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Toshiba scandal: digging into the numbers

Toshiba is making headlines over intentional inflation of profits. But its accounts should have raised significant red flags on closer inspection.

Both the Toshiba (above) and Olympus cases involved improper accounting procedures, but whereas Toshiba executives had the intention of inflating profits to meet expectations, Olympus executives wanted to hide losses.

"PLEASE buy me one million shares of Toshiba, ticker code: 6502." That was the institutional buy order that kick-started my professional buy-side career. The first stock I bought was Toshiba Corp, back in July 1995.

Toshiba was a blue chip listed on the Tokyo stock exchange and a