Notice of Impact of Inappropriate Accounting & Notice of Revised Consolidated Earnings Forecast for the FY Ended March 2017

Oh no Fuji! The company discovered some “inappropriate accounting” in New Zealand and Australia. Today they released that statement (PDF here)

“[…] in addition to Fuji Xerox New Zealand Limited (“FXNZ”), an overseas sales subsidiary of Fuji Xerox Co., Ltd. which is a consolidated subsidiary of FUJIFILM Holdings , Fuji Xerox Australia Pty. Limited, an Australian sales subsidiary of Fuji Xerox, also conducted inappropriate accounting similar to that conducted by FXNZ. As a result, the accumulated impact of the inappropriat e accounting regarding our consolidated subsidiaries on the “net income” on a consolidated basis of the Comp any for the past few years has become a loss of 37.5 billion yen from a loss of approximately 22 billion yen […]. Further, the accumulated impact on the “net income attributable to FUJIFILM Holdings” is a loss of 28.1 billion yen“

“Although sales in areas such as electronic imaging field of the optical device and electronic imaging business have increased, our sales and operating income has decreased due to a decrease in sales in the healthcare business and the document business.

At the same time, as a result of the review of the cross-shareholding, a gain on sales of investment securities has been recorded in non-operating income and expenses so there have been increases in income before income taxes, net income attributable to FUJIFILM Holdings, and net income attributable to FUJIFILM Holdings per share, which has resulted in a record high in the net income attributable to FUJIFILM Holdings.

Further, the impact on the amount in the consolidated earnings for the fiscal year ended March 2017 relating to the accounting problem at overseas sales subsidiaries of Fuji Xerox Co., Ltd. […] is minor.”

We don’t know yet if there will be any legal consequences of this “misbehaviour”.

via Fujirumors