Recognition of Extraordinary Gain and Extraordinary Loss in Connection with the Absorption-Type Merger of a Wholly Owned Subsidiary
WILLs Inc. (surviving company), 株式会社ネットマイル (absorbed company)
Accounting treatment associated with the absorption-type merger of 株式会社ネットマイル. The reversal of the allowance for doubtful accounts resulted from the Company's comprehensive assumption of liabilities, while the loss on the elimination of shares held in the absorbed subsidiary resulted from the difference between the net assets assumed and the carrying amount of the shares held in the absorbed subsidiary.
Extraordinary gain (reversal of allowance for doubtful accounts): ¥293 million; extraordinary loss (loss on the elimination of shares held in the absorbed subsidiary): ¥293 million
First quarter of the fiscal year ending December 2026, non-consolidated financial results
As the extraordinary loss will be offset by the extraordinary gain, the impact of the absorption-type merger on results is expected to be minor.
As there will no longer be any entities subject to consolidation, the Company will no longer prepare consolidated financial statements. The matter is reflected in the non-consolidated first-quarter earnings report for the fiscal year ending December 2026 released today.
| Item | Details |
|---|---|
| Event name | Recognition of Extraordinary Gain and Extraordinary Loss in Connection with the Absorption-Type Merger of a Wholly Owned Subsidiary |
| Date of occurrence | 17 January 2026 (date of the absorption-type merger) |
| Subject Entity | WILLs Inc. (surviving company), 株式会社ネットマイル (absorbed company) |
| Cause | Accounting treatment associated with the absorption-type merger of 株式会社ネットマイル. The reversal of the allowance for doubtful accounts resulted from the Company's comprehensive assumption of liabilities, while the loss on the elimination of shares held in the absorbed subsidiary resulted from the difference between the net assets assumed and the carrying amount of the shares held in the absorbed subsidiary. |
| Amount of Impact on Business Performance | Extraordinary gain (reversal of allowance for doubtful accounts): ¥293 million; extraordinary loss (loss on the elimination of shares held in the absorbed subsidiary): ¥293 million |
| Accounting period in which recognized | First quarter of the fiscal year ending December 2026, non-consolidated financial results |
| Impact on Earnings Forecast | As the extraordinary loss will be offset by the extraordinary gain, the impact of the absorption-type merger on results is expected to be minor. |
| Outlook | As there will no longer be any entities subject to consolidation, the Company will no longer prepare consolidated financial statements. The matter is reflected in the non-consolidated first-quarter earnings report for the fiscal year ending December 2026 released today. |
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 reversal of the allowance for doubtful accounts resulted from the Company's comprehensive assumption of 株式会社ネットマイル's liabilities. The loss on the elimination of shares held in the absorbed subsidiary resulted from the difference between the net assets assumed and the carrying amount of the subsidiary's shares held by the Company.