Fuji Xerox's chairman resigns over 'improper accounting'
Premature recognition of sales in Australia and New Zealand drags down whole company
FujiXerox has apologised for what it calls “improper accounting” that saw its Australian and New Zealand operations book sales earlier than was usual, resulting in inflated sales figures.
The company's apology says, after machine translation, that an independent committee has examined the books of the two subsidiaries and settled their accounts correctly. The result is a ¥37.5 billion (US$341m) adjustment to six years' net profits. The probe found that local management encouraged the practice.
Recognition of revenue won by FujiFilm and counted on Fuji Xerox's books was the source of the problem.
Company chair Tadahito Yamamoto will resign over the affair, as will three other senior execs, necessitating an executive reshuffle detailed here. Surviving senior execs will have their pay packets lightened to reflect their role in the affair.