Sharp discovers probable “improper accounting”
January 4, 2021
The company published a notice to advise of improper accounting treatment at its consolidated subsidiary and announced the establishment of an investigation committee.
Sharp Corporation said it discovered that a possible improper accounting treatment occurred at its consolidated subsidiary, Kantatsu Co. Ltd. Sharp announced its decision at the Board of Directors meeting held 25 December 2020, to establish an investigation committee and investigate Kantatsu.
Sharp expressed its sincere apologies to all shareholders, investors, and stakeholders for any inconvenience or concern that this matter may cause.
- Summary of Improper Accounting Treatment
In November 2020, an internal audit of Kantatsu by Sharp’s internal audit department revealed that Kantatsu had recorded sales for which there were no purchase orders or product shipments involved (including recording the corresponding costs and accounts receivable. The same applies below).
In addition, through further investigation, Sharp recognized that several improper accounting treatments existed, such as the recording of sales without product shipments with respect to long overdue accounts receivable from the previous fiscal year (ended 31 March 2020).
The expected impact to consolidated net sales at this point ranges less than ¥10 billion ($97 million/ €79 million).
- Investigation by Investigation Committee
After further internal investigation, Sharp concluded that a thorough and comprehensive
investigation of the facts and the improper accounting treatment is necessary. Therefore, at its meeting of the Board of Directors, Sharp decided to establish an investigation committee today that includes lawyers and accountants and to conduct an investigation of Kantatsu.
- Future Actions
Immediately following the completion of the investigation, Sharp will announce the results of the investigation, the impact on business results, and other issues that should be disclosed.
Categories : City News
Tags : Accounting Investigation Sharp
