Japan's Fujifilm Holdings Corp on Monday said it now estimates improper accounting at overseas units to pull down six years worth of net profit by 37.5 billion yen ($340 million), rather than 22 billion yen as flagged in April. The firm said, as a result, Chief Executive Officer Shigetaka Komori and Chief Operating Officer Kenji Sukeno will take a 10 percent pay cut for three months. It also said top executives at subsidiary Fuji Xerox Co Ltd will resign.
The announcements come after a third-party investigation into improper accounting practices used in some transactions at Fuji Xerox New Zealand Limited. Fujifilm said the investigation also found improper accounting at Fuji Xerox Australia Pty Ltd, resulting in the increased financial impact.
The digital camera and photocopier maker said the improper accounting affected profit booked from the year ended March 2011 to the year through March 2016. It said overall impact on earnings for the just-ended year was minor. Fujifilm separately raised its net profit estimate for the last business year to a record 131.5 billion yen from the 112 billion yen started in January, citing gains from share sales.
Shares in Fujifilm ended Monday up 1.6 percent, compared with a 0.5 percent decline in the benchmark Nikkei share price index.