---
title: "Nidec’s financial corrections: why the large numbers differ"
language: en
canonical: https://dossiertwist.com/dossiers/nidec/financial-restatement/
as_of: 2026-10-06
keywords: ["Nidec","accounting","corporate governance","audit","quality","subsidiaries"]
---

# Nidec’s financial corrections: why the large numbers differ

**Question.** How should the correction and loss figures be compared?

**Answer.** The committee’s net and gross calculations, later company corrections, and parent-only accounts measure different things.

## The committee’s two measures

- Analysis: The provisional February estimate was superseded in April: the final supplement put the cumulative negative net-asset effect at ¥160.7 billion through the first quarter of FY2025. It combined intentional misconduct and errors where separating them reliably was difficult, and excluded specified derivative tax, goodwill and impairment effects. This is the relevant scope of that number. [s-d11] [s-d18]
- Documented: The April committee supplement estimated a cumulative negative impact of ¥160.7 billion on group net assets at the end of the first quarter of FY2025, replacing the February provisional ¥139.7 billion figure. It also presented ¥449.8 billion of gross net-profit effects as a separate reference measure. [s-d11] [s-d18]
  - Qualification: The cumulative figure combines misconduct and errors, and excludes specified derivative tax, goodwill and impairment effects. The gross measure follows separate assumptions, does not net reversals in the same way and is not an official accounting metric; it must not be added to the cumulative figure as another loss.
- Analysis: The ¥449.8 billion gross figure is a different reference calculation, assembled from correcting entries under explicit assumptions. Reversals and repeated effects across years are handled differently. It is not an official accounting measure, and adding it to the net figure as another loss would count overlapping consequences. [s-d11] [s-d18]

## The later annual filing

- Analysis: The September filing reports a wider ¥482.457 billion cumulative net-asset reduction measured at the second quarter of FY2025. For March 2025 comparatives, operating profit falls from ¥237.837 billion to ¥128.222 billion, while owner-attributable profit falls from ¥164.159 billion to ¥84.672 billion. The opening retained-earnings adjustment concerns earlier periods and overlaps with the later balance-sheet effects. [s-d10]
- Documented: Nidec’s September annual filing reports a wider cumulative reduction of ¥482.457 billion in net assets as of the second quarter of FY2025. Its restated March 2025 comparative figures reduce operating profit from ¥237.837 billion to ¥128.222 billion, owner-attributable profit from ¥164.159 billion to ¥84.672 billion, and owner-attributable equity from ¥1,716.947 billion to ¥1,239.815 billion. [s-d10]
  - Qualification: The September calculation includes further work and a later reference period than the April committee figure. The same filing records a ¥356.433 billion reduction of opening retained earnings for earlier periods. These measures overlap and must not be summed. The comparison uses the before-and-after figures in this filing, not unreconciled numbers from an older report.
- Analysis: The scale of the subsequent loss is also substantial: for the year ended March 2026 the group reports ¥2,708.705 billion revenue and a ¥564.624 billion owner-attributable loss. The parent-only ¥18.976 billion of net assets is not the equity of the whole consolidated group, whose reported owner-attributable equity is ¥794.164 billion. The reporting perimeter must remain attached to each figure. [s-d10] [s-d4]
- Documented: For the year ended 31 March 2026, the annual filing reports consolidated revenue of ¥2,708.705 billion, an owner-attributable loss of ¥564.624 billion, assets of ¥3,107.621 billion and owner-attributable equity of ¥794.164 billion. Separately, the parent-only table reports revenue of ¥273.452 billion, a net loss of ¥167.003 billion, net assets of ¥18.976 billion and an equity ratio of 1.0%. [s-d10] [s-d4]
  - Qualification: Consolidated figures follow IFRS; parent-only figures are a different reporting perimeter. They are reported amounts accompanied by an audit disclaimer, not unqualified audited results. Parent-only net assets must not be presented as the equity of the whole group.

