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Toshiba accounting probe may result in exec resignation

Posted: 15 Jul 2015 ?? ?Print Version ?Bookmark and Share

Keywords:Toshiba? accounting? personal computer? Gartner?

Toshiba Corp. has announced that no executive resignations have been decided as regards accountancy practices that are under investigation, which is expected to be reported by mid-July. Japanese reports in recent days have said that Norio Sasaki, vice chair of the company's board of directors, and a previous company CEO, is anticipated to resign if the report concludes that Toshiba has been overstating its profits. Toshiba's present president and CEO Hisao Tanaka took office in 2013, succeeding Sasaki.

As a result of the investigation Toshiba is expected to reduce its stated profits by between about $1.4 billion and about $1.6 billion for the five years up to and including the fiscal year that ended March 2014, according to The Nikkei Asian Review, without referencing a source for the information.

The investigation could touch on procurement practices within Toshiba's personal computer business the article added, referencing an unnamed "company insider." The personal computing market has shown little or no growth for a few years and Toshiba is not ranked among the top five vendors by market researchers such as Gartner.

Toshiba recently stated: "The facts and causes of accounting issues are still under investigation by the independent investigation committee, and the company is not currently aware of any matters related to the results of the investigation." Toshiba added: "It is not true that the resignation of any management members, including Norio Sasaki, has been decided."

The announcement went goes on to say that once the committee has presented its report, expected in mid-July, Toshiba will clarify its position with regard to managerial responsibility.

- Peter Clarke
??EE Times Europe

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