Toshiba may be fined 7.4 billion yen for accounting scandal

Toshiba is facing a fine of around 55 million euros from the Japanese financial markets authority. This is the result of the accounting scandal that came out in April this year. The Japanese company had over-stated the results for seven years.

The profit was presented too rosy due to the exaggeration of the turnover figures. In seven years, Toshiba earned 115 billion yen less than proposed, about 862 million euros. The scandal has caused Toshiba stock to lose about 40 percent since the shady practices first came to light in April.

Kiyotaka Sasaki, secretary general of the Security and Exchange Surveillance Commission SESC in Japan, said at a meeting that the impact of the incident is significant, Reuters news agency reported. The SESC has taken a new approach to investigating the scandal. Toshiba was one of the first Japanese companies to put together a board based on the American example, something that should have led to more transparency.

Toshiba has set aside some 8.4 billion yen or 63 million euros to cover fines and other consequences of the scandal. It is not yet known whether the former CEOs will be prosecuted.