Toshiba inflated profits by Y150 bil with top execs' knowledge: report

(Top management was) aware of the overstatement of profits and delay in reporting losses in a corporate culture that “avoided going against superiors’ wishes,”

Time to shake the tree, Japan Inc.

“Within Toshiba, there was a corporate culture in which one could not go against the wishes of superiors,” the report said. This applies not only to Toshiba, but in general within Japan as a whole, not only in industry, but government and even within academia.

I though this only happen in the US and China, guess Japan are no different when it come to money, Money Talk BS Walk.

Toshiba paid more taxes than they were supposed to by falsifying accounts. Will the extra tax money they paid be returned?

Yeah - and how many others are doing this? Seems to be a worrying trend within Japan Inc...

ugh does seem like a trend..this is worrisome.

In other countries this would result in multiple jail terms. Didn't happen with Olympus though. So you have to wonder if it will happen with Toshiba.

This is normal in Japan.

Prepare for theatrical slap on wrist.

Tip of the Japan Inc iceburg

This is NOT surprising at all, after Olympus I said there was no doubt MORE accounting type issues just waiting to surface in J-inc land

And folks, there are still LOTS more, like I have said many times accounting is more like black holes in Japan!

Toshiba President and Chief Executive Hisao Tanaka and his predecessor, Vice Chairman Norio Sasaki, were aware of the overstatement of profits and delay in reporting losses in a corporate culture that “avoided going against superiors’ wishes,” the investigating committee said in a report filed by Toshiba to the Tokyo Stock Exchange.

Like sensenotsocommon said, this is hardly an exception in Japan Inc. I remember when I first went to Japan and was a senior officer with a Japanese subsidiary of a well-known multinational, and the Japanese controller simply turned to the CEO, also Japanese, during our annual planning meeting and asked "What profit do you want to make next year"? Simple as that. No fuss, no muss. Just make the books reflect what the CEO wants.

"Within Toshiba, there was a corporate culture in which one could not go against the wishes of superiors."

Should that no be re written...

Within Japan, there was a culture in which one could not go against the wishes of superiors.

"Sources have said Tanaka and Sasaki would resign in the coming months..."

Quick! We need to set up these great men with new, high-paying positions in similar situations! This is Japan! They canNOT be charged or punished, they must be REWARDED!!

And that's what will happen. Bring on the next scandal.

The overstatement was roughly triple Toshiba’s initial estimate. Sources have said Tanaka and Sasaki would resign in the coming months and most of the board would be replaced to take responsibility for the shortcomings.

He will resign? We are talking about corporate fraud involving billions of dollars! This goon should be drawn and quartered!

in a corporate culture that “avoided going against superiors’ wishes,

Corporate? It's pretty much the same even in politics, just look at the LDP. This attitude has been a part of Japanese culture for centuries, dont go against the leader, do so and you can be expected to slit your belly.

The boss gets caught, same thing. Maybe these two "daimyo" should be put on suicide watch as their fief has been shamed and they must take the blame. (Rather they rot in jail for a few, and take away all their juicy bonus money, and the rest. They arent going to suffer much monetarily, hit them where it hurts!)

Article states: Toshiba President and Chief Executive Hisao Tanaka and his predecessor, Vice Chairman Norio Sasaki, were aware of the overstatement of profits and delay in reporting losses in a corporate culture that “avoided going against superiors’ wishes,” the investigating committee said in a report filed by Toshiba to the Tokyo Stock Exchange. The overstatement was roughly triple Toshiba’s initial estimate. Sources have said Tanaka and Sasaki would resign in the coming months and most of the board would be replaced to take responsibility for the shortcomings.

Is it that easy in Japan to cheat investors? Mr. Tanaka and Mr. Saskai should have a long term in the prison and that is where they belong if you believe in justice. If you remember in 2006, the former chief executive of Computer Associates International, Sanjay Kumar, was sentenced yesterday to 12 years in prison for orchestrating a $2.2 billion accounting fraud at the software company. He was also fined $8 million. Mr. Kumar pleaded guilty to securities fraud and obstruction of justice charges, and faced a maximum sentence of life imprisonment. He inflated the company’s sales figures as well as lying to federal investigators and authorizing a bribe to a potential witness. He repeatedly lied to the Federal Bureau of Investigation and his own lawyers.

'Japan’s 10th-biggest company by assets and market value despite its stock price falling 26% since the scandal surfaced in early April'.....this is billy bonkers by definition. Fraud with a capital F

Toshiba used to get it whites from Roppongi. Japan’s 10th-biggest company by assets and market value despite its stock price falling 26% since the scandal surfaced in early April'.....this is billy bonkers by definition. Fraud with a capital F

Toshiba hides $1.5 billion in losses in months of faulty book keeping? Pffffffzz. Today's WSJ reports Google increased its worth by $65 billion in just one day!