Delay in settlement of accounts “Check rules and respond flexibly” FSA April 16 4:46
Some companies have been delaying the accounting process due to the spread of the new coronavirus infection. The Financial Services Agency and others are calling for flexible responses by delaying the holding of the general shareholders meeting that approves the settlement of accounts or by approving the settlement of accounts at another meeting.
Companies with financial results for the fiscal year ending March will concentrate their accounting work and audits during this period.
However, due to the spread of the new coronavirus infection, the number of working from home is increasing, and due to the severe restrictions on going out, the accounting staff of the local subsidiary are unable to come to work and the work is delayed, and according to the Tokyo Stock Exchange, there are more than 80 companies. Has delayed the initial financial results announcement.
For this reason, the council formed by the Financial Services Agency, the Ministry of Justice, and Keidanren calls on companies to confirm the rules approved by the Companies Act and respond flexibly.
For example, the settlement of accounts needs to be approved by the general meeting of shareholders, but if there is a legitimate reason such as being unable to work due to the spread of infection, the holding of the general meeting can be postponed. After that, we will hold another meeting called "Continuation meeting" to get approval for settlement of accounts.
In most cases, companies that settle the fiscal year ending in March hold a general meeting of shareholders within June.
However, because it is impossible to predict how long the effect of the spread of infection will continue, the Financial Services Agency and others are not sticking to the original schedule, and demand that the financial statements and audits take sufficient time to respond.