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Toshiba reports earnings

Toshiba has met a deadline to report its long-awaited earnings results, reducing the risk that the firm will be delisted from the Tokyo Stock Exchange.

The embattled electronics firm posted a loss of $8.8bn (£6.7bn) for the last fiscal year.

Auditor PricewaterhouseCoopers Aarata gave a “qualified opinion” on the financial statements, meaning it broadly endorsed the results.

Toshiba has struggled to recover from a 2015 accounting scandal.

The firm’s troubles started in 2015 when it was found to have inflated the previous seven years’ profits by $1.2bn.

The accounting scandal led to the resignation of several members of the firm’s senior management, including the chief executive.

In late 2016, billions of dollars in losses at its US nuclear unit Westinghouse were first revealed. Toshiba, looking to diversify away from consumer electronics, had bought the business in 2006.

Its financial troubles deepened after delays and costs overruns at two US reactors, and as global appetite for nuclear energy waned following the 2011 Fukushima disaster in Japan.

PricewaterhouseCoopers Aarata on Thursday delivered a “qualified opinion” on the earnings for the year to March, as well as the April-June quarter.

That means it broadly vouched for its accounting despite finding minor problems.

The company was demoted from the first tier of the exchange in June after confirming its liabilities outweighed its assets.

If Toshiba reports negative net worth – liabilities exceeding assets – for a second consecutive year it would likely prompt a delisting.

While auditors PricewaterhouseCoopers Aarata have broadly endorsed the results, there are reports that PwC also issued an “adverse opinion” on Toshiba saying the company didn’t do enough to alert investors about the losses at its US Westinghouse unit soon enough. Toshiba says that it reported the losses as soon as it could.

But the risk hasn’t gone away. Another deadline still looms – the company has until March 2018 to resolve its debt issues.

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