TOKYO, Mar 11 (Pulse News Wire) – Technologies,Inc. (5248.T) refuted claims made in a March 11 Diamond Online article suggesting potential impropriety in its accounting treatment related to a construction project in Fukushima undertaken by subsidiary Eco Leather.
The company stated it adheres to generally accepted accounting principles in Japan and has consulted with auditors to ensure appropriate handling of the transaction. Specifically addressing concerns about revenue recognition and debt guarantees, Technologies,Inc. noted that recovery of payment was deemed secure based on multiple offers from financially capable entities interested in purchasing the facility.
Additionally, Eco Leather successfully completed the sale of the facility and repaid borrowed funds, negating the need for debt guarantee fulfillment. Regarding the timing of revenue recognition, the firm maintained that long-term contracts allow for revenue recognition based on contract specifics and progress, aligning with established accounting standards. It emphasized ongoing commitment to legal and accounting compliance while requesting continued support from shareholders and investors amidst the scrutiny.
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