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O'Sullivan noted the acquisition in December 2015 coincided with the finalising of a record fine by Japanese regulators for accounting irregularities at Toshiba, indicating that corporate governance controls were extremely weak. "This will come as an additional shock to Toshiba's institutional investors that may further undermine confidence in company management, as well as significantly weakening its international nuclear credentials," said Tom O'Sullivan, founder of energy consultancy Mathyos Japan. Toshiba's latest writedown would be another slap in the face for a sprawling conglomerate hoping to recover from a $US1.3-billion accounting scandal, as well as a writedown of more than $US2 billion for its nuclear business in the last financial year. Toshiba President Satoshi Tsunakawa bows as he arrives for the news conference to announce the latest setback. Toshiba's announcement came as its Westinghouse Electric Company subsidiary is engaged in a legal and accounting row with CB&I, which has argued in court that it expected a relatively small payment from Westinghouse of only $US161 million ($224 million) when the deal closed on the understanding that the latter was taking on a challenged business.

The Japanese group said cost overruns at US power projects handled by the CB&I Stone & Webster Inc business it acquired last December from Chicago Bridge & Iron Company NV (CB&I) would be much greater than initially expected, potentially requiring a huge writedown.

Toshiba Corp said it may have to book several billion dollars in charges related to a US nuclear power plant construction company acquisition, sending its stock tumbling 12 per cent and rekindling concerns about its accounting acumen. The writedown would be another slap in the face for a sprawling conglomerate hoping to recover from an accounting scandal and a $US2-billion-plus writedown for its nuclear business.