Toshiba Corporation: An analysis on inappropriate accounting practices

First need to describe what happened in the reporting failure, and then determine why it happened. Although there may be cases of outright fraud (i.e. falsified information), these cases are often more likely due to the inappropriate or questionable application of professional judgment. In some cases, the company may have “followed the rules” but still reported information that misled investors. In analyzing these situations, you may have questions about the differences between principles based vs. rules based systems of accounting standards. Ultimately, your paper should come to some conclusions about how the reporting failures could be prevented in the future. These recommendations could be specific to the company or more generalized to the reporting regulations/environment.