Abalance Rewrites Years of Earnings After Accounting Probes and a Fictitious-Sales Allegation
Abalance has rewritten four periods of results after finding improper accounting in overseas raw-material buy-back deals and a suspected fictitious-sales scheme at a subsidiary it later absorbed, and its auditor twice declined to give a conclusion on the numbers. With a governance review and overseas-subsidiary reorganization still underway, the company has withheld its earnings and dividend guidance for the year ahead.