A third-party committee announced that improper accounting had been carried out from around 2018 at Advance Create, a Prime Market-listed insurance agency, by recognizing advertising fees earlier than the proper revenue recognition period. The committee also pointed to evidence that insurance companies placing the advertisements had helped conceal the misconduct, with strong pressure from the founder said to have been behind it.
Questions arose over the accounting for advertising revenue at Advance Create, a Prime Market-listed insurance agency, and the insurance market operated by its subsidiary, prompting the establishment of a third-party committee to investigate. The report detailed how company officials had engaged in falsification to conceal the improper accounting.
At the heart of the improper accounting was a method of recognizing advertising fees as revenue in a lump sum before the advertising had been completed, despite the understanding that the fees should ordinarily have been allocated and recognized monthly.
The background allegedly included strong performance pressure from founder and President Hamada Yoshiharu (濱田 佳治氏), who is said to have made remarks such as, “I’ll beat you to a pulp” and “I might kill you.” The third-party committee published its investigation report on 4 August.
The report also stated that parties involved and the insurance companies that placed the advertisements had helped conceal the misconduct. Further reports on related matters may attract attention going forward.