Toshiba expands probe into accounting irregularities in several projects

Toshiba Corp. said Friday it will expand the scope of an independent investigation into the its accounting practices.

The probe will cover Toshiba’s television, personal computer and semiconductor operations, in addition to its infrastructure business.

Toshiba launched an independent investigation panel on May 15, following the revelation of accounting flaws in nine infrastructure projects, including those for smart electricity meters.

The company’s decision to expand the probe came as the panel detected possible indications of accounting irregularities such as for the booking of TV sales promotion costs and the assessment of semiconductor product inventories, Toshiba said.

The company has estimated that the accounting flaws in the infrastructure projects will force it to revise down its group operating profits for the three years through March 2014 by some ¥50 billion.

But after the expansion of the probe, the firm is now bracing for a larger profit reduction, Toshiba officials said.

The probe is expected to cover a five-year period that started in April 2010. The panel is expected to report its investigation results in late June or July.

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