Toshiba is looking into the ‘issues’ surrounding accounting practices within its PC, semi-conductor and TV businesses.
Earlier this month Toshiba set up a third-party Independent Investigation Committee to correct past financial results, which it expects may have been overstated by 50 billion yen (£264 million) or more, between its fiscal years 2011 and 2013.
The probe is looking into the method of accounting used and whether the past financial reports have in fact been accurate or not, specifically around infrastructure project costs and construction work.
The accounting probe is the second at the company in less than two years, and has forced Toshiba to delay reporting its earnings for the fiscal year ending March 2015, reports Reuters.
Within Toshiba’s PC business, the firm is looking into the ‘appropriateness of the timing of recording of profit and loss, and the appropriateness of the amounts thereof, in relation to component supply transactions with original design manufacturers (ODMs)’.
In its chips and TV businesses, Toshiba said there were ‘materials that raised concerns about accounting issues’. This has led it to examine the timing of the recording of promotion fees in its TV business, and the appropriateness of certain valuations of product inventory in its chips business.
Toshiba didn’t say when the investigation will be completed, but it did apologise in a statement: "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."
Image source: Shutterstock