Akebono Brake Industry Co. delayed the release of its earnings and began an investigation into its accounting after finding evidence that the Japanese auto-parts maker inflated its revenue.
Financial results for the latest quarter will probably be disclosed in December after a committee examines the extent of the possible accounting irregularities, Tokyo-based Akebono said in a statement Wednesday. The company found evidence of revenue being overstated by ¥210 million ($1.7 million) in the second quarter, it said.
The disclosure comes amid a scandal-ridden season in Japan that saw Toshiba Corp. admit to manipulating profits for years and air-bag maker Takata Corp. conduct the biggest recall in automotive history. It also comes as Prime Minister Shinzo Abe pushes companies to improve corporate governance.
The investigation probably will last about a month, Akebono said. Spokesman Shingo Suzuki said the company's auditor pointed out that Akebono had sales that were prematurely booked in the September period. The committee will examine whether any similar instances have occurred, he said.
Akebono was founded in 1929, making it one of the oldest companies in Japan's auto industry. It counts some of the world's biggest carmakers as its customers, including Toyota Motor Corp., General Motors Co. and Volkswagen AG, according to Akebono's website.
Its shares rose 2.6 percent to close at ¥362 before its statement.