Monday, November 11

Akebono Brake Finds Inappropriate Accounting

Japanese automotive parts maker Akebono Brake Industry Co said it discovered a case of inappropriate accounting and delayed the filing of its quarterly results to investigate other possible breaches.

The news may rekindle fears of more Japanese accounting scandals after Toshiba Corp earlier this year revealed that it overstated past profits by 155 billion yen ($1.3 billion).

Akebono Brake supplies to General Motors, Nissan Motor and Toyota Motor, who make up around half of its sales, according to Akebono’s last earnings report.

Akebono Brake found that it overstated sales by around 210 million yen ($1.7 million) in September, and was now studying whether there were other cases of inappropriate book-keeping, the company said in a regulatory filing.

It was originally due to announce its July-September results on Wednesday, but it said it would take around a month for an independent committee to investigate.

Independent investigators who probed Toshiba blamed a breakdown in governance and a corporate culture that discouraged workers from questioning their superiors. ($1 = 121.2300 yen) (Reporting by Ritsuko Ando; Editing by Muralikumar Anantharaman)


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