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Toshiba accounting scandal snowballs to 24 cases, ¥54.8 billion

JIJI

Toshiba Corp. has discovered 15 new cases of inappropriate accounting and estimates that the electronics group will have to revise past operating profits by ¥3.6 billion.

The latest findings from Toshiba’s internal investigation have brought the number of accounting irregularities to 24 and the size of its operating profit corrections to ¥54.8 billion, according to the firm’s announcement Friday.

During the internal investigation, which was conducted in parallel with a probe by a third-party panel, Toshiba found 12 cases of suspect accounting between fiscal 2009 and fiscal 2013. In these cases, Toshiba failed to appropriately record loan-loss allowances, valuation losses and other items.

In addition, Toshiba’s special investigative team, launched soon after it recognized the accounting problem, has discovered three cases of irregularities concerning projects that had completed by fiscal 2010.

It also disclosed some of the details regarding the nine problem cases already announced and requiring corrections to operating profit totaling ¥51.2 billion.

Among the nine, a project to develop and install a communications system for smart meters for a utility accounted for ¥25.5 billion of the corrections. Toshiba won the project in September 2013.

This was followed by a renewal project for electronic toll collection equipment, which accounted for ¥14.4 billion.

Due to the accounting irregularities, Toshiba has delayed it earnings announcement for fiscal 2014 ended in March this year. It also plans to cancel the dividend for the latest year.