(b)Subsidiaries

Subsidiaries are entities controlled by the Company. The Company controls an entity when it is exposed to,

or has rights to, variable returns from its involvement with the entity and has the ability to affect those

returns through its power over the entity. The financial statements of subsidiaries are included in the

consolidated financial statements from the date that control commences until the date that control ceases.

The accounting policies of subsidiaries have been changed when necessary to align them with the policies

adopted by the Company. Losses applicable to the noncontrolling interest (“NCI”) in a subsidiary are

allocated to the NCI even if doing so causes the NCI to have a deficit balance.

(c)Acquisitions from entities under common control

Business combinations arising from transfers of interests in entities that are under the control of the

shareholder that controls the Company are accounted for as if the acquisition had occurred at the beginning

of the earliest comparative year presented or, if later, at the date that common control was established; for

this purpose, comparatives are restated. The assets and liabilities acquired are recognized at the carrying

amounts recognized previously in the Company controlling shareholder’s consolidated financial statements.

The components of equity of the acquired entities are added to the same components within Company

equity and any gain/loss arising is recognized directly in equity.

(d)Loss of control

Upon a loss of control, the Company derecognizes the assets and liabilities of the subsidiary, any NCI, and

the other components of equity related to the subsidiary. Any surplus or deficit arising on the loss of control

is recognized in profit or loss. If the Company retains any interest in the former subsidiary, then such

interest is measured at fair value at the date that control is lost.

(e)Transactions eliminated in consolidation

Intragroup balances and transactions, and any unrealized income or expenses arising from intragroup

transactions, are eliminated in preparing the consolidated financial statements. Unrealized gains arising

from transactions with equity-accounted investees are eliminated against the investment to the extent of the

Company’s interest in the investee. Unrealized losses are eliminated in the same way as unrealized gains,

but only to the extent that there is no evidence of impairment.

(2)Financial instruments

(a)Recognition of financial assets and financial liabilities

Transactions of financial assets and financial liabilities are recognized when the Company becomes a party

to the contractual provisions of the financial instruments.

(b)Classification and measurement of financial assets

Financial assets are classified into the following categories on initial recognition:

(i)Financial assets measured at amortized cost

Financial assets shall be measured at amortized cost if both of the following conditions are met:

•The financial assets are held within a business model whose objective is to hold financial assets in order to

collect contractual cash flows and

•The contractual terms of the financial asset give rise on specified dates to cash flows that are solely

payments of principal and interest on the principal amount outstanding.

Financial assets measured at amortized cost are initially recognized at its fair value, plus transaction

costs directly attributable to the acquisition. Subsequent to the initial recognition, they are measured at

amortized cost using the effective interest method.

(ii)Financial assets measured at fair value through profit or loss (“FVTPL”)

Financial assets other than financial assets measured at amortized cost are classified as financial assets

measured at FVTPL.

Financial assets measured at FVTPL are initially recognized at fair value and attributable transaction

costs are recognized as profit or loss when incurred. Subsequent to the initial recognition, they are

measured at fair value, and gains and losses arising from changes in fair value are recognized as profit

or loss.

(c)Impairment of financial assets

For financial assets measured at amortized cost, an allowance for expected credit losses is recognized. At

the end of each reporting period, the Company assesses whether the credit risk on each financial asset has

increased significantly since initial recognition. If the credit risk has not increased significantly since initial

recognition, the Company recognizes the loss allowance at an amount equal to the 12-month expected

credit losses. Meanwhile, if the credit risk has increased significantly since initial recognition, the Company

recognizes the loss allowance at an amount equal to the lifetime expected credit losses.

There is a rebuttable presumption that the credit risk on a financial asset has increased significantly since

initial recognition when contractual payments are more than 30 days past due. Financial assets, all or part of

which cannot be collected or are presumed difficult to collect, or financial assets that are more than 90 days

past due, are defined to be in default.

Credit losses are measured as the present value of the difference between all contractual cash flows that are

due to the Company in accordance with the contract and all the cash flows that the Company expects to

receive, discounted at the original effective interest rate, and expected credit loss is the weighted average of

the credit losses with the probability of the default occurring used for the weighting.

The Company directly reduces the gross carrying amount of a financial asset when it has no reasonable

expectations of recovering the contractual cash flows on a financial asset in its entirety or a portion thereof.

