Fictitious Transactions Found at Toshiba Subsidiary

Economy

Tokyo, Jan. 18 (Jiji Press)--Toshiba Corp. <6502> said Saturday that fictitious sales worth about 20 billion yen were found to have been booked by consolidated subsidiary Toshiba IT-Services Corp. in April-September last year.

The parent will eliminate the amount fictitiously reported by the subsidiary based in Kawasaki, Kanagawa Prefecture, from its consolidated earnings for October-December 2019.

The parent is investigating the whole picture of the irregularities and their impact on its balance sheet.

Corporate governance at Toshiba, whose high-profile accounting scandal was revealed only in 2015, is expected to be called into question again with the latest discovery of irregularities within its group, pundits said.

According to Toshiba, the company received information from outside around the end of November 2019 that fictitious transactions may have been conducted over multiple years. The irregularities at Toshiba IT-Services were confirmed through an in-house investigation joined by lawyers and certified accountants.

[Copyright The Jiji Press, Ltd.]

Jiji Press