Investigation into the Accounting Treatment of Cloud Business Transactions and Risk of Extraordinary Loss
First written in FY2016-Q3. 3 of 3 entries say "Materialised", first in FY2016-Q3. Latest entry: FY2017-Q3.
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- FY2017-Q3MaterialisedAnnual report
「This was mainly due to a decrease in cash and deposits resulting from payment of the special investigation costs incurred in the previous fiscal year.」
The special investigation costs related to the accounting treatment issue were paid and disclosed as a factor behind the decrease in cash and deposits during the quarter. - FY2016MaterialisedAnnual report
「The special investigation costs included in extraordinary losses arose because the Company's auditor, KPMG AZSA LLC, requested additional audit procedures for transactions from prior fiscal years. The Company established an internal investigation committee on 9 August 2016 to examine the accounting treatment of transactions in the cloud business between the Company, its subsidiary 株式会社READO and certain business partners, and transferred the investigation to an independent committee on 29 August 2016.」
Special investigation costs of ¥129.719 million were recorded as an extraordinary loss for the full fiscal year, indicating that the investigation was reflected in the financial results. - FY2016-Q3MaterialisedAnnual report
「The Company established an internal investigation committee on 9 August 2016 to examine the accounting treatment of transactions in the cloud business with certain business partners. On 29 August 2016, the investigation was transferred to an independent committee, which is conducting the investigation, and costs related to it are expected to be incurred. Although it is difficult to reasonably estimate the costs related to the investigation, based on certain assumptions and information currently available, the Company expects to record approximately ¥120 million in investigation-related costs as an extraordinary loss in the consolidated financial results for the fiscal year ended September 2016.」
The investigation into the accounting treatment has begun, with its transfer to an independent committee and an expected extraordinary loss of approximately ¥120 million disclosed.