For financial assets measured at amortized cost, expected credit loss is recognized as loss allowance. The

loss allowance and the reversal of a loss allowance are recognized in profit or loss as an impairment gain or

loss.

(d)Classification and measurement of financial liabilities

(i)Financial liabilities measured at amortized cost

Financial liabilities measured at amortized cost are initially recognized at fair value, minus directly

attributable transaction costs. Subsequent to the initial recognition, they are measured at amortized cost

using the effective interest method. Loans payables and other payables are included in this category.

(ii)Financial liabilities measured at FVTPL

Financial liabilities measured at FVTPL are initially recognized at fair value and attributable

transaction costs are recognized as profit or loss when incurred. Subsequent to the initial recognition,

they are measured at fair value, and gains and losses arising from changes in fair value are recognized

as profit or loss. Warrant liabilities and derivative liabilities are included in this category.

(e)Derecognition of financial assets and financial liabilities

The Company derecognizes a financial asset when (i) the contractual rights to the cash flows from the

financial asset expire or (ii) it transfers the rights to receive the contractual cash flows in a transaction in

which substantially all of the risks and rewards of ownership of the financial asset are transferred. The

Company derecognizes a financial liability when its contractual obligations are discharged or canceled or

expired.

(f)Fair value measurement

The fair value of financial assets and financial liabilities is the price that would be received to sell an asset

or paid to transfer a liability in an orderly transaction between market participants on the measurement date.

(g)Cash and cash equivalents

Cash and cash equivalents in the consolidated statements of financial position and consolidated statements

of cash flows comprise cash and short-term, highly-liquid investments that are readily convertible to a

known amount with an insignificant risk of change in value.

(h)Cash segregated as deposits

Cash segregated as deposits includes cash deposited in trust accounts on which the Company earns interest,

and is reported as such in the consolidated statements of financial position.

(i)Customer accounts receivable

Customer accounts receivable is mainly due from credit card companies, which are payment processors, for

settlement of funds from customers.

Customer accounts receivable is recognized initially at transaction price. The Company holds the customer

accounts receivable with the objective of collecting the contractual cash flows and therefore measures them

subsequently at amortized cost.

(3)Crypto assets

(a)Crypto assets held

Crypto assets held (current assets) consist of cryptocurrencies for facilitating customer transactions and are

recognized as inventories. Cryptocurrencies for facilitating customer transactions are recognized at

acquisition price at initial recognition, and at fair value, less costs to sell subsequent to the initial

recognition since these are held with the purpose of acquiring broker-traders’ margin. Subsequent to the

initial recognition, changes in fair value are recognized in profit or loss in the period in which the change

occurs. The Company uses major third-party exchanges with high volume and liquidity to measure the fair

value of its cryptocurrency. The exchange selected by the Company for each cryptocurrency offers the

highest volume and liquidity of trades (i.e., principal market). If a principal market does not exist (e.g.,

when the volume and liquidity of trades are similar between two or more different markets), the Company

uses the most advantageous market. The most advantageous market offers high volume, liquidity of trades,

and the most favorable spread, maximizing the amount that would be received to sell the asset, net of

transaction costs, or minimizing the amount that would be paid to transfer the liability. The fair value is

measured by using a midmarket pricing of the principal market or the most advantageous market.

Substantially all of crypto assets held (current assets) correspond to crypto assets borrowed from or

deposited by customers under the Coincheck Lending program.

(b)Crypto asset borrowing

Under the Coincheck Lending program, when the Company enters into borrowing agreements with

customers, the Company obtains control over the crypto assets deposited by those customers, regardless of

whether the Company has actually borrowed the crypto assets or the crypto assets remain deposited with

the Company. These crypto assets are recognized as inventories under "Crypto assets held" in the

consolidated statement of financial position and the Company’s corresponding obligation to return these

crypto assets to customers is recognized as a liability under "Crypto asset borrowings." Crypto asset

borrowings are initially measured at the fair value of the subject crypto assets as the Company incurs an

obligation to return the same type and the same amount of crypto assets deposited by customers under the

program. Subsequent to initial recognition, changes in fair value of crypto asset borrowings are recognized

in profit or loss in the period in which the changes occur because the fair value of the crypto assets fairly

demonstrates the obligation to return the crypto assets deposited by customers under the program. In

addition, the borrowing fee paid to the customer, which is in the same denomination as the borrowed asset,

is calculated by multiplying the quantity of the borrowed crypto assets by the fee rate (calculated as a per

annum percentage of the borrowed amount) agreed with the customer and recognized as an expense over

the borrowing period.

