inadequate framework within the accounting and finance departments for proactive examination and information gathering, and insufficient transmission of information to the Board of Directors.