Contingent losses from improper cost accounting and ordering practices
First written in FY2018-Q1. 9 of 15 entries say "Mitigated", first in FY2019-Q1. Latest entry: FY2022.
No other company in this theme has enough history to compare yet.
- FY2022MitigatedAnnual report
「Provision for contingent losses ¥215 million — Expenses related to contingent losses — ¥142 million」
The provision for contingent losses decreased from ¥215 million at the end of the previous fiscal year to zero at the end of the fiscal year. Meanwhile, ¥142 million in expenses related to contingent losses was recorded for the fiscal year. - FY2022-Q3MitigatedAnnual report
「Provision for contingent losses ¥215 million — Expenses related to contingent losses — ¥142 million」
The provision for contingent losses decreased from ¥215 million at the end of the previous fiscal year to zero at the end of the third quarter. Meanwhile, ¥142 million in expenses related to contingent losses was recorded for the cumulative third quarter. - FY2022-Q2WorsenedAnnual report
「This was primarily due to an increase in the provision for contingent losses. Provision expense for contingent losses — ¥142 million」
The provision for contingent losses increased from ¥215 million at the end of the previous fiscal year to ¥358 million at the end of the second quarter, and provision expense for contingent losses of ¥142 million was recorded for the cumulative second quarter. - FY2022-Q1WorsenedAnnual report
「Provision for contingent losses ¥215 million ¥323 million Provision expense for contingent losses — ¥107 million」
The provision for contingent losses increased from ¥215 million at the end of the previous fiscal year to ¥323 million at the end of the first quarter, and provision expense for contingent losses of ¥107 million was recorded as an extraordinary loss. - FY2021MitigatedAnnual report
「Provision for contingent losses ¥238 million ¥215 million」
The provision for contingent losses decreased from ¥238 million at the end of the previous fiscal year to ¥215 million at the end of the fiscal year. - FY2021-Q2MitigatedAnnual report
「Provision for contingent losses ¥238 million ¥215 million」
The provision for contingent losses decreased from ¥238 million at the end of the previous fiscal year to ¥215 million at the end of the second quarter. - FY2020MitigatedAnnual report
「Although the Company has determined that it has no payment obligation, it recorded provision expense for contingent losses of ¥215 million as an extraordinary loss on the consolidated income statement for the fiscal year.」
Although provision expense for contingent losses of ¥215 million related to the litigation was recorded, the provision balance at the end of the fiscal year decreased from ¥250 million to ¥238 million. - FY2020-Q2MitigatedAnnual report
「Non-current liabilities totaled ¥1,362 million, down ¥284 million from ¥1,646 million at the end of the previous fiscal year. This was primarily due to a decrease in the provision for contingent losses. Provision for contingent losses ¥250 million ¥22 million」
The provision for contingent losses decreased substantially from ¥250 million at the end of the previous fiscal year to ¥22 million at the end of the second quarter, reducing the related provision balance. - FY2020-Q1MitigatedAnnual report
「Provision for contingent losses ¥250.166 million ¥248.166 million」
The provision for contingent losses decreased from ¥250.166 million at the end of the previous fiscal year to ¥248.166 million at the end of the first quarter. The provision balance for existing contingent losses arising from improper ordering activities decreased slightly. - FY2019-Q2MitigatedAnnual report
「Provision for contingent losses ¥288.383 million ¥273.805 million Provision expense for contingent losses ¥408.383 million —」
The provision for contingent losses decreased from ¥288.383 million at the end of the previous fiscal year to ¥273.805 million, and no provision expense for contingent losses was recorded for the cumulative second quarter. - FY2019-Q1MitigatedAnnual report
「Provision for contingent losses ¥288.383 million ¥273.805 million Provision expense for contingent losses ¥409.270 million —」
The provision for contingent losses decreased from ¥288.383 million at the end of the previous fiscal year to ¥273.805 million, and no provision expense for contingent losses was recorded for the first quarter. There is no mention of the risk arising from the improper ordering activities themselves. - FY2018The provision for contingent losses decreased.Annual report
「The Company recognizes that an obligation to pay the companies to which orders were placed may arise from improper ordering activities carried out by its employees. Although the Company has determined that it has no payment obligation in connection with these activities, it recorded a provision for contingent losses of ¥288.383 million as a non-current liability on the consolidated balance sheet for the fiscal year, for amounts that can reasonably be estimated as potentially payable by the Company. It also recorded a provision for contingent losses of ¥288.383 million as an extraordinary loss on the consolidated income statement.」
Although the possibility of a payment obligation arising from improper ordering activities continues, the provision for contingent losses decreased from ¥408.383 million to ¥288.383 million. - FY2018-Q3RestatedAnnual report
「The Company recognizes that an obligation to pay the companies to which orders were placed may arise from improper ordering activities carried out by its employees. Although the Company has determined that it has no payment obligation in connection with these activities, it recorded a provision for contingent losses of ¥408.383 million as a non-current liability on the quarterly consolidated balance sheet for the cumulative third quarter, for amounts that can reasonably be estimated as potentially payable by the Company. It also recorded a provision for contingent losses of ¥408.383 million as an extraordinary loss on the quarterly consolidated income statement.」
The possibility of payment obligations arising from improper ordering activities and the recognition of a ¥408.383 million provision for contingent losses and provision expense continue. - FY2018-Q2RestatedAnnual report
「The Company recognizes that an obligation to pay the companies to which orders were placed may arise from improper ordering activities carried out by its employees. Although the Company has determined that it has no payment obligation in connection with these activities, it recorded a provision for contingent losses of ¥408.383 million as a non-current liability on the quarterly consolidated balance sheet for the cumulative second quarter, for amounts that can reasonably be estimated as potentially payable by the Company. It also recorded a provision for contingent losses of ¥408.383 million as an extraordinary loss on the quarterly consolidated income statement.」
The possibility of payment obligations arising from improper ordering activities and the provision for contingent losses continue to be recognized. - FY2018-Q1MaterialisedAnnual report
「As a result of recognizing ¥477 million in cost of sales and ¥490 million as an extraordinary loss for the provision for contingent losses due to improper cost accounting, improper ordering practices and other issues identified within the group, operating profit was ¥1,287 million, down 30.3% year on year, ordinary profit was ¥1,427 million, down 17.9%, and net income attributable to owners of the parent was ¥550 million, down 65.8%. The company recognizes that payment obligations to suppliers may arise based on improper ordering practices by its employees. Although the company has determined that it has no payment obligation in connection with these improper ordering practices, it recognized ¥409,270 thousand as a provision for contingent losses under non-current liabilities on the consolidated balance sheet for the first quarter, to the extent that the amount potentially borne by the company could be reasonably estimated. It also recognized ¥409,270 thousand as an expense for provision for contingent losses under extraordinary losses on the consolidated income statement for the first quarter.」
Improper cost accounting and improper ordering practices by employees were identified during the first quarter, and the company recognized ¥477 million in cost of sales and a ¥409,270 thousand provision for contingent losses. These items reduced operating profit, ordinary profit and net income attributable to owners of the parent.