## What remains uncertain

- Analysis: Impairment is roughly ¥632.2 billion in the retained texts, which differ slightly in their precise totals. PwC’s problem was more consequential than that small textual difference: it lacked sufficient evidence for some amounts and their allocation between periods, including whether restated forecasts improperly used hindsight. The dossier preserves that uncertainty rather than treating the latest estimates as definitively audited. [s-d10] [s-d4]
- Documented: The company’s operating-results discussion reports ¥632.135 billion of non-financial-asset impairment, while the accompanying auditor text refers to ¥632.221 billion. The auditor said it lacked sufficient evidence about the amount and timing of impairment for certain cash-generating units and whether prior-period estimates used information available at the relevant time. [s-d10] [s-d4]
  - Qualification: The retained texts differ slightly in the stated total; this dossier does not invent a reconciliation. Both place impairment at roughly ¥632.2 billion. The audit objection includes the risk of hindsight in restating prior estimates, not just a disagreement over one amount.
- Documented: The 30 September 2026 announcement reports disclaimers on annual consolidated and parent-only accounts and the internal-control report, together with no review conclusion on the third-quarter results. PwC said evidence about completeness of corrections, management override, impairment and comparative information was insufficient and potentially pervasive. [s-d4]
  - Qualification: A disclaimer means the auditor could not obtain the basis to express an opinion. It is neither approval of the accounts nor an affirmative finding that every reported figure is wrong. The English release’s second subsection heading is inconsistent with its quarterly-review body; the opening announcement distinguishes the scopes.
  - Response: Nidec said it took the events seriously, would take appropriate action and apologised to shareholders and other stakeholders.
  - Outcome: The auditor said some people involved in the identified accounting problems or false explanations still held financial-reporting responsibilities and personnel remediation was incomplete. The company could not express its own internal-control assessment result as of March 2026.
- Analysis: The company also disclosed that specified historical dividends and buybacks exceeded the distributable amount after the accounting corrections. It warned that regulatory investigation or a monetary penalty might follow, without announcing that such a penalty had already been imposed. Those consequences require their own dates and legal process. [s-d10]
- Documented: Nidec said its accounting corrections showed that specified buybacks or dividends in each fiscal year ended March 2022 through March 2026 exceeded the distributable amount calculated under Japanese company law. It also said regulatory investigation or an administrative monetary penalty was possible but could not then be reasonably estimated. [s-d10]
  - Qualification: This is the company’s disclosure of the consequences of its corrected accounts. A possible regulatory penalty is not an imposed penalty, and individual civil liability requires its own proceeding and outcome.

## The year-end comparison and financing position

- Analysis: Nidec’s September results presentation puts the reduction in consolidated net assets at 31 March 2025 at ¥476.9 billion: approximately ¥208.0 billion of accounting corrections and ¥288.0 billion of secondary impairment effects. This March year-end comparison is not the committee’s ¥160.7 billion first-quarter estimate or the later ¥482.457 billion second-quarter comparison in the annual filing. Different dates and the inclusion of secondary effects prevent those totals from being added together. [s-d28]
- Analysis: The separate parent-company accounts restate March 2025 net assets from ¥339.045 billion to ¥202.984 billion and that year’s net profit from ¥55.171 billion to ¥48.888 billion. An additional ¥129.778 billion cumulative correction is recorded against opening retained earnings for periods before the comparative year. These parent-only Japanese-GAAP figures are distinct from consolidated IFRS measures. The opening retained-earnings adjustment is part of the restatement mechanics, not another loss to add to the ending net-asset reduction. [s-d10]
- Analysis: At 31 March 2026 the consolidated annual filing reports ¥852.204 billion of cash and cash equivalents, ¥587.026 billion of short-term borrowings, ¥95.106 billion of long-term debt due within one year and ¥431.272 billion of long-term debt. Short-term borrowings rose by ¥493.316 billion during the year. Cash is a balance, not proof that the accounting losses were reversed. About 48% was held outside Japan; the company describes some cross-border remittance restrictions but says they had no material effect on liquidity, financial position or results. These reported figures remain subject to the audit disclaimer. [s-d10]

## Sources

- [s-d11] Research source · s-d11
- [s-d18] Research source · s-d18
- [s-d10] Company statement source · s-d10
- [s-d4] Company statement source · s-d4
- [s-d28] Company statement source · s-d28