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Japan's Toshiba unveils affiliate's accounting misconduct

Xinhua,December 26, 2017 Adjust font size:

TOKYO, Dec. 26 (Xinhua) -- Japan's Toshiba Corp. said Tuesday that it had discovered accounting misconduct in one of its affiliates.

Toshiba Infrastructure Systems & Solutions Corp., an affiliate of Toshiba Corp. that conducts electrical installation work, was found attempting to cover losses of a money-losing project by attributing its expenses to another profitable business.

The misconduct, lasting for four years through September 2017, involved a total amount of some 95 million yen (838,000 U.S. dollars), according to Toshiba.

The misconduct was found after a subcontractor consulted Toshiba over expenses.

Toshiba was hit by another accounting scandal in 2015, when it admitted padding its profits by 152 billion yen between 2008 and 2014.

The scandal led to huge falls in the multinational conglomerate's stock prices and its chief at that time and half of its board resigned over the scandal. Enditem