April 13, 2012
Securities and Exchange Surveillance Commission
Pursuant to Article 20, Paragraph 1 of the Act for Establishment of the Financial Services Agency, the Securities and Exchange Surveillance Commission today issued a recommendation that the Prime Minister and the Commissioner of the Financial Services Agency impose administrative monetary penalties against Olympus Corporation (the “Company”). This recommendation is based on the findings of an inspection, whereby the following false statements in violation of the laws were identified in the annual securities reports, etc. of the Company.
The Company submitted to the Director-General of the Kanto Local Finance Bureau its annual securities reports and other reports “containing false statements on important matters” by overstating its consolidated net assets, as stipulated in Article 172-2, Paragraphs 1 and 2 of the Financial Instruments and Exchange Act (the “FIEA”) in effect prior to the amendment in 2008 and Article 172-4, Paragraphs 1 and 2 of the FIEA currently in effect, as described in the table below.
| No. | Disclosure Document | False statement | ||||
|---|---|---|---|---|---|---|
| Submission date | Document | Accounting period | Statement on Finance and Accounting | Content | Accounting item | |
| 1 | June 28, 2007 | Annual securities report for the 139th business year | Consolidated accounting period from April 1, 2006 to March 31, 2007 |
Consolidated balance sheet | Consolidated net assets were found to be 224,951 million yen, but stated as 344,871 million yen. | ·Overstating investment securities ·Understating long-term loan payable |
| 2 | December 14, 2007 | Semiannual report for the 140th business year | Interim consolidated accounting period from April 1, 2007 to September 30, 2007 | Interim consolidated balance sheet | Consolidated net assets were found to be 248,965 million yen, but stated as 372,473 million yen. | ·Overstating investment securities ·Understating long-term loan payable |
| 3 | June 27, 2008 | Annual securities report for the 140th business year | Consolidated accounting period from April 1, 2007 to March 31, 2008 |
Consolidated balance sheet | Consolidated net assets were found to be 242,877 million yen, but stated as 367,876 million yen. | ·Overstating investment securities ·Overstating goodwill |
| 4 | August 14, 2008 | 1st quarterly report for the 141th business year | 1st quarter consolidated accounting period from April 1, 2008 to June 30, 2008 | Quarterly consolidated balance sheet | Consolidated net assets were found to be 240,628 million yen, but stated as 366,948 million yen. | ·Overstating investment securities ·Overstating goodwill |
| 5 | November 14, 2008 | 2nd quarterly report for the 141th business year | 2nd quarter consolidated accounting period from July 1, 2008 to September 30, 2008 | Quarterly consolidated balance sheet | Consolidated net assets were found to be 211,897 million yen, but stated as 343,910 million yen. | ·Overstating investment securities ·Overstating goodwill |
| 6 | February 13, 2009 | 3rd quarterly report for the 141th business year | 3rd quarter consolidated accounting period from October 1, 2008 to December 31, 2008 | Quarterly consolidated balance sheet | Consolidated net assets were found to be 110,428 million yen, but stated as 241,281 million yen. | ·Overstating investment securities ·Overstating goodwill |
| 7 | June 26, 2009 | Annual securities report for the 141th business year | Consolidated accounting period from April 1, 2008 to March 31, 2009 |
Consolidated balance sheet | Consolidated net assets were found to be 110,594 million yen, but stated as 168,784 million yen. | ·Overstating investment securities ·Overstating goodwill |
| 8 | August 14, 2009 | 1st quarterly report for the 142th business year | 1st quarter consolidated accounting period from April 1, 2009 to June 30, 2009 | Quarterly consolidated balance sheet | Consolidated net assets were found to be 127,124 million yen, but stated as 185,941 million yen. | ·Overstating investment securities ·Overstating goodwill |
| 9 | November 13, 2009 | 2nd quarterly report for the 142th business year | 2nd quarter consolidated accounting period from July 1, 2009 to September 30, 2009 | Quarterly consolidated balance sheet | Consolidated net assets were found to be 146,821 million yen, but stated as 204,298 million yen. | ·Overstating investment securities ·Overstating goodwill |
| 10 | February 15, 2010 | 3rd quarterly report for the 142th business year | 3rd quarter consolidated accounting period from October 1, 2009 to December 31, 2009 | Quarterly consolidated balance sheet | Consolidated net assets were found to be 158,251 million yen, but stated as 214,952 million yen. | ·Overstating investment securities ·Overstating goodwill |
| 11 | June 29, 2010 | Annual securities report for the 142th business year | Consolidated accounting period from April 1, 2009 to March 31, 2010 |
Consolidated balance sheet | Consolidated net assets were found to be 163,142 million yen, but stated as 216,891 million yen. | ·Overstating investment securities ·Overstating goodwill |
| 12 | August 13, 2010 | 1st quarterly report for the 143th business year | 1st quarter consolidated accounting period from April 1, 2010 to June 30, 2010 | Quarterly consolidated balance sheet | Consolidated net assets were found to be 132,408 million yen, but stated as 185,922 million yen. | ·Overstating investment securities ·Overstating goodwill |
| 13 | November 12, 2010 | 2nd quarterly report for the 143th business year | 2nd quarter consolidated accounting period from July 1, 2010 to September 30, 2010 | Quarterly consolidated balance sheet | Consolidated net assets were found to be 128,255 million yen, but stated as 180,482 million yen. | ·Overstating investment securities ·Overstating goodwill |
| 14 | February 14, 2011 | 3rd quarterly report for the 143th business year | 3rd quarter consolidated accounting period from October 1, 2010 to December 31, 2010 | Quarterly consolidated balance sheet | Consolidated net assets were found to be 109,488 million yen, but stated as 160,173 million yen. | ·Overstating investment securities ·Overstating goodwill |
| 15 | June 29, 2011 | Annual securities report for the 143th business year | Consolidated accounting period from April 1, 2010 to March 31, 2011 |
Consolidated balance sheet | Consolidated net assets were found to be 115,589 million yen, but stated as 166,836 million yen. | Overstating goodwill |
| 16 | August 11, 2011 | 1st quarterly report for the 144th business year | 1st quarter consolidated accounting period from April 1, 2011 to June 30, 2011 | Quarterly consolidated balance sheet | Consolidated net assets were found to be 101,751 million yen, but stated as 151,147 million yen. | Overstating goodwill |
It should be noted that:
(i) respective amendments for these annual securities reports, etc. listed above have been submitted by the Company; and
(ii) none of such amendments is subject to this recommendation to impose administrative monetary penalties.
The total amount of the administrative monetary penalties to be imposed on the Company in accordance with the FIEA will be 191,819,994 yen.
*This is an unofficial summary translation of the original Japanese press release and is provided just for your reference.