Nidec Announces Material Weakness About Nidec’s Internal Control Over Its Financial Reporting
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Details of the material weakness |
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It became clear that, at Nidec Drive Technology, a consolidated subsidiary of the Company, the wrong data was identified for part of the adjustment, such as sales accompanied by transactions between consolidated subsidiaries of the Company’s business group in its consolidated account closing procedure, resulting in sales recorded in an inflated manner. As it became necessary to cancel the sales amount recorded in an inflated manner, the Company came to the conclusion that it should correct the financial results of the fiscal year ended |
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Reasons as to why corrections could not be made by the end of the consolidated fiscal year |
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Corrections could not be made by the end of the consolidated fiscal year because the aforementioned fact became evident after the final day of the consolidated fiscal year ended |
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Correction policy for the material weakness |
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The Company sufficiently understands the importance of internal control over financial reporting. Therefore, to correct the material weakness, the |
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Thoroughly review consolidated closing entries included in documents disclosed in past fiscal years and in corrected consolidated financial statements, to identify other related issues, and to better process and present accounts; |
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Update the Company’s policy on its consolidated account closing procedure, enhance the system to understand the proper and comprehensive information when identifying adjustment-requiring cases that are related to transactions between consolidated subsidiaries, and hold lectures focused on the verification of consolidated book closing and on the approval process by those with approval authority; and |
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Enhance the comprehensive monitoring function of the Company’s and its subsidiaries’ accounting and financial managers over the consolidated account closing procedure, and enhance the reviewing and approval procedures on the coordination of transactions between consolidated subsidiaries in account closing and financial reporting processes. |
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Impact of the material weakness on the Company’s consolidated financial statements |
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All the necessary corrections attributed to the aforementioned material weakness are reflected in the Company’s consolidated financial statements. |
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Audit opinions in the consolidated financial statements’ audit report |
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They are unqualified opinions. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240524599508/en/
General Manager
Investor Relations
+81-75-935-6140
ir@nidec.com
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