Discontinuation of Core Systems Development and Litigation Risk Coming to the Fore
First written in FY2016. 1 of 2 entries say "Materialised", first in FY2016. Latest entry: FY2017.
The whole theme swung hardest in 2018: 4 of 8 companies on the "Worse" side.
2 other companies' latest entry also says "Achieved".
- FY2017AchievedAnnual report
「This represents the reversal of unrealized profit that had been eliminated through intercompany transactions among consolidated companies relating to system development in prior fiscal years, because the litigation had ended and the profit was realized.」
The company discloses the reversal of unrealized profit from prior fiscal years on the basis that the litigation concerning core banking system development had ended. - FY2016MaterialisedAnnual report
「The company commissioned 日本アイ・ビー・エム株式会社 to develop a new core banking system governing its banking operations. However, because the development had to be discontinued for reasons attributable to that company, among other matters, the company filed a lawsuit against it with the Tokyo District Court on 6 March 2008 seeking compensation for the damages it had incurred.」
The company states that the litigation ended following the Supreme Court decision of 8 July 2015 and that a litigation loss of ¥24 million was recognized in the consolidated fiscal year under review.