Recording of a loss on investment securities as a non-operating expense
Reporting company (Area Quest Inc.)
Investment securities held by the Company
The fair value of investment securities held by the Company declined below their acquisition cost as of the end of March 2026.
¥65 million (non-operating expense, loss on investment securities; total for the cumulative third quarter of the fiscal year ending June 2026)
Consolidated accounting period for the third quarter of the fiscal year ending June 2026 (1 January 2026 to 31 March 2026). The cumulative period is 1 July 2025 to 31 March 2026.
No revisions have been made to the full-year consolidated earnings forecast or dividend forecast announced on 2 March 2026. However, if the Company determines that revisions are necessary, including due to other factors, it will promptly make a disclosure.
The reversal method is used to value securities on a quarterly basis. Depending on the share price at the end of the fiscal year ending June 2026, the amount of the loss on investment securities recorded this time may change, or no loss may ultimately be recorded. At this time, no revisions have been made to the full-year consolidated earnings forecast or dividend forecast. If the Company determines that revisions are necessary, it will promptly make a disclosure.
If the Company determines that revisions are necessary, including due to other factors, it will promptly make a disclosure.
| Item | Details |
|---|---|
| Event name | Recording of a loss on investment securities as a non-operating expense |
| Date of occurrence | 31 March 2026 (the fair value was below the acquisition cost as of the end of March 2026; the loss was recorded during the consolidated accounting period for the third quarter of the fiscal year ending June 2026) |
| Subject Entity | Reporting company (Area Quest Inc.) |
| Target Locations / Products | Investment securities held by the Company |
| Cause | The fair value of investment securities held by the Company declined below their acquisition cost as of the end of March 2026. |
| Amount of Impact on Business Performance | ¥65 million (non-operating expense, loss on investment securities; total for the cumulative third quarter of the fiscal year ending June 2026) |
| Accounting period in which recognized | Consolidated accounting period for the third quarter of the fiscal year ending June 2026 (1 January 2026 to 31 March 2026). The cumulative period is 1 July 2025 to 31 March 2026. |
| Impact on Earnings Forecast | No revisions have been made to the full-year consolidated earnings forecast or dividend forecast announced on 2 March 2026. However, if the Company determines that revisions are necessary, including due to other factors, it will promptly make a disclosure. |
| Outlook | The reversal method is used to value securities on a quarterly basis. Depending on the share price at the end of the fiscal year ending June 2026, the amount of the loss on investment securities recorded this time may change, or no loss may ultimately be recorded. At this time, no revisions have been made to the full-year consolidated earnings forecast or dividend forecast. If the Company determines that revisions are necessary, it will promptly make a disclosure. |
| Planned follow-up disclosure | If the Company determines that revisions are necessary, including due to other factors, it will promptly make a disclosure. |
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.The fair value of investment securities held by the Company declined below their acquisition cost as of the end of March 2026.