Decision and Details
Recognition of a gain on extinguishment of shares in connection with the absorption-type merger of a subsidiary
Because, on the effective date of the merger, a difference arose between the amount of net assets received from the merged company and the carrying amount of its shares held by the Company.
The gain will be recorded as an extraordinary gain in the non-consolidated financial statements for the fiscal year ending March 2027. It will be eliminated in the consolidated financial statements and will therefore have no impact on the consolidated financial statements.
| Item | Details |
|---|---|
| Matter Covered | Recognition of a gain on extinguishment of shares in connection with the absorption-type merger of a subsidiary |
| Decision Date | 1 April 2026 (effective date of the merger and date of recognition) |
| Implementation Date | 1 April 2026 (effective date of the absorption-type merger; completed) |
| Period Covered | Fiscal year ending March 2027 non-consolidated financial statements |
| Amount | Gain on extinguishment of shares in connection with the merger: ¥56,156 thousand |
| Impact on Business Performance | The gain will be recorded as an extraordinary gain in the non-consolidated financial statements for the fiscal year ending March 2027. It will be eliminated in the consolidated financial statements and will therefore have no impact on the consolidated financial statements. |
| Reason | Because, on the effective date of the merger, a difference arose between the amount of net assets received from the merged company and the carrying amount of its shares held by the Company. |
| Related previous disclosures | “Notice Regarding Completion of the Absorption-Type Merger of Consolidated Subsidiary (GENOVA DESiGN Co., Ltd.)” dated 1 April 2026 |
| Future plans | The Company will record a gain on extinguishment of shares in connection with the merger of ¥56,156 thousand as an extraordinary gain in its non-consolidated financial statements for the fiscal year ending March 2027. |
Items this document does not state (3)
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 a difference arose between the amount of net assets received through the absorption-type merger and the carrying amount of the subsidiary's shares held by the Company.