Toshiba finally files earnings - but auditors won't sign them off after Westinghouse debacle

Toshiba Acquires Westinghouse
Toshiba owns troubled US nuclear firm Westinghouse (Source: Getty)

Toshiba finally filed its eagerly-awaited quarterly earnings this morning, without the sign-off of its auditors, and warned the future of the company is at risk.

Its failure to get a sign-off from its auditors, PwC Aarata, is likely to usher in further scrutiny from Japanese financial regulators and the Tokyo Stock Exchange.

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Toshiba has twice failed to file its results for the three months to December as beancounters trawl through books of Westinghouse Electric, its US nuclear subsidiary.

Westinghouse is fighting for its existence after being hammered by massive cost overruns. Sources familiar with the situation told Reuters it was not just the last three months the auditors were probing but the financial year stretching back to March 2016.

For the nine months from April to December 2016, the firm made a loss of $4.8bn (£3.9bn). Toshiba said it booked a 716.6bn yen (£5.2bn) impairment charge on its nuclear business.

"There are material events and conditions that raise the substantial doubt abut the company's ability to continue as a going concern," Toshiba said in a statement.

Chief executive Satoshi Tsunakawa said at a press briefing the group will do its "utmost" to avoid a stock exchange delisting.

Overnight, reports surfaced that Toshiba might file its return with a partial thumbs-up from PwC Aarata in the hope regulators accept them.

Read more: Toshiba's Westinghouse has filed for bankruptcy

However, if watchdogs reject the sign-off, Toshiba will have a further eight days to re-file or run the risk of being de-listed from the Tokyo Stock Exchange.

"There are various possibilities... It's possible [the auditors] could say the results are appropriate, give limited approval or reserve their opinion," a source told Reuters.

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