Nidec examined the impact of the accounting fraud and now expects losses, including impairment losses, to exceed ¥1 trillion after cumulative overstatements reached ¥208 billion. New President Kaida Masao (戒田 理夫), who took office in September, held a press conference at the Kyoto headquarters.
Nidec conducted an investigation into the series of accounting fraud incidents and disclosed that it expects to record ¥208 billion in overstatements to date. Derivative impairment losses swelled to ¥288 billion, and together with the approximately ¥630 billion impairment loss recorded for the fiscal year ended March 2026, total losses are expected to exceed ¥1 trillion.
Kaida Masao (戒田 理夫), who became president on 29 September, held a press conference at headquarters on the 1st to explain the situation. Kubota Masataka (久保田 正崇), PwC Japan’s representative executive officer, was also present, and it was noted that PwC had not expressed an audit opinion on the annual securities report for the fiscal year ended March 2026. The continued involvement in financial reporting of some officers and employees connected with the accounting fraud was also viewed as a problem.
Nidec has been designated by the Japan Exchange Group as a security under special caution, a designation that could lead to delisting. Going forward, it must obtain an unqualified audit opinion by the end of October and submit an amended annual securities report. Kaida (戒田 理夫) indicated his intention to address the remaining issues, while PwC also indicated that it aimed to submit its final audit opinion.