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.
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.