Kimura Unity Co., Ltd.
Notice of Correction to Past Internal Control Reports and Disclosure Regarding Material Weaknesses in Internal Control over Financial Reporting
It was discovered that inadequate accounting treatment occurred due to changes in residual value ratios of vehicle lease transactions in past fiscal years, resulting in incorrect classification between finance leases and operating leases. The company reviewed the effectiveness of internal control and submitted a correction report. Corrective actions include revising checklists and strengthening operations. Impacts have been reflected in the consolidated financial statements. An unqualified audit opinion is maintained.
Key Figures
- Correction period: Fiscal Years 51 to 55 internal control reports
- Audit opinion: Unqualified Audit Opinion
- Corrective policy: Comprehensive revision of the accounting policy checklist and strengthening of operations
AI要約
Material Internal Control Deficiency and Correction
The Company found that its internal control over past reporting periods did not include controls to properly identify and assess changes in residual value ratios for vehicle lease transactions, and lacked procedures to re-evaluate the appropriateness of reflecting shifts in the composition between finance leases and operating leases in the financial statements. As a result, it was determined that contracts that should have been accounted for as finance leases were, in multiple fiscal years, incorrectly accounted for as operating leases, and a correction report has been filed.
Corrective Policies and Impact
The evaluation results for the internal control reports subject to correction have been amended as deficiencies, and the Company will implement a comprehensive revision of the accounting policy checklist and strengthen operational procedures based on information collection from business units. By reinforcing internal control over financial reporting, the Company aims to appropriately manage impacts on the financial statements. The effects have already been reflected in the consolidated financial statements and financial statements, and the auditor's report continues to be an unqualified opinion.
Kimura Unity Co., Ltd.
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