The leasing arm of a Japanese
construction firm has been found to have inflated profits by
underreporting expenses for a period of more than 11
years.
Staff at the auto and leasing
division of Daiwa Lease Co, a subsidiary of Daiwa House,
deliberately used incorrect accounting procedures for automobile
taxes, insurance premiums and other expenses.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
Daiwa House is to record an
extraordinary loss of ¥1.4bn yen (€12m) for the period from April
to December 2010 to account for the shortfall. Its’ earnings
forecast remains unaltered for the full fiscal year to end March
2011.
A total of seven workers are to
be either demoted or to take pay cuts as a result of the discovery.
The leasing unit will move some staff and increase its use of
computers for cost management in order to prevent another such
incident.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
