Toshiba admits its future is ‘in doubt’ after finally declaring unapproved financial report

Troubles at Toshiba continue to mount, despite the firm finally declaring its delayed earning’s report. The Japanese conglomerate has reported a loss of $4.8 billion, some three months after the report was initially due. However, the results have not been approved by the company’s auditors and Toshiba has warned that its future is ‘in doubt’.

"There are material events and conditions that raise substantial doubt about the company’s ability to continue as a going concern," the company said in a statement. "At the present time, substantial doubt about the company’s ability to continue as a going concern exists as of the filing date of the quarterly report."

The loss reported is for the first nine months of Toshiba’s financial year, covering April to December 2016. The firm’s auditors, PriceWaterhouseCooper Aarata, have refused to sign off the company’s accounts, resulting in their publication being delayed. However, Toshiba has taken the unprecendted step of publishing them regardless, most probably to keep potential investors interested.

Talking about the unapproved report, company president Satoshi Tsnunakawa apologised for the ‘truly regrettable’ situation. The initial report was due in February, before Toshiba missed its rescheduled date in March. The fact that the report is unapproved adds to the possibility that Toshiba could be delisted from the Tokyo Stock Exchange.

Toshiba’s financial woes are largely connected to its failed nuclear unit Westinghouse. Acquired in 2006, an ill-advised purchase in 2015 has led to massive scandal and loses for its parent company. Last month Westinghouse filed for a Chapter 11 bankruptcy and Toshiba is attempting to split from the company. Since revealing its financial turmoil a number of investors have shown an interest in Toshiba’s technology businesses. Many suitors have tabled offers to invest in the firm’s profitable chip manufacturing business, while earlier this week Turkish company Vestel confirmed it was in talks with Toshiba over acquiring its iconic TV business.

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