Nidek Faces Accounting Concerns, Delays Report, and Withdraws Forecast
TOKYO, Oct 23 – Nidek Co. Ltd. is taking steps to overhaul its internal control systems following concerns over inappropriate accounting practices, the company confirmed Wednesday. The move comes as the optical equipment manufacturer navigates a delayed annual securities report, an ongoing third-party investigation, and the withdrawal of its earnings forecast.
The situation, described as “certainly a rare case,” centers on suspicions of improper accounting treatment and the timing of asset write-downs at Nidek and its group companies, with the alleged involvement of management. A third-party committee was established on September 3 to investigate these claims, but a timeline for its findings remains unclear. Despite the uncertainty, a company representative stated, “I don’t think it’s the right decision to delay the designation as a custom brand by waiting unnecessarily.” The deadline for Nidek’s annual securities report for the fiscal year ending March 2025 was extended to September 26 due to issues at its Italian subsidiary, and a report submitted on that date received a “no opinion” from the auditing firm. Nidek subsequently withdrew its earnings forecast for the fiscal year ending March 2016 on September 3.
