April 6, 2015 / 7:51 AM / 5 years ago

Toshiba shares fall after accounting probe launched

Toshiba Corp President and Chief Executive Officer Hisao Tanaka bows during a news conference after an opening ceremony of the company's Hydrogen Energy R&D Center in Tokyo April 6, 2015. REUTERS/Toru Hanai

TOKYO (Reuters) - Shares in Toshiba Corp fell nearly 5 percent on Monday after the company said it was looking into possible accounting irregularities, its second investigation into its bookkeeping practices in less then two years.

The company said on Friday that it may have underreported the costs of some infrastructure projects in the business year that started in April 2013. It is now looking into whether it adequately spread out the costs of its multi-year projects in its accounts.

Toshiba said it has set up an investigation committee, which will include an external lawyer and accountant, to look into the issue and compile a report in around a month.

The company said it did not know what impact the inquiry could have on its already-reported results.

Toshiba shares fell as much as 10.7 pct to 466.3 yen in early trade on Monday before recovering to close down 4.88 percent at 487.4 yen.

In October 2013 Toshiba announced that it found its medical subsidiary, Toshiba Medical information Systems, had overstated results for several years.

For the 2013 business year, Toshiba’s energy and infrastructure unit reported sales of 1.8 trillion yen, up 11 pct year-on-year, and operating income of 32.3 billion yen, down 62 percent.

Reporting by Ritsuko Ando; Editing by Rachel Armstrong

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