Restatement of financial statements due to improper accounting practices and the risk that the investigation remains incomplete
First written in FY2026-H1. 7 of 18 entries say "Materialised", first in FY2026-H1. Latest entry: 2026-08-03.
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- FY2026WorsenedAnnual report
「The investigation found that, against a backdrop of excessive pressure from the company's top management to achieve sales or profit targets, a wide range of improper accounting practices had been carried out at the company and a considerable number of its subsidiaries and affiliates for the purpose of inflating sales and profits. These included overstating inventories, deferring impairment losses on assets, overstating and prematurely recognising sales, inflating sales through unnecessary intermediaries, avoiding the recognition of provisions, and capitalising expenditures that did not constitute assets.」
Regarding inappropriate accounting, the issue expanded to cover extensive accounting practices from fiscal 2019 through the first half of fiscal 2025, partial involvement by top management and other management personnel, and corrections to prior-year figures and internal controls. Revenue was revised downward by ¥64,714 million for the current fiscal year and ¥62,859 million for the previous fiscal year, and investigation-related expenses of ¥13,036 million were also recognized. - FY2026-H1MaterialisedAnnual report
「It was found that, at various companies within the Group, improper accounting had been conducted since prior fiscal years using a variety of methods, including bringing forward or deferring the recognition of revenue through falsified supporting documents and manipulated data, double-counting revenue, overstating inventory, deferring asset valuations, avoiding the recognition of provisions, and capitalizing expenditures that did not qualify as assets, against a backdrop of excessive pressure from the Company's senior management to meet sales or profit targets.」
An internal review of inventory at a consolidated subsidiary led to the discovery of improper accounting at multiple consolidated subsidiaries and the Company, resulting in the correction and restatement of prior-period financial statements. Revenue for the previous interim period was reduced by ¥3.353 billion, operating profit by ¥4.370 billion, and retained earnings at the beginning of the previous fiscal year by ¥36.596 billion. Matters for which the investigation is incomplete and additional internal reviews remain ongoing.