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After the scandal with the reporting, Toshiba was assumed that the company reported losses, but its possible size became known only recently. There is a likelihood that Toshiba will not be able to disclose financial data on September 7 in case if further investigation of the manufacturer is required.
Since the company has violated the terms of the publication of financial results, it is threatened with delisting. On Thursday morning, September 3, Toshiba securities rose in price by 2.5%.
Toshiba revealed irregularities in the accounts of its American representation in connection with which it has asked the financial regulator’s permission to delay the report publication for the last fiscal year that ended in March 2015
In July 2015, Toshiba completed the audit, the results of which revealed that the company’s top managers had been fabricating financial statements and overstating the group’s profit for $ 1.2 billion during six years. All the guilty directors were dismissed.
The scandal with reporting forced Toshiba President Hisao Tanaka to resign in July this year. He was succeeded by Masashi Muromachi. Vice Chairman Norio Sasaki and adviser to Toshiba Atsutosi Nishida have quitted along with Tanaka.
As a result, the company has to adjust the profit reporting by 152 billion yen (about $ 1.2 billion). Because of the scandal in May, the company received permission to publish statements of August 31.
In August, Toshiba declared newly discovered errors in the reporting of the 2014-2015 fiscal year ended in March.
According to Nikkei, Toshiba made mistakes when managing inventory discrete semiconductors, which are used in a wide range of electronics. In 2012, in connection with the restructuring, Toshiba has closed three facilities for the production of chips, but before that, the company had increased production and made significant inventory of semiconductors to ensure uninterrupted supplies.
However, sales were weak, which led to the accumulation of leftovers. In such cases, a company should write off the cost of inventories, which Toshiba, apparently, did not do, relying on the rise in demand. Inactivity has resulted in an overstatement of data on income.
Violations in Toshiba’s report affect not only the scope of infrastructure projects, but units manufacturing of semiconductor products, as well as personal computers, too. In this regard, the company has once again asked for permission from the Financial Services Agency of the Ministry of Finance to postpone the publication of the reports until September 7.
In May this year, shares of Toshiba has fallen by 17% on the news that already second accounts examination is approaching the company. Trades were suspended. Then, the Japanese electronics maker announced recalling its own forecast for the fiscal year ended in March, and refused to pay an annual dividend.
source: yomiuri.co.jp
Since the company has violated the terms of the publication of financial results, it is threatened with delisting. On Thursday morning, September 3, Toshiba securities rose in price by 2.5%.
Toshiba revealed irregularities in the accounts of its American representation in connection with which it has asked the financial regulator’s permission to delay the report publication for the last fiscal year that ended in March 2015
In July 2015, Toshiba completed the audit, the results of which revealed that the company’s top managers had been fabricating financial statements and overstating the group’s profit for $ 1.2 billion during six years. All the guilty directors were dismissed.
The scandal with reporting forced Toshiba President Hisao Tanaka to resign in July this year. He was succeeded by Masashi Muromachi. Vice Chairman Norio Sasaki and adviser to Toshiba Atsutosi Nishida have quitted along with Tanaka.
As a result, the company has to adjust the profit reporting by 152 billion yen (about $ 1.2 billion). Because of the scandal in May, the company received permission to publish statements of August 31.
In August, Toshiba declared newly discovered errors in the reporting of the 2014-2015 fiscal year ended in March.
According to Nikkei, Toshiba made mistakes when managing inventory discrete semiconductors, which are used in a wide range of electronics. In 2012, in connection with the restructuring, Toshiba has closed three facilities for the production of chips, but before that, the company had increased production and made significant inventory of semiconductors to ensure uninterrupted supplies.
However, sales were weak, which led to the accumulation of leftovers. In such cases, a company should write off the cost of inventories, which Toshiba, apparently, did not do, relying on the rise in demand. Inactivity has resulted in an overstatement of data on income.
Violations in Toshiba’s report affect not only the scope of infrastructure projects, but units manufacturing of semiconductor products, as well as personal computers, too. In this regard, the company has once again asked for permission from the Financial Services Agency of the Ministry of Finance to postpone the publication of the reports until September 7.
In May this year, shares of Toshiba has fallen by 17% on the news that already second accounts examination is approaching the company. Trades were suspended. Then, the Japanese electronics maker announced recalling its own forecast for the fiscal year ended in March, and refused to pay an annual dividend.
source: yomiuri.co.jp
