Toshiba shares jumped on Monday after a report that the firm will sign off on its annual financial results after months of being at odds with the embattled conglomerate, a step that would lessen, but not remove, the risk of a delisting.
For Toshiba, which was downgraded to the second section of the Tokyo bourse this month, a loss of its status as a listed company would further thwart its ability to increase money, particularly for the investment-intensive chip business that it is trying to sell.
Toshiba’s Auditor, PwC
Since taking over as Toshiba's auditor in June last year, PricewaterhouseCoopers Aarata (PwC) has yet to endorse the firm's financial results which have suffered numerous delays.
A major sticking point has been an inquiry from PwC over whether Toshiba should have recognized multi-billion dollar losses at U.S. nuclear arm Westinghouse earlier than last December, sources familiar with the matter have said.
PwC will either issue a so-called "opinion without qualifications," given where there are no problems in a company's accounts or an "opinion with qualifications", given where only minor problems exist by a bourse-imposed deadline on Thursday, the business daily said, without citing sources. However, it could also still issue an “adverse opinion.”
Toshiba has entered discussions with the auditor, seeking to gain an opinion with qualifications.
Neither report stated the reasoning behind a possible endorsement from PwC. PwC and Toshiba declined to comment.
Memory Chip Sale
An auditor endorsement may remove one less headache for Toshiba as it seeks to close the memory chip unit deal that has stalled due to disagreements between members of the main bidding groups. Toshiba will, however, still be automatically delisted if it ends the current year with negative shareholders' equity.
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