Establishment of an Internal Investigation Committee
株式会社REVOLUTION, its consolidated subsidiaries WeCapital株式会社 and ヤマワケエステート株式会社
Real estate funds organized and managed by ヤマワケエステート株式会社, and real estate transactions accompanied by repurchase agreements (memoranda of understanding regarding repurchase)
The Company determined that the repurchase transactions may not have been accounted for appropriately in accordance with accounting standards for revenue recognition and other applicable standards. In multiple transactions, suppliers and others repurchased the properties for amounts significantly exceeding the purchase prices.
Related procedures
Investigation by an internal investigation committee (an investigation conducted with external experts)
Kanto Local Finance Bureau (identified as the filing authority for the semi-annual report)
The six-month period ended April 2026 and previously filed annual securities reports and other reports (corrections and other measures are anticipated if the concerns cannot be dispelled)
Company response
The committee will comprise external experts, including certified public accountants, and officers and employees of the Company and its group companies. The investigation will not be conducted in accordance with the Guidelines for Third-Party Committees of the Japan Federation of Bar Associations, and will be carried out in coordination with Audit Corporation Aria. On 15 June 2026, the Company, WeCapital株式会社 and ヤマワケエステート株式会社 each resolved to establish a committee.
The investigation is expected to take approximately 1 month, after which the results will be submitted to Audit Corporation Aria. The audit firm's verification and other procedures are expected to take 1 to 2 months. If the concerns are dispelled and no other issues are identified, the Company may be able to obtain an unqualified conclusion in the interim review report for the third quarter of the fiscal year ending October 2026. If the concerns cannot be dispelled, corrections and other measures are anticipated for the semi-annual report and previously filed annual securities reports and other reports.
The Company will make a timely disclosure promptly after submitting the investigation results to the audit firm. Further actions will be disclosed in a timely manner once decided.
| Item | Details |
|---|---|
| Event name | Establishment of an Internal Investigation Committee |
| Date of occurrence | 15 June 2026 (the date on which the Company and each consolidated subsidiary resolved to establish the committee) |
| Date recognized / date notice received | 15 June 2026 (the date on which the Company received from Audit Corporation Aria an interim review report stating that no conclusion would be expressed on the interim consolidated financial statements in the semi-annual report for the fiscal year ending October 2026) |
| Subject Entity | 株式会社REVOLUTION, its consolidated subsidiaries WeCapital株式会社 and ヤマワケエステート株式会社 |
| Target Locations / Products | Real estate funds organized and managed by ヤマワケエステート株式会社, and real estate transactions accompanied by repurchase agreements (memoranda of understanding regarding repurchase) |
| Cause | The Company determined that the repurchase transactions may not have been accounted for appropriately in accordance with accounting standards for revenue recognition and other applicable standards. In multiple transactions, suppliers and others repurchased the properties for amounts significantly exceeding the purchase prices. |
| Accounting period in which recognized | The six-month period ended April 2026 and previously filed annual securities reports and other reports (corrections and other measures are anticipated if the concerns cannot be dispelled) |
| Type of litigation or proceeding | Investigation by an internal investigation committee (an investigation conducted with external experts) |
| Court or authority | Kanto Local Finance Bureau (identified as the filing authority for the semi-annual report) |
| Investigation structure | The committee will comprise external experts, including certified public accountants, and officers and employees of the Company and its group companies. The investigation will not be conducted in accordance with the Guidelines for Third-Party Committees of the Japan Federation of Bar Associations, and will be carried out in coordination with Audit Corporation Aria. On 15 June 2026, the Company, WeCapital株式会社 and ヤマワケエステート株式会社 each resolved to establish a committee. |
| Outlook | The investigation is expected to take approximately 1 month, after which the results will be submitted to Audit Corporation Aria. The audit firm's verification and other procedures are expected to take 1 to 2 months. If the concerns are dispelled and no other issues are identified, the Company may be able to obtain an unqualified conclusion in the interim review report for the third quarter of the fiscal year ending October 2026. If the concerns cannot be dispelled, corrections and other measures are anticipated for the semi-annual report and previously filed annual securities reports and other reports. |
| Planned follow-up disclosure | The Company will make a timely disclosure promptly after submitting the investigation results to the audit firm. Further actions will be disclosed in a timely manner once decided. |
Items this document does not state (13)
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.The company received from Audit Corporation Aria an interim review report stating that no conclusion would be expressed on the semi-annual report. There was a possibility that Yamawake Estate's real estate transactions subject to repurchase conditions had not been accounted for appropriately in accordance with accounting standards for revenue recognition and other applicable standards.