TOKYO, Jun 15 (Pulse News Wire) – Revolution CO.,LTD. (8894.T) announced today that it has established an internal investigation committee involving external experts to address concerns raised by its auditor, Aria Certified Public Accountants, regarding the mid-year consolidated financial statements for the fiscal year ending October 2026.
The company received a notice indicating that the audit firm could not conclude their review due to unresolved issues. The investigation stems from real estate transactions conducted by WeCapital Corporation and Yamawake Estate Corporation, subsidiaries of Revolution CO.,LTD. Specifically, multiple instances were identified where properties purchased from external suppliers were subsequently repurchased at significantly higher prices, raising questions about appropriate accounting treatment according to revenue recognition standards. As a result, the company decided to set up the internal investigation committee to gather sufficient and appropriate evidence to clarify these doubts. The internal investigation committee consists of independent external experts and company personnel.
It will focus on verifying the appropriateness of accounting treatments related to repurchase agreements and ensuring comprehensive coverage of such transactions. The investigation period is expected to last approximately one month, followed by another one to two months for verification by the auditing firm. Depending on the findings, the company plans to either obtain an unqualified opinion for the third quarter interim report or make necessary corrections to previously filed documents. Revolution CO.,LTD. stated that it will promptly disclose the results of the investigation once submitted to the auditing firm.
The company also emphasized its commitment to supporting the committee's activities and providing necessary information to ensure independence, transparency, and effectiveness in the investigative process.
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