What you need to know
- Apple supplier Japan Display says it will need to review its past earnings following revelations of accounting fraud.
- News just days ago revealed an executive had embezzled $5.3 million over four years.
- An internal investigation has been launched, and now past earnings are under review.
Apple display supplier Japan Display may be in more trouble than previously thought, following news that it is set to review its past earnings in light of revelations that an executive embezzled $5.3 million from the company over the course of four years.
Earlier this month, it was reported that an executive of the company had been fired for embezzling millions of dollars from 2014 to 2018.
Now, according to Reuters the company will review its past earnings in wake of the discovery. No doubt, given the amount of money that went missing, it may be discovered that the company is even worse condition than previously thought.
Last month it emerged that Apple was set to plough $200 million into the ailing display company alongside other investors. The report notes that the company has already launched an internal investigation with its auditors, the results of which will be announced once finalised. Reuters also reports that despite the revelations and subsequent review of the company's earnings, bailout talks with potential investors are set to continue. According to the piece, the maker of the iPhone 11's LCD screen last week posted it's 11th quarterly loss on the trot, compounded by "sluggish display sales and restructuring costs." The company has been losing money for some five years, however with a review of the companies previous filings on the cards, it may transpire that the company has lost even more money than previously suspected.
