Recognition of an extraordinary loss
Advance Create Co.,Ltd. and its wholly owned subsidiary 株式会社保険市場
The advertising agency business, some advertising transactions in prior fiscal years, and the capitalization of software costs
Suspected improper accounting treatments in some advertising transactions in prior fiscal years and the capitalization of software costs. In addition, the decline in the profitability of fixed assets, debt guarantees, and the termination of rental and lease agreements
Special investigation expenses: ¥449.743 million; expenses related to corrections of prior fiscal years: ¥128.549 million; impairment losses: ¥240.755 million; provision for losses on debt guarantees: ¥26.264 million; loss on termination of rental agreements: ¥22.167 million; loss on termination of leases: ¥4.032 million (total of breakdown: ¥871.510 million). All were extraordinary losses
Fiscal year ending September 2026 (1 October 2025 to 30 September 2026)
The impact on results was reflected in the 13 November 2026 "Consolidated Financial Results for the Fiscal Year Ended September 2026 (Japanese GAAP)"
Related procedures
Investigation by a third-party committee and correction of prior-year financial results
Company response
Investigation by a third-party committee. The name of the chair and the date of establishment were Not disclosed
| Item | Details |
|---|---|
| Event name | Recognition of an extraordinary loss |
| Date recognized / date notice received | A disclosure dated 18 September 2026 stated that suspicions of improper accounting treatments had come to light. |
| Subject Entity | Advance Create Co.,Ltd. and its wholly owned subsidiary 株式会社保険市場 |
| Target Locations / Products | The advertising agency business, some advertising transactions in prior fiscal years, and the capitalization of software costs |
| Cause | Suspected improper accounting treatments in some advertising transactions in prior fiscal years and the capitalization of software costs. In addition, the decline in the profitability of fixed assets, debt guarantees, and the termination of rental and lease agreements |
| Amount of Impact on Business Performance | Special investigation expenses: ¥449.743 million; expenses related to corrections of prior fiscal years: ¥128.549 million; impairment losses: ¥240.755 million; provision for losses on debt guarantees: ¥26.264 million; loss on termination of rental agreements: ¥22.167 million; loss on termination of leases: ¥4.032 million (total of breakdown: ¥871.510 million). All were extraordinary losses |
| Accounting period in which recognized | Fiscal year ending September 2026 (1 October 2025 to 30 September 2026) |
| Impact on Earnings Forecast | The impact on results was reflected in the 13 November 2026 "Consolidated Financial Results for the Fiscal Year Ended September 2026 (Japanese GAAP)" |
| Type of litigation or proceeding | Investigation by a third-party committee and correction of prior-year financial results |
| Investigation structure | Investigation by a third-party committee. The name of the chair and the date of establishment were Not disclosed |
Items this document does not state (15)
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.Because suspicions of improper accounting treatments came to light in some advertising transactions and the capitalization of software costs in prior fiscal years, an investigation by a third-party committee was conducted and prior-year financial results were corrected. In addition, there was a decline in the profitability of fixed assets and the termination of debt guarantees, lease agreements and rental agreements.