#Performance target pressure
This topic collects cases where profit targets or business-plan expectations influenced accounting treatment or operational decisions.
Two passages to compare
- Note 01 · Toshiba Corporation：A week after being told to redo the plan, JPY 12 billion of improvement was demanded with three days left
A proposal to improve operating profit by ¥8 billion on September 20, 2012 was sent back. The September 27 demand for a ¥12 billion improvement required a report the next day.
Investigation Report (official English translation) p.252, 261 - Note 02 · Nidec Corporation：Some companies kept a 'for-show' plan for headquarters and a separate 'real' plan for running the business
The committee found that companies with dual plans shared the head-office version only among executives, sometimes presenting measures they did not intend to implement as under consideration.
Investigation Report (Final Report) p.89-90
Carillion collapse. A hospital contract showed a 12.7% loss in peer review, while management used a 4.9% profit margin
Standard supplier terms were 120 days
12 notesThe Robodebt report: PwC’s “Final Report” became the “not-report”
A legal answer described as a strong no
10 notesWorldCom accounting fraud. Hundreds of millions passed on Post-it Notes
“do not discuss issues in writing”
12 notesNidec’s accounting misconduct. An Excel file built around JPY 580 million said “The number of people is arbitrary”
A “for-show” plan and a “real” plan
12 notesToshiba's inappropriate accounting practices
JPY 12 billion of improvement was demanded with three days left in the quarter
12 notes