(4)Property and equipment

(a)Recognition and measurement

Property and equipment are measured using the cost model and are reported at the acquisition cost, less

accumulated depreciation and accumulated impairment losses. Acquisition costs include costs directly

related to the acquisition of assets and costs for dismantling and removing.

(b)Depreciation

Depreciation is calculated based on the depreciable amount. The depreciable amount is calculated as the

acquisition cost of an asset, less its residual value.

Property and equipment are depreciated over the estimated useful life of each part of a property item, and

depreciation is recognized in profit or loss applying the straight-line method. The straight-line method is

applied because it is considered to most closely reflect the expected pattern of consumption of the future

economic benefits embodied in the asset.

The estimated useful lives of major property and equipment are as follows:

Leasehold improvements: 1 year to 5 years

Equipment and fixtures: 2 years to 14 years

Leasehold improvements are depreciated by the straight-line method over the term of the lease (including

reasonably certain options periods) or the estimated useful life of the improvements, whichever is shorter.

Depreciation methods, useful lives, and residual values are reviewed at each reporting date, and

adjustments are made when required.

(5)Intangible assets

(a)Goodwill and internally generated intangible assets

Goodwill arising on the acquisition of subsidiaries is measured at cost less accumulated impairment losses.

The Company recognizes software development costs as intangible assets if the development costs can be

reliably determined, implementation is technologically feasible, there is a high probability for generating

future economic benefit, and there are adequate resources to develop and use them. Subsequent to the initial

recognition, internally generated intangible assets are measured at the acquisition cost, less accumulated

amortization and accumulated impairment losses.

(b)Amortization

Amortization is based on the acquisition cost of an asset less its residual value.

Amortization of intangible assets is recognized in profit or loss applying the straight-line method over the

estimated useful life from the time when the asset is available for use.

Goodwill is not amortized.

The estimated useful lives of major intangible assets are as follows:

Internally generated intangible assets: 3 to 5 years

Amortization methods, useful lives, and residual values are reviewed at each reporting date, and

adjustments are made when required.

The Company considers the useful life of intangible assets to be indefinite only if there is no foreseeable

limit to the period over which the intangible assets are expected to generate net cash inflows for the

Company based on analysis of all relevant factors. Intangible assets with indefinite useful lives are not

amortized and are subject to impairment tests at the same time each year and when there are indications of

impairment.

(6)Leases

The Company assesses whether a contract is or contains a lease at the inception of the contract. The Company

recognizes a right-of-use asset and its corresponding lease liability at the lease commencement date.

A right-of-use asset is measured at cost at the commencement date. Subsequently, the Company measures a

right-of-use asset applying the cost model. A right-of-use asset is measured at cost, less any accumulated

depreciation and any accumulated impairment losses. The right-of-use asset is depreciated using the straight-

line method over the estimated useful life of the asset or the relevant lease term, whichever is shorter. The

Company determines the lease term as the sum of the noncancellable period and the periods covered by an

option to extend (or terminate) the lease term if the lessee is reasonably certain to exercise (or not exercise) the

option. The estimated useful lives of right-of-use assets are approximately 1 year to 5 years.

The Company measures a lease liability at the present value of the lease payments that are not paid at the

commencement date, discounted using the interest rate implicit in the lease or, if such rate cannot be readily

determined, the Company’s incremental borrowing rate. Subsequently, the lease liability is measured by

adjusting the carrying amount to reflect interest on the lease liability and/or the lease payment. When

reassessing or modifying a lease, the Company remeasures the carrying amount of the lease liability and

accordingly adjusts the carrying amount of the related right-of-use asset.

For short-term leases and leases of low-value assets, the Company recognizes the lease payments associated

with those leases as an expense on a straight-line basis over the lease term.

