Toshiba could face £40m fine for hyping profits

Toshiba is facing fines of ¥7.37 trillion yen (£40 million) as a result of a multimillion-pound accounting scandal.

The Japanese technology giant has admitted to amending its profit reports from April 2009 to March 2015. It is reported as having overestimated its earnings by £867m.

The Securities and Exchange Surveillance Commission in Japan has recommended that the electronics giant should pay the fine and Toshiba has stated that it does not intend to dispute it.

In a statement, the company said it felt “deep remorse” over the scandal and apologised to shareholders, investors and stakeholders for “betraying their trust”.

The company had already set aside an Y8.4 trillion provision and so anticipated “no material impact” on its profits for the fiscal year 2015.

The accountancy scandal involved five of Toshiba’s executives, including former president Hisao Tanaka, which resulted in his resignation from the company last year, along with chief executive Masashi Muromachi.

Since the scandal, Toshiba has seen shares plummet by more than 40 per cent and 50 individual shareholders are seeking damages in a lawsuit filed in Tokyo.