Press release
Feb 2, 2018

Sosei Announces Restatements of Previously Issued Quarterly and Full Year Accounts


Revenues and operating expenses are not impacted by restatements

Restatements limited to changes in previous tax charge estimates under IFRS

Q3 FY2017 results to be released on 14 February 2018

Tokyo, Japan and London, United Kingdom – 2 February 2018: Sosei Group Corporation (“Sosei” or the “Company”; TSE Mothers Index: 4565), the world leader in GPCR medicine design and development, today announced that it will be restating selected financial statements previously issued by the Company.

Revenues and operating expenses are not impacted by the restatements.

The following periods will be subject to adjustments related to estimated tax charges under IFRS and associated balance sheet values*. 
  • Q2 FY2016 (three-month period ended 30 September 2016)
  • Q3 FY2016 (three-month period ended 31 December 2016)
  • Q4 FY2016 / FY2016 (three- and 12-month periods ended 31 March 2017)
  • Q1 FY2017 (three-month period ended 30 June 2017)
  • Q2 FY2017 (three-month period ended 30 September 2017)


During 2017, the Company appointed new tax advisors and conducted a comprehensive global tax review. The outcome of the review indicated that tax advice previously received by the Company was inconsistent with the current global tax environment and, accordingly, the Company may have filed two erroneous tax returns in Japan, related to an additional Japanese tax liability arising from its UK operations. The Company has taken immediate and voluntary action to amend the previously filed tax returns, and to make all necessary disclosures to the relevant tax authorities.

The Company has assessed the total tax expense increase on FY2016 reported earnings (Q2, Q3 and Q4 FY2016) to be less than JPY 500 million (before potential penalties which are capped†), and will restate these accounts to reflect these changes. In addition, Q1 and Q2 FY2017 tax expenses will see modest increases (estimated to be less than JPY 200 million combined) which will be reflected in restated accounts. It is important to note that revenues and operating expenses are not impacted by the restatements in any way.

The Company will release its Q3 FY2017 results (three-month period ended 31 December 2017), together with all the restated accounts on 14 February 2018.

 

* The only items that are impacted are the tax expense/benefit line in the Statement of Comprehensive Income, and the associated deferred tax asset/liability and tax creditor values in the Statement of Financial Position.
† Potential penalties only apply to FY2016 and are capped at a maximum amount of JPY 150 million. Management expect any potential penalty amount to be less than this given the Company self-reported the issue immediately and voluntarily to the relevant tax authorities.

 


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