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Governance8798Advance Create Co.,Ltd.Financials (excluding banks)

Notice Regarding the Disclosure of Material Weaknesses in Internal Controls over Financial Reporting and the Filing of a Revised Internal Control Report

The Company corrected its internal control reports for the past 5 fiscal years and changed its assessment of internal control over financial reporting from effective to ineffective. This followed the identification, through an investigation by a third-party committee and other measures, of material deficiencies in advertising transactions, the capitalization of software assets, governance, financial closing and business processes.

Worth reading
72In focus
Scored from 2 of 5 sections
Direction
Deterioration
Direction inferred from the company’s description.
Scale
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Displayed only when the document provides numerical figures.
Wording
Definitive
How definitive the wording is.

Governance structure

Company with an Audit & Supervisory Board
Committee2
NominationCompensation and Governance Committee
Changes this time

For the internal control reports covering the fiscal years from the fiscal year ended September 2021 through the fiscal year ended September 2025, the Company corrected its assessment from effective to ineffective due to disclosable material deficiencies.

Governance structure
ItemDetails
Corporate Governance StructureCompany with an Audit & Supervisory Board
CommitteeNomination, Compensation and Governance Committee (percentage of outside members: Not disclosed)
Changes this timeFor the internal control reports covering the fiscal years from the fiscal year ended September 2021 through the fiscal year ended September 2025, the Company corrected its assessment from effective to ineffective due to disclosable material deficiencies.
Items this document does not state (5)
Number of directorsNumber of independent officersPolicy on cross-shareholdingsTakeover defensesControlling shareholder

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.

In addition to errors in the recognition of advertising revenue at a consolidated subsidiary, improper accounting treatment was identified at the Company and its consolidated subsidiaries in prior periods, including advertising transactions and the capitalization of software. The Company cited ineffective governance, inadequate company-wide internal controls, insufficient staffing for financial closing, and insufficient risk awareness in standalone financial closing and business processes as the causes.

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 Disclosure of Material Weaknesses in Internal Controls over Financial Reporting and the Filing of a Revised Internal Control Report | Advance Create Co.,Ltd. (8798) timely disclosure | Komori