(7)Impairment of non-financial assets

Non-financial assets are reviewed for impairment at the end of each reporting period or if there is an indication

of impairment and whenever events or changes in circumstances indicate that the carrying amount may not be

recoverable. If any such indication exists, the asset’s recoverable amount is estimated. An impairment loss is

recognized in the consolidated statements of profit or loss and other comprehensive income if the asset’s

carrying amount is greater than its estimated recoverable amount. The recoverable amount is estimated as the

higher of the asset’s fair value, less costs to sell and value in use.

For the purposes of conducting impairment reviews, assets are grouped into cash-generating units to which the

assets belong. Impairment testing is performed at least annually and whenever there is an indication that the

cash-generating unit containing goodwill or intangible assets with an indefinite useful life may be impaired.

An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying

amount that would have been determined, net of depreciation or amortization, if no impairment loss had been

recognized.

(8)Warrants

Share purchase warrants issued by Coincheck Parent are accounted for as warrant liability. The warrants are

initially recognized at fair value, and in subsequent periods measured at FVTPL with any changes in fair value

recognized in profit or loss until the warrants are exercised, redeemed, or expire.

(9)Employee benefits

(a)Short-term employee benefits

Short-term employee benefits, including salaries, bonuses, and paid annual leave, that are expected to be

settled wholly within 12 months after the end of the reporting periods, are expensed as the related service is

provided. A liability is recognized at the amounts expected to be paid when the liabilities are settled if the

Company has a present legal or constructive obligation to pay this amount as a result of past service

provided by employees and the obligation can be estimated reliably.

(b)Termination benefits

Termination benefits are expensed at the earlier of when the Company can no longer withdraw the offer of

those benefits and when the Company recognizes costs for a restructuring. If benefits are not expected to be

settled wholly within 12 months of the reporting date, then they are discounted to their present value.

(10)Provisions

Provisions are recognized when, if the Company has legal and constructive obligations because of past events, it

is probable that an outflow of resources embodying economic benefits will be required to settle those

obligations, and the amounts of those obligations can be reasonably estimated. Provisions are discounted to the

present value of the estimated future cash flows using a pretax rate that reflects the time value of money and the

risks specific to the relevant liabilities.

The unwinding of the discount is recognized in profit or loss.

(11)Equity

Ordinary Shares issued by Coincheck Parent are classified as equity, and the proceeds from issuance of such

shares are included in Ordinary Shares and capital surplus on the consolidated statements of financial position.

(12)Foreign currency translations

(a)Foreign currency translation

Foreign currency transactions are remeasured into the functional currency of each entity within the

Company using the exchange rates at the dates of the transactions or rates that approximate the exchange

rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are

remeasured into the functional currency using the spot rates of exchange at the end of each reporting

period. Non-monetary assets and liabilities measured based on historical cost that are denominated in

foreign currencies are remeasured at the exchange rate at the date of the initial transaction. Exchange

differences arising from the remeasurement or settlement are recognized in profit or loss. Translation

differences on items whose fair value gain or loss is recognized in profit or loss are also recognized in

profit or loss.

(b)Foreign operations

The assets and liabilities of foreign operations are translated using the spot exchange rates at the end of the

reporting period, while income and expenses of foreign operations presented in profit or loss and other

comprehensive income are translated using the exchange rates at the dates of the transactions or rates that

approximate the exchange rates at the dates of the transactions. The exchange differences arising on

translation for consolidation are recognized in other comprehensive income.

(13)Revenue

Revenues that arise from contracts with customers are recognized applying the five-step approach of IFRS

15, Revenue from Contracts with Customers, as shown below. Consideration received from customers does not

include significant financing components, because the Company receives payments from its customers soon

after it fulfills its performance obligations.

Step 1: Identify the contract with a customer

Step 2:Identify the performance obligations in the contract

Step 3:Determine the transaction price

Step 4: Allocate the transaction price to the performance obligations in the contract

Step 5:Recognize revenue when (or as) the entity satisfies a performance obligation

Details of revenue and revenue recognition criteria for each of major revenue items recorded in the consolidated

statements of profit or loss and other comprehensive income are summarized as follows:

(a)Transaction revenue

Transaction revenue is mainly derived from sales transactions with the Company’s customers. The

Company’s customers include parties who hold accounts and utilize the services provided on the

