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Governance4069BlueMeme Inc.Information and Communications, Services and Others

Notice Regarding a Material Weakness in Internal Control over Financial Reporting

Material errors were identified in the revenue recognition and accounting treatment of outsourcing expenses in prior years, and the company disclosed that its internal control over financial reporting was ineffective. It amended the related securities reports and other disclosures from prior years and stated that it would implement measures to prevent recurrence.

Worth reading
89Important
Scored from 1 of 5 sections
Direction
Deterioration
Direction inferred from the company’s description.
Scale
30000
Thousands of yen (amount of overstated revenue)
Wording
Definitive
How definitive the wording is.

Governance structure

Company with an Audit & Supervisory Board
Changes this time

The company stated that its internal control over financial reporting was ineffective because it had material deficiencies requiring disclosure. It also filed amended reports for the 16th through 19th fiscal years.

Governance structure
ItemDetails
Corporate Governance StructureCompany with an Audit & Supervisory Board
Changes this timeThe company stated that its internal control over financial reporting was ineffective because it had material deficiencies requiring disclosure. It also filed amended reports for the 16th through 19th fiscal years.
Items this document does not state (6)
Number of directorsNumber of independent officersCommitteePolicy on cross-shareholdingsTakeover defensesControlling shareholder

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 Special Investigation Committee’s investigation found that substantially free transactions had been recorded as paid sales and that a memorandum agreeing to repayment had been concealed, with the matter handled by increasing outsourcing expenses. In addition, deficiencies were identified in governance over transactions led by senior management, the sales and outsourcing processes, and the internal whistleblowing system.

How to read this page

This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
Notice Regarding a Material Weakness in Internal Control over Financial Reporting | BlueMeme Inc. (4069) timely disclosure | Komori