Recording of extraordinary income and extraordinary loss
The Company (Advance Create Co.,Ltd.) and its wholly owned subsidiary 株式会社保険市場
The Tokyo Branch, and certain advertising transactions and software capitalization in prior years at the Company and 株式会社保険市場
The consolidation of floors at the Tokyo Branch, declines in the profitability of fixed assets and other matters, guarantees of liabilities and lease cancellations, as well as疑義 regarding inappropriate accounting practices in certain advertising transactions and software capitalization in prior years
Extraordinary income: ¥70 million in compensation received and ¥41.463 million in gain on reversal of asset retirement obligations. Extraordinary losses: ¥99.802 million in impairment losses, ¥16.506 million in provision for losses on guarantees of liabilities, and ¥4.032 million in loss on lease cancellation. Investigation costs and costs related to corrections to prior-year financial statements and other matters are expected to total approximately ¥524 million and are scheduled to be recognized as extraordinary losses.
The above extraordinary income and extraordinary losses were recognized in the second quarter of the fiscal year ending September 2026. Investigation costs and costs related to corrections to prior-year financial statements and other matters will be recognized from the third quarter of the fiscal year ending September 2026 onward.
The impact on results of recognizing the above extraordinary losses was reflected in the financial results summary for the second quarter of the fiscal year ending September 2026 dated 14 August 2026. Investigation costs and other expenses are scheduled to be recognized from the third-quarter results onward.
Related procedures
Investigation by a third-party committee
Company response
Investigation by a third-party committee. The chairperson's name and establishment date are Not disclosed.
The Company plans to recognize investigation costs and costs related to corrections to prior-year financial statements and other matters as extraordinary losses from the third-quarter financial results for the fiscal year ending September 2026 onward. The costs are currently being compiled, and as of today, are expected to total approximately ¥524 million.
| Item | Details |
|---|---|
| Event name | Recording of extraordinary income and extraordinary loss |
| Date of occurrence | Recognized in the consolidated financial statements for the second quarter of the fiscal year ending September 2026 (1 January 2026 to 31 March 2026). The date the investigation report was received from the third-party committee was 31 July 2026. |
| Date recognized / date notice received | 31 July 2026 (the investigation report was received from the third-party committee) |
| Subject Entity | The Company (Advance Create Co.,Ltd.) and its wholly owned subsidiary 株式会社保険市場 |
| Target Locations / Products | The Tokyo Branch, and certain advertising transactions and software capitalization in prior years at the Company and 株式会社保険市場 |
| Cause | The consolidation of floors at the Tokyo Branch, declines in the profitability of fixed assets and other matters, guarantees of liabilities and lease cancellations, as well as疑義 regarding inappropriate accounting practices in certain advertising transactions and software capitalization in prior years |
| Amount of Impact on Business Performance | Extraordinary income: ¥70 million in compensation received and ¥41.463 million in gain on reversal of asset retirement obligations. Extraordinary losses: ¥99.802 million in impairment losses, ¥16.506 million in provision for losses on guarantees of liabilities, and ¥4.032 million in loss on lease cancellation. Investigation costs and costs related to corrections to prior-year financial statements and other matters are expected to total approximately ¥524 million and are scheduled to be recognized as extraordinary losses. |
| Accounting period in which recognized | The above extraordinary income and extraordinary losses were recognized in the second quarter of the fiscal year ending September 2026. Investigation costs and costs related to corrections to prior-year financial statements and other matters will be recognized from the third quarter of the fiscal year ending September 2026 onward. |
| Impact on Earnings Forecast | The impact on results of recognizing the above extraordinary losses was reflected in the financial results summary for the second quarter of the fiscal year ending September 2026 dated 14 August 2026. Investigation costs and other expenses are scheduled to be recognized from the third-quarter results onward. |
| Type of litigation or proceeding | Investigation by a third-party committee |
| Investigation structure | Investigation by a third-party committee. The chairperson's name and establishment date are Not disclosed. |
| Outlook | The Company plans to recognize investigation costs and costs related to corrections to prior-year financial statements and other matters as extraordinary losses from the third-quarter financial results for the fiscal year ending September 2026 onward. The costs are currently being compiled, and as of today, are expected to total approximately ¥524 million. |
Items this document does not state (13)
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.The extraordinary income primarily comprised compensation received in connection with the consolidation of floors at the Tokyo Branch and other items. The extraordinary losses resulted from declines in the profitability of fixed assets, guarantees of liabilities, lease cancellations and other matters. In addition, the Company plans to recognize investigation costs and costs related to corrections to prior-year financial statements following疑義 regarding inappropriate accounting practices in certain advertising transactions and the capitalization of software in prior years.