Fraud Response and Prior Period Restatements
Prior period Restatement Support

Supporting rapid response to retrospective prior-year corrections

Since the publication of the Accounting Standard for Accounting Policy Disclosures, Accounting Changes and Error Corrections (Accounting Standards Board of Japan [ASBJ] Statement No.24) and its Implementation Guidance (ASBJ Guidance No. 24), when there are changes in accounting policies or presentation methods, or corrections of prior‑period errors, entities are required to revise accounting treatments or presentation as if the new accounting policies or presentation methods had been applied retrospectively to past financial statements (hereinafter, “retrospective prior-year corrections”). In particular, when errors or fraud from past periods are discovered and retrospective corrections of prior‑year financial statements becomes necessary, the greatest challenge in the entire process is time. To maintain listed status, it is an essential condition to execute high‑volume tasks—such as investigation response, corrections of financial statements, and audit response—effectively within a short timeframe and to submit all required disclosure documents (including amended securities reports) by the deadline.

Moreover, in retrospective prior-year corrections, it is common for multiple parties (including accounting personnel, corporate managers, audit firms, regulatory authorities, and investigative committees) to conduct their respective deliberations simultaneously. Timely and appropriate information sharing with all relevant stakeholders, as well as swift and coordinated collaboration, is indispensable. We have accumulated extensive experience since the initial application of these standards, enabling us to provide effective and efficient support for any case involving retrospective prior-year corrections.

Main process

Schedule example

Case where an error (or fraud) in prior-year financial results is discovered during the interim closing