Company’s crypto asset platforms, which include customers on the Marketplace platform, as well as cover

counterparties in sale cover transactions on the Company’s and third-party exchanges. However, users that

purchase crypto assets from other users on the Company’s Exchange platform but are not charged a

commission do not meet the definition of a customer under IFRS 15. When the Company trades with

customers on its Marketplace platform, the Company adds a bid-ask spread to the prices of the Company’s

cover transactions. The spread is set/revised by the Company in a range of 0.1% to 5.0% for each

cryptocurrency based on prevailing market conditions, including competitors’ offers. The Company has the

discretion to add a spread that might be higher than the above-mentioned range in instances where there are

sudden market movements and shortage of liquidity in the market to ensure the execution of the

transactions with customers. Furthermore, the spreads are applied to all transactions with customers

regardless of whether the positions made by those transactions are offset before the execution of cover

transactions.

The Company has a performance obligation in its contracts with customers to transfer control of the

cryptocurrencies to the customer and to deliver cryptocurrencies for transactions with customers. Contracts

are defined at the transaction level and revenue is recognized at the point of time when this performance

obligation is fulfilled in accordance with IFRS 15. When the Company receives cryptocurrencies as

noncash consideration, the Company measures received cryptocurrencies at fair value at the time of

delivery.

The Company determined that it acts as a principal in such transactions as it controls (i.e., has the ability to

direct the use of, and obtain substantially all of the remaining benefits from) the cryptocurrencies it holds as

inventory before such cryptocurrencies are transferred to the Company’s customers. Specifically, the

Company has the ability to decide whether to hold the crypto assets to balance the Company’s inventory

level or sell the crypto assets to customers or cover counterparties. The Company also has the ability to

decide to whom the crypto assets will be sold and prevent others from directing the use of the crypto assets.

The Company is also entitled to substantially all of the economic benefits of the crypto assets through sales

of the crypto assets. Additionally, the Company is primarily responsible for fulfilling the commitment to

provide cryptocurrencies to customers on its Marketplace platform pursuant to its terms of service, has

inventory risk as the Company has no right to return unsold cryptocurrencies to customers or cover

counterparties from which it has purchased such cryptocurrencies, and sets the price of the cryptocurrencies

it sells on its Marketplace platform.

(b)Commission received

Commission received primarily includes revenue from remittance fees, deposit and withdrawal and transfer

fees, commissions that are received from the issuer and the applicants in the IEO business, commissions

that arise from transactions on the Coincheck NFT Marketplace, and commissions that arise from

transactions on the Exchange platform.

In accordance with IFRS 15, remittance fees are recognized as revenue when the performance obligation

that arises from a customer order to remit cryptocurrencies is satisfied.

Deposit and withdrawal fees are recognized as revenue when the customer’s order to deposit or to withdraw

cryptocurrencies are fulfilled, resulting in the performance obligation being satisfied.

The IEO business recognizes commission revenue when the issuer’s tokens are listed on its Marketplace

platform. The Company acts as a principal as it holds the primary responsibility to the issuer. Commissions

received from the applicants in the IEO business are recognized as revenue when the obligations to deliver

the issuer’s tokens to the applicants are performed. The Company acts as an agent to broker a transaction of

orders participating in the issuer’s IEO and delivers tokens on behalf of the issuer.

Commissions that arise from transactions on the Coincheck NFT Marketplace are recognized as revenue

when the performance obligation of brokering transactions between customers is fulfilled. The Company

acts as an agent since the performance obligation is to arrange to transfer NFTs of the selling party to the

other party.

Commissions that arise from transactions on the Exchange platform are recognized as revenue when the

performance obligation of brokering transactions between customers is fulfilled. The Company acts as an

intermediary between customers for orders to buy or sell crypto assets and receives a brokerage fee. The

Company does not control the underlying crypto assets before these are transferred to other customers. The

Company acts as an agent to broker a transaction of orders to transfer crypto assets of the selling party to

the other party.

When the Company receives cryptocurrencies for commissions as noncash consideration, the Company

measures received cryptocurrencies at fair value at the time the transaction is completed.

(c)Other revenue

Other revenue is mainly derived from sales of NFTs owned by the Company on the Coincheck NFT

Marketplace. In accordance with IFRS 15, sales revenue of NFTs is recognized as revenue when the

performance obligation of delivering the NFTs to the customer is fulfilled. The Company acts as a principal

since the Company has the ability to decide the price and is responsible for inventory risk.

