Toshiba foresees loss after accounting scandal
TOKYO — Japanese energy and electronics giant Toshiba Corp. says it expects to book a loss in the current fiscal year and is beefing up its management standards after an investigation found extensive problems with its accounting and corporate governance.
The company said Tuesday that it plans to add more outside directors to help ensure stricter oversight.
A probe found underreporting of project costs and losses in many divisions in a scandal that prompted the resignations of former company President Hisao Tanaka and two other top executives.
Toshiba has announced plans to revise its earnings by 152 billion yen ($1.2 billion) or more to correct the mistakes.
The management reshuffle calls for Toshiba's chairman and interim president, Masashi Muromachi, to stay on as president. An outside board member will be named chairman.
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