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  "documentTitle": "Lasertec Corporation (6920)",
  "authorId": "58_Scorpion_Capital",
  "authorName": "Scorpion Capital",
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  "presentationDate": "2024-06-05 00:00:00",
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  "pageNumber": 63,
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  "notes": "The slide draws a direct parallel between the Olympus accounting fraud and the target company (Lasertec).",
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      "text": "The scheme collapsed when it was forced to recognize the loss via an impairment charge for the acquisitions – exactly as Lasertec will when it admits that earnings and inventory are fraudulently inflated and takes a similar, massive impairment.",
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      "text": "Goodwill/investments % of total assets: 45%",
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      "text": "It hid massive losses and liabilities via a tobashi scheme using off-balance sheet entities. When forced to consolidate them after accounting rules changed, it hatched a scheme to buy them at prices that far exceeded their value, given the embedded losses. The difference was recorded as goodwill and long-term investments – which suddenly spiked and reached 35-45% of total assets in the years prior to 2011. Thus, Olympus kept losses off its books (understating liabilities and overstating owner's equity). When forced to buy the entities and record the liability, it overstated assets (goodwill) as an offset. The scheme collapsed when it was forced to recognize the loss via an impairment charge for the acquisitions – exactly as Lasertec will when it admits that earnings and inventory are fraudulently inflated and takes a similar, massive impairment.",
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      "text": "Source: Scorpion Capital analysis and estimates; Capital IQ data",
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      "text": "Table showing Olympus asset categories from 2004 to 2013, highlighting the spike in goodwill and long-term investments.",
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      "text": "For example, Olympus was exposed in 2011 as one of Japan's largest accounting frauds.",
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      "text": "Olympus total assets by category (¥ billions) – goodwill and long-term investments spiked to ~45% of assets in the years prior to 2011 when the fraud was exposed",
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