TOKYO, Jun 15 (Pulse News Wire) – Revolution CO.,LTD. (8894.T) received an interim review report indicating that its semi-annual consolidated financial statements for the fiscal half-year ending October 31, 2026, could not be conclusively verified due to potential accounting irregularities involving real estate transactions.
The audit firm Aria conducted a mid-term review of the company's financial statements covering the period from November 1, 2025, to April 30, 2026. During this process, concerns arose regarding certain buyback agreements related to property purchases made by subsidiary Yamawake Estate. These agreements allowed for properties to be repurchased at significantly higher prices than their initial purchase price, raising doubts about appropriate revenue recognition. As a result, Revolution Co.
Established an independent internal investigation committee, to thoroughly examine these transactions and assess their impact on the financial statements. However, due to insufficient evidence gathered during the review, the auditor was unable to conclude whether significant adjustments were necessary to the reported figures. In light of these findings, the company stated it would continue to treat the affected transactions as general real estate sales until further investigations are completed. Revolution Co.
Apologized to shareholders and investors for any inconvenience caused by this situation.
🟡 Confidence: Standard AI-translated content.