TOKYO, Mar 31 (Pulse News Wire) – KDDI Corporation (9433.T) disclosed today that its internal control report for fiscal years ending March 31, 2023 through March 31, 2025, contained significant deficiencies affecting financial reporting. The company submitted corrected reports to the Kanto Finance Bureau based on findings from a special investigation committee.
The issues stemmed from improper transactions involving advertising agency operations within subsidiary Biglobe Inc. and its subsidiary G-Plan Co., Ltd. An external audit revealed phantom circular transactions without underlying economic substance. As a result, KDDI canceled related revenue and cost entries and revised financial statements dating back to the fiscal year ended March 31, 2023.
KDDI identified weaknesses in authority segregation and risk management processes within the affected subsidiaries. The company plans to strengthen controls across its group, enhance procurement functions, and reinforce ethical standards to prevent recurrence. The corrections impacted consolidated financial statements and quarterly reports from fiscal 2023 to 2025. Unqualified opinions remain on audited financials for the affected accounting periods.
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