Accounting Fraud at Fujifilm $140 Million Bigger Than Initially Thought,

By:
Chris Gaetano
Published Date:
Jun 13, 2017
lies

Japanese firm Fujifilm Holdings Corp said that a third party investigation found even more accounting fraud than was originally reported in April, ballooning its expected $199,976,480 adjustment to $340,962,000, according to Reuters. Initially it was discovered that Fiju Xerox New Zealand, guided by financial incentives, encouraged its management and staff to book sales earlier than standard practice, which had the effect of bumping up income. The company was forced to revise its estimate upward when the investigation discovered similar practices happening at Fuji Xerox Australia. Firm leaders noted that Fuji Xerox is a joint venture and so was afforded more independence than the company's other branches. Fujifilm said the accounting issue affected profit booked from the year through March 2011 to the year ended March 2016, according to Reuters. The affair combines two major issues that have been affecting Japanese businesses over the years: accounting fraud and governance issues. Toshiba and Olympus both went through costly scandals involving accounting fraud, while governance issues were blamed for the recalls at Toyota and Takata, according to Reuters. 

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