Komori
Earnings8798Advance Create Co.,Ltd.Financials (excluding banks)

Notice Regarding the Publication of the Investigation Report by the Independent Committee

The published version of the Independent Committee's investigation report was disclosed. The investigation identified inappropriate accounting practices, including the early recognition of advertising revenue, overstatement of revenue from advertising-space sales transactions, capitalization of software costs, and deferral of outsourced expenses.

Worth reading
63In focus
Scored from 1 of 6 sections
Direction
Deterioration
Direction inferred from the company’s description.
Scale
7508
¥ million
Wording
Avoiding a definitive answer
How definitive the wording is.

Results for this period

Factors Behind Changes in Business Performance

Early recognition of advertising revenue, overstatement of revenue from advertising-space sales transactions, capitalization of software costs, and deferral of outsourced expenses

Disclosure regarding the going concern assumption

The document explains that prior-year securities reports stated that circumstances existed that raised substantial doubt about the going concern assumption, but the notes in this document itself are Not disclosed

Issued Shares at Period-End32,468,200 common shares and 37,186,700 Class A shares (as of 30 September 2025)
Results for this period
ItemDetails
Disclosure regarding the going concern assumptionThe document explains that prior-year securities reports stated that circumstances existed that raised substantial doubt about the going concern assumption, but the notes in this document itself are Not disclosed
Issued Shares at Period-End32,468,200 common shares and 37,186,700 Class A shares (as of 30 September 2025)
Factors Behind Changes in Business PerformanceEarly recognition of advertising revenue, overstatement of revenue from advertising-space sales transactions, capitalization of software costs, and deferral of outsourced expenses
Items this document does not state (35)
Fiscal Period ClassificationAccounting standardsConsolidated / non-consolidatedPeriod CoveredNet SalesOperating profitOrdinary incomeProfit attributable to owners of the parentNet income per shareOperating MarginEquity ratioTotal assetsNet assetsCash flows from operating activitiesCash flows from investing activitiesCash flows from financing activitiesCash and cash equivalents at end of periodFull-year earnings forecastRevision to Earnings ForecastAnnual Dividend ForecastPayout ratioShareholder Return PolicySegment revenueSegment profitRegional salesOrders received and order backlogDepreciation and amortizationImpairment lossBreakdown of extraordinary income (loss)Change in accounting policyChanges in the scope of consolidationMaterial subsequent eventsAvailability of Supplementary Financial Results MaterialsAvailability of Financial Results BriefingTreasury Shares at Period-End

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.

Suspicions arose regarding inappropriate accounting practices, including advertising transactions in prior fiscal years and the capitalization of software costs. Following an investigation by the Independent Committee, the resulting financial impact was determined.

How to read this page

This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
Notice Regarding the Publication of the Investigation Report by the Independent Committee | Advance Create Co.,Ltd. (8798) timely disclosure | Komori