Recognition of Extraordinary Income, Extraordinary Loss, Non-Operating Income and Non-Operating Expenses, and Changes in the Accounting Treatment of a Cryptocurrency-Denominated Fund
The filing company, its consolidated subsidiary 株式会社コーエン, the Company and its consolidated subsidiaries, and its equity-method affiliate AltPlusInc.
Store assets and other assets held by the Company and its consolidated subsidiaries, Bitcoin (BTC), and the BTC-denominated fund
The purchase price allocation for コーエン had not been completed, the future recoverability of store assets and other assets was assessed, the equity-method share of the profit or loss of AltPlusInc. was recognized, and the accounting treatment of the cryptocurrency-denominated fund was reviewed following discussions with the audit firm
Gain on negative goodwill of ¥664 million (extraordinary income), impairment loss of ¥66 million (extraordinary loss), equity-method investment loss of ¥37 million (non-operating expenses), cryptocurrency valuation gain of ¥93 million (non-operating income), and valuation difference on other securities of ¥46 million (net assets); compared with the initial policy, net sales decreased by ¥161 million and ordinary income decreased by ¥67 million
Cumulative consolidated first-quarter period of the fiscal year ending February 2027 (1 March 2026 to 31 May 2026)
The gain on negative goodwill was already included in the previous consolidated earnings forecasts, but its recognition has been moved from the second half to the first quarter, and the amount has been changed from ¥684 million to ¥664 million. The consolidated earnings forecasts for the cumulative second-quarter period and the full fiscal year remain unchanged at this time
Company response
The accounting treatment was reviewed following discussions with the audit firm. The audit firm’s name and information on the establishment of a third-party committee or special investigation committee are not disclosed
The amount of the gain on negative goodwill may change depending on the finalization of the purchase price allocation and other factors. If a revision to the earnings forecasts becomes necessary, the Company will promptly make an announcement.
The disclosure states that the Company will promptly make an announcement if a revision to the earnings forecasts becomes necessary
| Item | Details |
|---|---|
| Event name | Recognition of Extraordinary Income, Extraordinary Loss, Non-Operating Income and Non-Operating Expenses, and Changes in the Accounting Treatment of a Cryptocurrency-Denominated Fund |
| Date of occurrence | 2 March 2026 (acquisition of all shares of 株式会社コーエン) and 31 March 2026 (investment in the BTC-denominated fund); period subject to recognition: 1 March 2026 to 31 May 2026 |
| Subject Entity | The filing company, its consolidated subsidiary 株式会社コーエン, the Company and its consolidated subsidiaries, and its equity-method affiliate AltPlusInc. |
| Target Locations / Products | Store assets and other assets held by the Company and its consolidated subsidiaries, Bitcoin (BTC), and the BTC-denominated fund |
| Cause | The purchase price allocation for コーエン had not been completed, the future recoverability of store assets and other assets was assessed, the equity-method share of the profit or loss of AltPlusInc. was recognized, and the accounting treatment of the cryptocurrency-denominated fund was reviewed following discussions with the audit firm |
| Amount of Impact on Business Performance | Gain on negative goodwill of ¥664 million (extraordinary income), impairment loss of ¥66 million (extraordinary loss), equity-method investment loss of ¥37 million (non-operating expenses), cryptocurrency valuation gain of ¥93 million (non-operating income), and valuation difference on other securities of ¥46 million (net assets); compared with the initial policy, net sales decreased by ¥161 million and ordinary income decreased by ¥67 million |
| Accounting period in which recognized | Cumulative consolidated first-quarter period of the fiscal year ending February 2027 (1 March 2026 to 31 May 2026) |
| Impact on Earnings Forecast | The gain on negative goodwill was already included in the previous consolidated earnings forecasts, but its recognition has been moved from the second half to the first quarter, and the amount has been changed from ¥684 million to ¥664 million. The consolidated earnings forecasts for the cumulative second-quarter period and the full fiscal year remain unchanged at this time |
| Investigation structure | The accounting treatment was reviewed following discussions with the audit firm. The audit firm’s name and information on the establishment of a third-party committee or special investigation committee are not disclosed |
| Outlook | The amount of the gain on negative goodwill may change depending on the finalization of the purchase price allocation and other factors. If a revision to the earnings forecasts becomes necessary, the Company will promptly make an announcement. |
| Planned follow-up disclosure | The disclosure states that the Company will promptly make an announcement if a revision to the earnings forecasts becomes necessary |
Items this document does not state (14)
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.Because the purchase price allocation for コーエン had not been completed, provisional business combination accounting was applied and a gain on negative goodwill was recognized. Following an assessment of the future recoverability of store assets and other assets, an impairment loss was recognized. For the cryptocurrency-denominated fund, the accounting treatment was reviewed following discussions with the audit firm, and valuation gains arising during the period before the investment was made were recognized as non-operating income rather than net sales.