Toshiba Goes Down Speedily in a Year When Its Accounting Investigation Revealed
The Toshiba Corporation Accounting Report in Bloomberg revealed a lot of accounting problems, due to this the sales of company is falling speedily in more than a year. The company needs a committee that will find out the possible problems in the company accounting.
Toshiba is a maker of electronic, chips, nuclear reactors and appliances that drops its sales 4.9 % in the month of January and in Tokyo close at 487 yen.
For some accounting projects, Toshiba will shape a platform to inspect the “level-headedness of approximation” when applying accounting methods, it decided after the market closed in Friday. The statement of Tokyo based company showed that the effect on earning has not been expected.
The analyst at SMBC Nikko Securities Nikko Securities, named Yukihiko Shimada said, “The declaration does not present us a fine impression of Toshiba. A doubtful environment will create about the reliability of the accounting performance.”
Due to great company social infrastructure, and power, Toshiba took hold on about 11 percent of operating income of business in the April 1, 2013. But now the company admitted that the investigation will take about a month to go through the problems.
“In the month of March, a routine accounting survey determined that some matter of accounting process that are very important for the completion of work required urgently to be reconsidered,’ said by Toshiba spokeswoman Naomi Furuya.
She refused to give some more details about this issue.