Toshiba boss steps down over $1bn accounting scandal
Profits were knowingly overstated
Toshiba is counting the cost of overstating its financial results, and has announced that chief executive Hisao Tanaka will step down over the scandal.
News of the overstated financials came from an independent report saying that the firm had invented an extra $1bn in revenues over the past few years.
Toshiba has apologised to investors, customers and the market for the misleading financial reporting.
"Toshiba Corporation expresses sincere apologies to our shareholders, customers, business partners and all other stakeholders for any concern or inconvenience caused by the investigation into the appropriateness of its accounting," the company said in a statement on its website.
"We received the investigation report from the Independent Investigation Committee on July 20 2015. The company takes the content of the report very seriously. We reiterate our deep apology to our shareholders, investors and all other stakeholders."
Toshiba said that it will adjust previous financial reports accordingly, and will "renew" the firm's commitment to its "original management policy" that placed an emphasis on compliance.
"Going forward, we will renew our commitment to our original management policy, which puts the highest priority on human life, safety and compliance, and reorganise our corporate governance structure and internal control system. We will also promptly examine measures to prevent recurrence and will implement them thoroughly," the firm added.
"Toshiba Corporation and its group as a whole will make our best effort to regain the trust of our stakeholders, and asks for your ongoing support."
Reuters reported that chief executive and president Tanaka will step down with immediate effect, as will Toshiba vice chairman Norio Sasaki. Chairman Masashi Muromachi will take on the chief executive role.
Toshiba announced late last year that it was respositioning itself to focus on the business PC market, and shedding some 900 jobs in the process.
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