Toshiba accounting scandal
According to Nikkei, Toshiba made mistakes in managing the warehouse stocks of discrete semiconductors which are used in a wide range of electronics.
In 2012, Toshiba restructured resulting in the closure of three chip manufacturing enterprises. But before that, the company increased production to maintain uninterrupted supply.
However, demand was low, and unrealized products accumulated. In such cases, the cost of inventories should be written off. Toshiba, hoping for a rise in demand, did not do this. Inaction has led to an overstatement of profit data.
Later investigators found direct evidence of inappropriate accounting practices and overstated profits in multiple Toshiba business units, including the visual products unit, the PC unit and the semiconductor unit.
Due to miscalculations in estimating the cost of some infrastructure projects, Toshiba announced a donwardly revised review of data on operating profit for the three-year period from 2011 to 2013.