Recognition of Loss on Valuation of Operating Investment Securities (Consolidated and Non-Consolidated) and Extraordinary Loss (Non-Consolidated)
Innovation Inc., INNOVATION HAYATE V Capital Investment Limited Partnership, INNOVATION V Capital Investment Limited Partnership, 株式会社 Innovation IFA Consulting, 株式会社 Innovation M&A Partners
Unlisted shares held by INNOVATION HAYATE V Capital Investment Limited Partnership and INNOVATION V Capital Investment Limited Partnership, and receivables from 株式会社 Innovation IFA Consulting and 株式会社 Innovation M&A Partners
The underlying value of the unlisted shares had declined significantly. The provision for allowance for doubtful accounts was recognized in light of the deteriorating financial condition of the 2 subsidiaries.
The Company recognized losses on the valuation of operating investment securities of ¥130 million in cost of sales in its consolidated financial statements and ¥126 million in its non-consolidated financial statements. It also recognized a ¥335 million provision for allowance for doubtful accounts as an extraordinary loss in its non-consolidated financial statements. The ¥335 million will be eliminated in the consolidated financial statements and will have no impact on consolidated results.
The fourth-quarter consolidated accounting period and fourth-quarter accounting period for the fiscal year ending March 2026 (1 January 2026 to 31 March 2026)
¥335 million (provision for allowance for doubtful accounts relating to receivables from 株式会社 Innovation IFA Consulting and 株式会社 Innovation M&A Partners)
| Item | Details |
|---|---|
| Event name | Recognition of Loss on Valuation of Operating Investment Securities (Consolidated and Non-Consolidated) and Extraordinary Loss (Non-Consolidated) |
| Date of occurrence | The fourth-quarter consolidated accounting period for the fiscal year ending March 2026 (1 January 2026 to 31 March 2026) and the fourth-quarter accounting period for the fiscal year ending March 2026 (1 January 2026 to 31 March 2026) |
| Subject Entity | Innovation Inc., INNOVATION HAYATE V Capital Investment Limited Partnership, INNOVATION V Capital Investment Limited Partnership, 株式会社 Innovation IFA Consulting, 株式会社 Innovation M&A Partners |
| Target Locations / Products | Unlisted shares held by INNOVATION HAYATE V Capital Investment Limited Partnership and INNOVATION V Capital Investment Limited Partnership, and receivables from 株式会社 Innovation IFA Consulting and 株式会社 Innovation M&A Partners |
| Cause | The underlying value of the unlisted shares had declined significantly. The provision for allowance for doubtful accounts was recognized in light of the deteriorating financial condition of the 2 subsidiaries. |
| Amount of Impact on Business Performance | The Company recognized losses on the valuation of operating investment securities of ¥130 million in cost of sales in its consolidated financial statements and ¥126 million in its non-consolidated financial statements. It also recognized a ¥335 million provision for allowance for doubtful accounts as an extraordinary loss in its non-consolidated financial statements. The ¥335 million will be eliminated in the consolidated financial statements and will have no impact on consolidated results. |
| Accounting period in which recognized | The fourth-quarter consolidated accounting period and fourth-quarter accounting period for the fiscal year ending March 2026 (1 January 2026 to 31 March 2026) |
| Amount of receivables at risk of non-collection or delayed collection | ¥335 million (provision for allowance for doubtful accounts relating to receivables from 株式会社 Innovation IFA Consulting and 株式会社 Innovation M&A Partners) |
Items this document does not state (17)
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 Company recognized losses on valuation because the underlying value of the unlisted shares it holds had declined significantly. It also recognized a provision for allowance for doubtful accounts in light of the deteriorating financial condition of 2 subsidiaries.