PracticeAuditJapanese firm in £1bn accounting scandal

Japanese firm in £1bn accounting scandal

Japanese cosmetics company Kanebo admits to declaring £1bn of false profits

Japan has been hit by one of its biggest accounting scandals after cosmetics company Kanebo admitted it had booked £1bn of fictitious profits in its accounts.

The company is now planning to file criminal complaints against former management and will sue for damages, The Times reports.

The details emerged when Kanebo released corrected financial reports, where it was revealed that the company had hidden a negative net worth from 1995 to 2003 by inflating sales and under-reporting expenses.

The Tokyo Stock Exchange suggested it may review the company’s listing in the wake of the scandal and Kanebo shares plummeted 13% to reach a four-month low.

Related Articles

PwC replaces EY as Domino's auditor

Audit PwC replaces EY as Domino's auditor

1d Alia Shoaib, Reporter
The ‘uncomfortable truth’ behind FRC’s Big Four fines recommendations

Audit The ‘uncomfortable truth’ behind FRC’s Big Four fines recommendations

1w Carl Johnson, Stephensons
BDO holds off Big Four to retain top position as AIM auditor

Audit BDO holds off Big Four to retain top position as AIM auditor

1w Alia Shoaib, Reporter
FRC urged to fine Big Four firms penalties over £10m

Audit FRC urged to fine Big Four firms penalties over £10m

3w Alia Shoaib, Reporter
EY to audit Standard Chartered bank

Audit EY to audit Standard Chartered bank

1m Alia Shoaib, Reporter
KPMG replaces PwC as Croda auditor

Accounting Firms KPMG replaces PwC as Croda auditor

2m Emma Smith, Managing Editor
EY fined £1.8m over Tech Data audit

Accounting Standards EY fined £1.8m over Tech Data audit

2m Emma Smith, Managing Editor
Top 50+50: Firms post significant growth in new tax and audit rankings

Audit Top 50+50: Firms post significant growth in new tax and audit rankings

2m Emma Smith, Managing Editor