JDI May Have Overvalued LCD Inventories by 10 B. Yen

Economy

Tokyo, Dec. 25 (Jiji Press)--Japan Display Inc. <6740> has said that it will set up a third-party panel to investigate alleged inappropriate accounting at the struggling maker of small and midsize liquid crystal display panels.

The move, announced Tuesday, comes on the heels of allegations that the company overvalued its LCD panel inventories by a total of some 10 billion yen over several years.

While the end date of the inquiry has not been set, the company will delay announcing its consolidated earnings for April-December if the panel does not arrive at a conclusion by Feb. 13, 2020, when the financial statement for the first three quarters of fiscal 2019 is currently slated to be released.

The period in which the suspected overvaluation took place has not been revealed, but the company said it has already been corrected.

The issue came to light after JDI board members and lawyers carried out an investigation following an accusation by a late former JDI executive in November.

[Copyright The Jiji Press, Ltd.]

Jiji Press