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Toshiba awaiting ‘qualified opinion’

Jiji Press TOKYO (Jiji Press) — The auditor of Toshiba Corp. has informed the struggling Japanese electronics and machinery maker of its plan to either issue a so-called “adverse opinion” or “qualified opinion” on Toshiba’s financial statement for fiscal 2016, it was learned Monday.

Toshiba plans to accept the “qualified opinion” audit report on its financial statement for the year that ended in March by PricewaterhouseCoopers Aarata LLC, the auditor, in the face of a Thursday deadline to submit a financial statement for the year, informed sources said.

The draft audit reports were presented to Toshiba last week. The audit opinion has yet to be finalized.

Toshiba and PwC Aarata are in a dispute over when the Japanese company recognized massive losses at its U.S. nuclear business unit, Westinghouse Electric Co., and how the losses should be treated in Toshiba financial statements.

PwC Aarata’s Japanese audit department shows some understanding of Toshiba’s stance, contrary to its U.S. department in charge of auditing Westinghouse.

Depending on the decision by the U.S. department of PwC Aarata, an “adverse opinion” for Toshiba will meet the Tokyo Stock Exchange’s criteria for delisting.

“The ‘adverse opinion’ would be heavy for Toshiba, while the company cannot expect the auditor to issue ‘unqualified opinion’ either,” said an official of a financial institution.

“Toshiba cannot be optimistic about the judgment to be made by U.S. department of PwC Aarata,” sources familiar with the company said.

Toshiba is expected to give a news conference after a board meeting, set for Thursday.Speech

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