COLOPL Inc., the Tokyo-based mobile game developer, has revised its financial statements after discovering accounting errors that led to revenue overstatements and cost miscalculations across multiple reporting periods.
The gaming company found it had overstated sales by ¥119 million ($793,000) for the fiscal year ended September 2023 and by ¥11 million ($73,300) in the second quarter of fiscal 2024. The errors stemmed from incorrect calculations of equity stakes in group investment funds.
A separate accounting mistake at a subsidiary related to revenue recognition standards resulted in an understatement of cost of sales by ¥90 million ($600,000) for fiscal 2023.
Following the corrections, COLOPL’s net profit for fiscal 2023 was reduced to ¥1.75 billion ($11.7 million) from the previously reported ¥1.89 billion. The revisions also affected the company’s quarterly results through fiscal 2024, with the most recent third-quarter showing an adjusted net loss of ¥435 million, improved from the initially reported ¥491 million loss.
The accounting adjustments come as Japanese regulators increase scrutiny of financial reporting practices among public companies. COLOPL’s stock trades on the Tokyo Stock Exchange.
