Fujifilm uncovers accounting discrepancies at Australian unit


Fujifilm Holdings Corp. said Monday an independent panel investigating accounting for its overseas operations found irregularities at an Australian subsidiary in addition to those already found at a New Zealand unit.

The maker of camera equipment, cosmetics and medical supplies said losses from incorrect treatment of leasing operations in the past now total ¥37.5 billion. This includes the ¥22 billion at the New Zealand subsidiary.

Fujifilm in April postponed the release of its earnings reports for the business year ended in March and set up the third-party panel to investigate the lease transactions by Fuji Xerox New Zealand Ltd. in the business year to March 2016 and earlier.

The results of the accounting probe received Saturday showed that its Australian unit, Fuji Xerox Australia Ltd., also booked some leasing transactions inappropriately.

Fujifilm, which was scheduled to report its latest business results later on Monday, released a revised earnings estimate for the period, saying the financial impact of the accounting irregularities at the two subsidiaries would be limited. Profits from selling part of its shareholdings have more than offset the loss from the accounting problems, the company said.

Fujifilm is expecting a group net profit of ¥131.51 billion, compared with its earlier estimate of ¥112 billion, due largely to weaker sales of health care products and copiers.

Fujifilm said in April a whistleblower reported in July 2015 that there were improper contracts in a lease business inside Fujifilm. Although the unit had once judged them appropriate after conducting an internal check, an auditor pointed out the accounting problem later.

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