Toshiba to Recognize $3 Billion Losses After Accounting Scandal

Toshiba is likely to book a loss of between $2.4 to $3.2 billion arising from improper accounting, Reuters has reported citing people that are aware of the matter.

According to Reuters the charges against Toshiba related to overstated profits in its accounting statements for six years. This has been unearthed by an independent panel that has been investigating the accounting irregularities and big writedowns at the Japanese electronics joint.

It is not yet clear that when this loss will be booked and whether a part of it or all of it will be booked in the the previous  business year that ended in March. Toshiba has suspended any dividends and also has not been able to close its accounting books for the year because of the accounting irregularities scandal.

The scandal has had a hit on the stock price of Toshiba which has devalued by 27 percent since April. This is the biggest accounting scandal in Japan since Olympus admitted of making use of M&A deals to conceal investment losses.

The independent panel that has been appointed by Toshiba has so far unearthed 170 billion yen of overstated profits which is a lot higher than what the company had disclosed itself in June when it said the overstatement was to the tune of 54.8 billion yen.

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