Toshiba Moves Accounting Probe Into Chip Business
Following an independent investigation set up earlier in May, Toshiba will now probing accounting irregularities in its TV, PC and Chip divisions
Toshiba has said that it is going to extend its investigation into skewed accounting practices into its television, PC, and chip businesses.
An official probe was launched earlier in May, which consists of an independent committee, after accounting flaws were found in nine infrastructure projects.
Thorough investigation
In an announcement today, Toshiba revealed that the probe had been extended to cover the visual products, semiconductor and personal computer businesses.
“The Company has decided that these concerns also require thorough investigation by the Independent Investigation Committee in addition to the accounting based on the percentage of completion method,” Toshiba said in the statement on Friday.
“Further, in parallel with the investigation by the Independent Investigation Committee, the Company itself is carrying out a comprehensive, Company-wide self-check, that includes its subsidiaries, regarding the appropriateness of accounting, and will promptly make a public announcement any identified matters that should be additionally delegated to the Independent Investigation Committee.”
Toshiba has said it will be marking down operating profit by 50 billion yen (£265m) for the three years up to March 2014, following the discovery of inappropriate financial reporting.
This is the second accounting investigation at the firm in two years, and has meant the company has had to delay its quarterly and annual financial earnings results announcement. Toshiba has said that it will release earnings “as soon as possible” after the investigation is complete.
The probe will investigate accounting inconsistencies from the period of April 2010, and is not expected to come back with a result until late June or July.
When the irregularities were first revealed in April shares in Toshiba dropped almost 20 percent, but today’s announcement has boosted Toshiba 0.7 percent in Tokyo.
“The Company expresses its most sincere apologies to shareholders, investors and all other stakeholders for any concerns or inconvenience caused on this occasion, and will make its best efforts to restore your trust. Thank you for your ongoing support,” said Toshiba.
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