Rakuten Group, Inc. (the “Company”) announces that it recorded valuation gains on securities and share of gains of investments in associates and joint ventures in the three months ended March 31, 2021 (January 1, 2021 to March 31, 2021), as follows.
- Details
In the three months ended March 31, 2021 (January 1, 2021 to March 31, 2021), as a result of evaluating fair value related to investments in FinTech-related companies in the investment business, the Company recorded ¥30,603 million as "other income" in the Consolidated Statements of Income (Summary)
Also, during the first quarter ended March 31, 2021, the Company made an investment in shares of SY Holdings Co., Ltd., which have been accounted for using the equity method. As a result, the Company recorded income of ¥20,513 million in share of income of investments in associates and joint ventures, mainly including a gain from the bargain purchase of SY Holdings Co., Ltd. proportional to the share held by the Company, in the Consolidated Statements of Income (Summary) for the three months ended March 31, 2021. Because the measurement of fair values of the identifiable assets and liabilities as of the acquisition date was incomplete and the calculation of the difference with the cost of the investment was unfinished as of March 31, 2021, the gain from the bargain purchase is a provisional amount based on all information available as of the acquisition date. Accordingly, the amount of gain from the bargain purchase may change when the measurement of fair values of identifiable assets and liabilities is completed.
- Impact on Financial Results and Earnings Forecasts
For the gain from the bargain purchase, we will promptly announce any matters that require disclosure in the future at the time the measurement of fair values of identifiable assets and liabilities is completed.