Insufficient Supporting Documentation and Estimated Balance for Work-in-Process Inventory at a Chinese Subsidiary
First written in FY2018-Q1. 6 of 8 entries say "Restated". Latest entry: FY2021.
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- FY2021Cited as achievedAnnual report
「From the third quarter of the 111th fiscal year (fiscal year ending February 2017) through the third quarter of the 113th fiscal year (fiscal year ending February 2019), the Company received a qualified audit opinion because some supporting documentation relating to the recording of work-in-process at its consolidated Chinese subsidiary 無錫三和塑料製品有限公司 could not be verified.」
The lack of supporting documentation and estimation of work-in-process is no longer disclosed in the current-period notes and is cited as a matter relating to past audit opinions. - FY2019RestatedAnnual report
「The Company has conducted an investigation into the recording of work-in-process at its consolidated Chinese subsidiary 無錫三和塑料製品有限公司 as of the beginning of the previous consolidated fiscal year, but was unable to verify some of the supporting documentation for the recorded work-in-process. Accordingly, it estimated the work-in-process balance at the beginning of the previous consolidated fiscal year by applying the ratio of manufacturing costs to the work-in-process balance for fiscal 2013 through fiscal 2015 at the subsidiary to its manufacturing costs for December 2016.」
The Company continues to disclose the lack of supporting documentation and estimation-based calculation of the work-in-process balance at the Chinese subsidiary using prior-year cost ratios. The estimated balance at the beginning of the previous consolidated fiscal year was ¥40.917 million. - FY2019-Q3RestatedAnnual report
「The Company has conducted an investigation into the recording of work-in-process at its consolidated Chinese subsidiary 無錫三和塑料製品有限公司 as of the beginning of the previous consolidated fiscal year, but was unable to verify some of the supporting documentation for the recorded work-in-process. Accordingly, it estimated the work-in-process balance at the beginning of the previous consolidated fiscal year by applying the ratio of manufacturing costs to the work-in-process balance for fiscal 2013 through fiscal 2015 at the subsidiary to its manufacturing costs for December 2016.」
The Company continues to disclose the lack of supporting documentation and estimation-based calculation of the work-in-process balance at the Chinese subsidiary using prior-year cost ratios. The estimated balance at the beginning of the previous consolidated fiscal year was ¥40.917 million. - FY2019-Q2RestatedAnnual report
「The Company has conducted an investigation into the recording of work-in-process at its consolidated Chinese subsidiary 無錫三和塑料製品有限公司 as of the beginning of the previous consolidated fiscal year, but was unable to verify some of the supporting documentation for the recorded work-in-process. Accordingly, it estimated the work-in-process balance at the beginning of the previous consolidated fiscal year by applying the ratio of manufacturing costs to the work-in-process balance for fiscal 2013 through fiscal 2015 at the subsidiary to its manufacturing costs for December 2016.」
The Company continues to disclose the lack of supporting documentation and estimation-based calculation of the work-in-process balance at the Chinese subsidiary using prior-year cost ratios. The estimated balance at the beginning of the previous consolidated fiscal year was ¥40.917 million. - FY2019-Q1RestatedAnnual report
「The Company has conducted an investigation into the recording of work-in-process at its consolidated Chinese subsidiary 無錫三和塑料製品有限公司 as of the beginning of the previous consolidated fiscal year and the end of the previous first quarter, but was unable to verify some of the supporting documentation for the recorded work-in-process.」
The Company continues to disclose the lack of supporting documentation and estimation-based calculation of work-in-process at the Chinese subsidiary using prior-year cost ratios and inventory-count results. The estimated balances were ¥40.917 million at the beginning of the previous consolidated fiscal year and ¥64.371 million at the end of the previous first quarter. - FY2018-Q3RestatedAnnual report
「The Company has conducted an investigation into the recording of work-in-process at its consolidated Chinese subsidiary 無錫三和塑料製品有限公司 as of the end of the previous third quarter and the end of the previous consolidated fiscal year, but was unable to verify some of the supporting documentation for the recorded work-in-process. Accordingly, for the cumulative period through the previous third quarter, it estimated the work-in-process balance at the end of the previous third quarter by applying the ratio of manufacturing costs to the work-in-process balance for fiscal 2013 through fiscal 2015 at the subsidiary to its manufacturing costs for September 2016.」
The Company continues to disclose the lack of supporting documentation and estimation-based calculation of the work-in-process balance using prior-year cost ratios at the Chinese subsidiary. - FY2018-Q2RestatedAnnual report
「The Company has conducted an investigation into the recording of work-in-process at its consolidated Chinese subsidiary 無錫三和塑料製品有限公司 as of the end of the previous consolidated fiscal year, but was unable to verify some of the supporting documentation for the recorded work-in-process. Accordingly, for the end of the previous consolidated fiscal year, the Company estimated the work-in-process balance by applying the ratio of manufacturing costs to the work-in-process balance for fiscal 2013 through fiscal 2015 at the subsidiary to its manufacturing costs for December 2016, and prepared the consolidated financial statements for the end of the previous consolidated fiscal year on that basis.」
The Company continues to disclose the lack of supporting documentation and estimation-based calculation of the work-in-process balance at the Chinese subsidiary, indicating an ongoing issue in the accounting records and internal controls. - FY2018-Q1First statedAnnual report
「The Company has conducted an investigation into the recording of work-in-process at its consolidated Chinese subsidiary 無錫三和塑料製品有限公司 as of the end of the previous consolidated fiscal year and the end of the first quarter of the current consolidated fiscal period, but was unable to verify some of the supporting documentation for the recorded work-in-process. Accordingly, for the end of the previous consolidated fiscal year, the Company estimated the work-in-process balance by applying the ratio of manufacturing costs to the work-in-process balance for fiscal 2013 through fiscal 2015 at the subsidiary to its manufacturing costs for December 2016, and prepared the consolidated financial statements for the end of the previous consolidated fiscal year on that basis. For the end of the first quarter of the current consolidated fiscal period, the Company estimated the work-in-process balance using the balance of direct material costs as of the end of March 2017, calculated backward from the inventory count conducted at the subsidiary at the end of June 2017, and the proportion of direct material costs to manufacturing costs for fiscal 2014 and fiscal 2015, and prepared the quarterly consolidated financial statements for the end of the first quarter on that basis. The work-in-process balances relating to the subsidiary included the following amounts at the end of the previous consolidated fiscal year and the end of the first quarter of the current consolidated fiscal period: end of previous consolidated fiscal year: work-in-process ¥40.917 million; end of first quarter of current consolidated fiscal period: work-in-process ¥64.371 million.」
Because some supporting documentation for the recording of work-in-process at the Chinese subsidiary could not be verified, the consolidated financial statements were prepared using estimates based on prior-year cost ratios and inventory-count results. The estimated work-in-process balances were ¥40.917 million at the end of the previous consolidated fiscal year and ¥64.371 million at the end of the current first quarter.