Toshiba Corp. must correct at least ¥152 billion in pretax earnings over seven years after an internal accounting probe revealed the company overstated profits under pressure from management.
The amount is almost triple the ¥55 billion writedown the Tokyo-based company estimated earlier and is in addition to ¥4.4 billion in inaccurate entries found by the Tokyo-based company. Toshiba announced summary findings from a third-party committee investigation Monday and President Hisao Tanaka is scheduled to hold a news conference Tuesday.
Toshiba's market value has declined since May 8, when it withdrew its earnings forecasts, canceled the yearend dividend and widened the accounting probe. The findings raise questions about the involvement of Tanaka, Vice Chairman Norio Sasaki and Atsutoshi Nishida, now an adviser to Toshiba, in the largest Japanese accounting scandal since Olympus Corp.'s accounting fraud surfaced in 2011.