TOKYO, Jul 03 (Pulse News Wire) – Abalance Corporation (3856.T) disclosed findings from an investigation committee report received on June 30, 2026. The report addressed concerns over fictitious sales and questionable accounting practices related to a merger with Abit Co., Ltd.
On March 31, 2025. Key issues identified included improper revenue recognition and bad debt handling involving non-existent entities. The investigation found that sales totaling ¥20 billion and ¥5 billion in fiscal years ending June 2019 and June 2020 respectively should not have been recognized.
Additionally, expenses paid to a subcontractor should have been recorded as receivables rather than costs. As a result, losses of ¥200,000 thousand were overstated in the consolidated income statements for those periods. In response, Abalance plans to implement measures to prevent recurrence and improve internal controls.
The company apologized for causing concern among shareholders and investors.
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