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  "documentTitle": "Nidec Corp. (6594 JP)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson C. Block",
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  "presentationDate": "2016-12-13 00:00:00",
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  "notes": "This is a research note page focusing on accounting irregularities and potential manipulation of impairment charges.",
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      "text": "We strongly doubt that Nidec met the requirements to impair much of the PP&E.",
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      "text": "Typical indicators of impairment include: A significant decrease in the market price... A significant adverse change in the extent or manner... A significant adverse change in legal factors... An accumulation of costs... A current-period operating loss...",
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      "text": "We strongly doubt that Nidec met the requirements to impair much of the PP&E. Under U.S. GAAP accounting standards, “indicators” of PP&E impairment must be present as a prerequisite for a company to perform impairment tests.",
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      "kind": "paragraph",
      "text": "accounting – particularly given that on the two occasions the auditor’s U.S. regulator inspected the auditor, the regulator found inventory valuation issues in the audits of Nidec. We provide more detail in Nidec’s Auditor is Highly Questionable...",
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      "text": "Management’s statements leading up to Q4 seem to contradict the purported need for PP&E (and inventory) write-offs. Some of management’s statements could even be construed as admitting that the primary purpose of the write-offs was to improve future reported profits.",
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      "text": "Nidec's PP&E Impairments are Suspect",
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