Toshiba's $1.2 Billion Accounting Fraud Explained

From 2011 through 2014 the Japanese technology conglomerate Toshiba engaged in a sophisticated accounting fraud that saw it book $1.2 billion worth of fake profits. In this video we go over how this fraud took place and how it was finally exposed.

Check out our second channel, The Economic Outlook:

#WallStreetMillenial

[davidjma]

I am a Marketing Director with 35 yrs MNC experience. People think Marketing types are we've got nothing on the Accounting profession! They wave a hand according to GAAP and expenses get capitalised and/or minimised in a flash! One tried to even capitalise the cost of advertising production!

[stjojokaras]

Toshiba is known as the first NoteBook PC (called Dynabook) manufacturer in the world in 1980's. Toshiba gave away Dynabooks to many software vendors in Japan, including my software company. Good old days.

[michaelmoses]

Every company seems to engage in fraud these days. I wonder how many are not caught as of yet.

[maxsanchez-financeproducti]

It's insane how many great quality videos you're pumping out every single day. Keep em coming!

[seanwieland]

2:08 I’d forgotten about SED. It was supposed to be the best of CRT brightness and sharpness while still flat like LCD or plasma displays.

[luvadougla]

All of this fraud but they just getaway with a resignation 😐😐😐😐😐😐

[ChosenOne]

Toshiba was banned 1987 in the United states for selling sophisticated machinery to the Soviet Union that allowed Moscow to make its submarines quiet enough to avoid detection.

[MikaylaRose]

So this is why I never see Toshiba laptops anymore.

[xxmyyoursxx]

Keep up the content loving it and have recommended to many friends

[fasthandsz]

4:35 couldn’t stop laughing at his expression

[luckyjayakody]

Man, its hard to find a clean business these days. It seems many businesses have at least one dark secret being discussed in their closed board rooms.

[xr.spedtech]

Well, their hard-drive products was decent I respected them for that ....

[billschannel]

In this video I first mistakenly heard the fraud was for one million, not 1 billion. And my immediate thought was "What? Did someone at Toshiba forget to turn off the lights when they went home?"

[mrrolandlawrence]

I worked at a japenese bank where they over valued things like desktop computers. adding a few hundred percent to the value. this helped in an overly high valuation of the business...

[marklawes]

No one faced charges. That is what sickens me every time.

[prabinneupane]

My first laptop was Toshiba satellite and would buy more if only they made new
.
Rip TOSHIBA Laptops

[CornellSandifer]

That old wise tale will always be true "Stand for something or you'll fall for anything"

[thirdunderwood]

We had three of those exact Toshiba cathode Ray TVs when I was growing up

[londondisc]

Very explanatory videos. However you place all the blame on the directors and nothing on the auditors. Yes, the directors are responsible for preparing the accounts by the same principle Auditors are responsible for checking them. Auditors state their audit is not meant to disclose a fraud however not to such a huge scale. In my time as a senior executive in a number of companies and dealing with auditors, I came to the conclusion that an audited report gave credibility to the accounts where None existed. I later discovered the reason for this however I will not go into this as a short note on Youtube. Many commentators blame Chinese for not having proper Audited accounts etc. however the system in the West is far worse, unimaginable really.

[kkent]

I remember working as a vendor for a few tech companies. 2015ish or so they made a comeback with laptops. Bright back satellites looked nice. But they kept getting returned. One day I went into all my locations and all Toshiba products were pulled. I see there TVs here and there.