Ethics 304 Assignment Paper: Toshiba Accounting Case

Toshiba Accounting Case
[Student’s name]
Accounting Finance, SPSS
[Institutional affiliations]
Toshiba Accounting Case
The Toshiba accounting case is the chosen one for this paper and it will give an explanation why the company is being charged for a large fine. Despite of it being an established company, it was mandatory to apologize to investors because of their reported 10.6 billion yen loss or 80 million euros. There is an ethical explanation behind this and that is the objective of this paper. It is important that ethics should be followed in a company to avoid cases like this.
The scandal begins when there is a peculiarity in the accounting done in Olympus. The mistake is a blow to the efforts of the government to convince global investors to Japan that comes with polished corporate governance, as well as better management for shareholders (Rueters, 2015). The financial watchdog of Japan gave a deadline of February 25 for them to pay the fine (The Japan Times, 2015).
In the past, there were 50 individual shareholders of Toshiba that filed a case against Tokyo conglomerates because they were looking for 301.99 million yen worth of damages because of the stocks that were lost. It was decided upon by the FSA that Toshiba needs to fabricate their financial statements for fiscal year 2011 and 2012, and also documents linked to the issuance of corporate bonds by the Japanese conglomerate (The Japan Times, 2015). The conglomerates that are part of the case is given an order to pay for a record fine because of the accounting scandal. The Tokyo Stock Exchange imposed a total penalty of 91.2 million yen or 660,000 euros (Euronews, 2015).
It is the country’s Financial Services Agency that needs to receive approval for the recommended fine because of the allegations saying that Toshiba was not transparent about its finances during the early filings in the stock exchange. The recommendations given are because of the investigations that were only about the false statements that Toshiba mistakenly said. The accounting scandal is so mangled that it led to the resignation of top executives and incumbent president. The Toshiba Company that offers products like rice cookers and nuclear reactors already claimed that it had an increase in profit by approximately $1.2 billion since the global financial crisis in 2008 occurred. Today, the regulators of securities is doing an analysis if the former executives of Toshiba should be faced with criminal charges (Presse, 2007).
Toshiba resulted to job cuts and steps for recruitment because of its business that prosper, they need to recover from the accounting scandal, which has caused changes that amounts to 224.8 billion yen on pretax for almost 7 years.
There have been poor oversight that made Toshiba less prestigious because when the scandal happened, there were only 4 out of the 16 members and the non-executives were recognized as outsiders. Due to the resignation of executives, it caused a low point...