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Toshiba has established an Independent Investigation Committee to look at the situation.
The company has shown an average annual growth of only 2% for the past decade.
It recently exited the TV and mobile phone markets.
Toshiba says the accounting irregularities relate to ‘infrastructure businesses’ which may mean the tech businesses are unaffected.
The announcement (in translation) begins:
In the course of the investigation by the Special Investigation Committee to date, instances have been identified in some infrastructure – related projects in which the percentage-of-completion method of accounting was used, wherein the total amount of contract cost was underestimated and contract losses (including provisions for contract loss) were not recorded in a timely manner . Instances have also been identified other than in projects in which the percentage-of-completion method of accounting was used that require further investigation . As a result, it is expected that more time will be required in order to conduct a detailed investigation into the facts and to identify the causes.
