03292017Wed
Last updateFri, 24 Mar 2017 12pm

 

Toshiba overstates profits by £780m

The chief executive of Toshiba will resign following irregularities with the company accounts.

CEO Hiso Tanaka will be replaced by chairman Masashi Muromachi following revelations that Toshiba has overstated profits for the past six years. 

On Monday, an independent panel appointed by Toshiba said the firm had overstated operating profit by £780m, triple the initial Toshiba estimate.

In a statement to the media, the company said: "It has been revealed that there has been inappropriate accounting going on for a long time, and we deeply apologise for causing this serious trouble for shareholders and other stakeholders."

"Because of this Hisao Tanaka, our company president, and Norio Sasaki, our company's vice chairman... will resign today."

Tanaka will be succeeded by chairman Masashi Muromachi.

Concerns about Toshiba’s accounts began earlier this year after industry regulators uncovered problems while examining the company’s balance sheets.

Toshiba must restate its profits for April 2008 and March 2014.

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