Material deficiencies in internal control due to errors in consolidated financial reporting and measures to prevent recurrence
First written in FY2024. 14 of 28 entries say "Materialised", first in 2026-04-27. Latest entry: 2026-10-16.
No other company in this theme has enough history to compare yet.
- 2026-10-01Worsenednews.infoseek.co.jp
「However, on 29 September, Nidec announced that 岸田氏 would resign, citing "inappropriate conduct concerning financial reporting."」
The president resigned over inappropriate conduct concerning financial reporting, and the management's responsibility for issues related to internal control was newly reported. - FY2026MaterialisedAnnual report
「The investigation report identified numerous instances of improper accounting practices due to fraud and error at a wide range of locations within the company and its Group companies. Based on the third-party committee's final report, including the results of the company's self-inspection, the company has retrospectively corrected and restated misstatements arising from these improper accounting practices, including corrections of errors relating to matters that had not been corrected in prior years based on materiality and matters additionally identified during the investigation.」
Following the third-party committee's final report and the self-inspection, numerous improper accounting practices were confirmed, and prior-year financial statements were restated. The company also disclosed an operating loss of ¥518.978 billion and a loss attributable to owners of the parent of ¥564.624 billion for FY2026. - FY2026-H1WorsenedAnnual report
「At present, the investigation by the third-party committee and other internal investigations are ongoing. If misstatements are identified through the investigations, they could have a material and pervasive impact on the consolidated financial statements or financial statements.」
The third-party committee investigation and internal investigations into suspected improper accounting practices remain ongoing, and the company remains unable to reflect the possibility of a material and pervasive impact on the financial statements. - FY2025WorsenedAnnual report
「After identifying suspected improper accounting practices that could have a material impact on the consolidated financial statements as a whole, including discretionary adjustment of the timing of impairment losses on assets carrying asset-related risks, under the involvement or awareness of management of the company and Group companies, we determined that an objective investigation by a third-party committee independent of the company was necessary. On 3 September 2025, we established a third-party committee in accordance with the Guidelines for Third-Party Committees in Corporate Misconduct Cases prescribed by the Japan Federation of Bar Associations.」
In addition to errors in prior-year consolidation adjustments, the company identified suspicions including discretionary adjustments to the timing of impairment losses with the involvement or awareness of management and began an investigation by a third-party committee. - FY2024First statedAnnual report
「It was discovered that, at a consolidated subsidiary, the scope of items subject to certain consolidation adjustments for sales and other items involving intercompany transactions among the Group's consolidated subsidiaries had been incorrectly identified, resulting in overstated sales. We determined that this constituted a material deficiency requiring disclosure in the internal control over the financial closing and financial reporting processes.」
The overstatement of sales resulting from the incorrect identification of items subject to adjustments for intercompany transactions among consolidated subsidiaries was discovered, leading to amendments to prior years' annual securities reports and quarterly reports. Updates to the consolidation accounting policy, systems for gathering information, verification and approval procedures, training, and monitoring by the heads of accounting and finance are being implemented as measures to prevent recurrence.