Toshiba Accounting Irregularities Cause Fiscal Report Delay

Toshiba Accounting Irregularities Cause Fiscal Report Delay

Toshiba Corp. has experienced its largest decline in more than three months in Tokyo trading.

According to TonerNews, the company lost about US$4 billion in market value, almost a quarter of its total, since announcing it had uncovered accounting irregularities on May 8.

Initially, the company delayed the release of its fiscal 2014 earnings until September 7. Toshiba then managed to get permission from the securities regulator to postpone the earnings report a second time until September 17. “The company doesn’t risk delisting if it meets the deadline set by the regulator for filing its earnings,” said Shoki Oyabu, a spokesman for the Japanese Exchange Group, which operates the Tokyo Stock Exchange.

Probes into Toshiba’s financial reports have led to the resignations of the company’s president and his two predecessors and caused at least US$1.2 billion has been written down. Costs related to the scandal wiped out profit from Toshiba’s businesses, which span nuclear reactors, computer memory chips and laptop computers.

Toshiba claims it has revamped its board, apologized to investors and appointed a special committee to try to win back trust for the 140-year-old pillar of Japan.

Toshiba announced on August 18 that it expects an operating income of 170 billion Yen (US$1.4 billion) for the year ended March 2015 and pretax profit of 140 billion Yen ($1.2 billion).

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