Business / Corporate

Toshiba to announce next week scope of accounting irregularities probe

Kyodo

Toshiba Corp. will announce early next week the scope of a third-party probe into accounting irregularities which have led the electronics giant to overstate its profits, sources close to the matter said Thursday.

The investigation is expected to extend beyond the three divisions inside the company already found to have engaged in improper accounting regarding its past infrastructure projects.

Toshiba said earlier that it expects to revise down its combined operating profit for the three years through March 2014 by around 50 billion yen ($413 million), but a broader investigation may result in an even greater downward revision.

The investigation, which could take up to five years, is unlikely to cover all of the company’s divisions, however, according to the sources.

The investigation committee set up by Toshiba is comprised of two certified public accountants and two lawyers, including Koichi Ueda, a former superintending prosecutor of the Tokyo High Public Prosecutors Office. Ueda heads the committee.

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