OSAKA (Kyodo) Housing maker SxL Corp. said Friday it will correct financial statements for the past four years by late June due to an accounting irregularity in which the firm illegally booked sales of incomplete houses.
SxL said it has found that 748 million yen in sales from 32 houses were subject to the accounting irregularity over the four years to March 2006.
House sales must be booked for the year they are completed and delivered to buyers. But some in the company reportedly booked sales of incomplete houses before delivery to achieve annual sales targets.
The accounting irregularity came as the company promoted campaigns to achieve business plan targets, SxL President Toshio Matsukawa told a news conference.
"We have fallen short of educating employees fully about compliance with the law or ensuring sufficient internal control," he said.
Matsukawa denied that the management team was involved.