(14)Income taxes

Income tax expenses include current taxes and deferred taxes. They are recognized in profit or loss except to the

extent that they relate to a business combination, or items recognized directly in equity.

Current taxes are the estimated taxes to be paid or refunded relating to taxable income or losses for the reporting

period by applying the enacted tax rate or the substantively enacted tax rate at the end of the reporting period,

adjusted for estimated taxes to be paid or refunded for prior years.

Deferred tax assets and liabilities are recognized with respect to the temporary difference between the carrying

amount and the tax bases of assets and liabilities. Deferred tax assets and liabilities are not recognized with

respect to the temporary differences arising from the initial recognition of assets and liabilities in transactions

(other than business combinations) that affect neither the accounting profit nor the taxable profit (tax loss) and

does not give rise to equal taxable and deductible temporary differences and the temporary differences arising

from investments in subsidiaries, if the Company can control the timing of the reversal of the temporary

difference and it is probable that the temporary difference will not be reversed in the foreseeable future.

Deferred tax assets and liabilities are calculated using the tax rate that is expected to be applied at the time when

the temporary difference is reversed based on tax laws that are enacted or substantively enacted by the end of

the reporting period. Deferred tax assets are recognized to the extent that it is probable that taxable profit will be

available against which the deductible differences can be utilized. Deferred tax assets are reassessed at the end

of each reporting period and recognized to the extent that it is probable that future taxable profit will allow the

deferred tax asset to be recovered.

Deferred tax assets and liabilities are set off when the Company has a legally enforceable right to set off

deferred tax assets against deferred tax liabilities, and the deferred tax assets and deferred tax liabilities relate to

corporate income taxes levied by the same taxation authority on either the same taxable entity or different

taxable entity, which intends to settle the deferred tax assets and liabilities on a net basis or to realize the assets

and liabilities simultaneously.

(15)Earnings per share

Basic earnings per share are calculated as profit attributable to owners of the Company, divided by the

weighted-average number of common shares outstanding during the reporting period.

Diluted earnings per share (earnings per share after adjustment for potential shares) are calculated after

adjustment for the dilutive effects of all potential common shares.

(16)New or amended accounting standards and interpretations issued but not yet applied

The new or amended accounting standards and interpretations issued but not yet applied for the year ended

March 31, 2025 are as follows. The amendments of IAS 21 and IFRS 19 are not expected to affect the

Company’s consolidated financial statements. The Company is evaluating the impact of applying other new or

amended accounting standards.


Standards	Name of Standards	Effective date (The year beginning on or after)	Adoption periods of the Company (For the year ending)	Content
IAS 21	The Effects of Changes in Foreign Exchange Rates	January 1, 2025	March 31, 2026	Amendments to accounting for lack of exchangeability
IFRS 7	Financial Instruments: Disclosures	January 1, 2026	March 31, 2027	Amendments to the classification and measurement of financial instruments
IFRS 9	Financial Instruments	January 1, 2026	March 31, 2027
IFRS 7	Financial Instruments: Disclosures	January 1, 2026	March 31, 2027	Amendment to gain or loss on derecognition on IFRS 7; Amendments to introduction, disclosure of deferred difference between fair value and transaction price, and credit risk disclosures on the Implementation Guidance for IFRS 7
IFRS 9	Financial Instruments	January 1, 2026	March 31, 2027	Amendment to lessee derecognition of lease liabilities and transaction price
IFRS 10	Consolidated Financial Statements	January 1, 2026	March 31, 2027	Amendment to determination of a ‘de facto agent’
IAS 7	Statement of Cash Flows	January 1, 2026	March 31, 2027	Replacement of the term ‘cost method’ to ‘at cost’
IFRS 7	Financial Instruments: Disclosures	January 1, 2026	March 31, 2027	Amendment to contracts referencing Nature- dependent electricity
IFRS 9	Financial Instruments	January 1, 2026	March 31, 2027
IFRS 18	Presentation and Disclosure in Financial Statements	January 1, 2027	March 31, 2028	Replacement of IAS 1 and helping to achieve comparability of the financial performance of similar entities