Nippon Ichi Software: Status of Membership in the Financial Accounting Standards Foundation

Nippon Ichi Software maintains a policy of non-membership in the Financial Accounting Standards Foundation as of March 31, 2026. This disclosure is provided in accordance with Article 409-2 of the Tokyo Stock Exchange listing regulations, which requires listed companies to clarify their status and strategic rationale regarding participation in the organization responsible for establishing accounting standards in Japan.

Despite the lack of formal membership, the company emphasizes its commitment to maintaining high standards of financial reporting and regulatory compliance. To ensure the accurate interpretation of evolving accounting standards, the company actively monitors regulatory changes through direct collaboration with external certified public accountants and audit firms. Furthermore, the organization invests in professional development by participating in specialized industry seminars and utilizing technical accounting literature to stay informed on emerging financial reporting requirements.

The decision to remain outside the Financial Accounting Standards Foundation is based on a strategic assessment of the company’s current business scale and operational environment. While the company has opted against membership at this time, it remains committed to evaluating the necessity of joining the foundation in the future, contingent upon shifts in its corporate structure or the broader regulatory landscape. This approach ensures that the company balances its administrative resources with the ongoing requirement for transparent and accurate financial disclosures.