Primary contents from here.
September 11,2017
The Company announced the recording of extraordinary losses and extraordinary income during the consolidated second quarter of the fiscal year ending March 31, 2018 (July 1-September 30, 2017), as outlined below.
1. Recording of extraordinary losses
Company subsidiary Okasan Information Systems Co., Ltd., plans to record impairment losses of JPY4.8 billion on its net trading system, based on the Accounting Standard for Impairment of Fixed Assets. Developed for use by Group member companies and others in the industry, this system began operating in May 2017. However, based on revised plans for how the system will be used, the Company has chosen to make a conservative estimate of the amount recoverable until actual use of the system begins. This decision resulted in a decrease in the amount of the system’s book value.
The Company plans to record losses in the same amount in its consolidated settlement of accounts.
Overview of Okasan Information Systems Co., Ltd.
| Name | Okasan Information Systems Co., Ltd. |
| Address | 1-22-16 Asakusabashi, Taito-ku, Tokyo |
| Representative Director | Makoto Egoshi |
| Lines of business | Information-processing services |
| Capital | JPY470 million (a wholly owned subsidiary of Okasan Securities Group Inc.) |
2. Recording of extraordinary income
The Company plans to record as extraordinary income gains on the sale of investment securities accompanying the sale of certain holdings in investment securities.
- Reason for sale of investment securities
To improve asset efficiency and enhance the financial structure - Details of the sale of investment securities
- Period of sale: August-September 2017
- Gains on sale of investment securities: approx. JPY3 billion (projected)
3. Future outlook
During the consolidated second quarter of the fiscal year ending March 31, 2018, the Company plans to record JPY4.8 billion in impairment losses as extraordinary losses. The Company also plans to record approximately JPY3 billion in gains on the sale of investment securities as extraordinary income.
The main business of the Group is trade in financial instruments. As such, fluctuating market conditions can impact business performance. Due to the nature of this industry and the attendant difficulty of forecasting business performance, the Company does not disclose forecasts of business performance.