Toshiba’s shares, which plunged after the company’s disclosure of accounting irregularities this spring, bounced back 6% on Tuesday to ¥399.9.
The amount of overstated profit is close to the $1.7 billion in losses that another Japanese company, Olympus Corp., concealed in a scandal that came to light in 2011. Yet Toshiba is a larger company and analysts say it isn’t likely the governance crisis will cause deeper financial troubles. The planned markdown is small compared with the ¥976.4 billion operating profit the company earned from fiscal 2008 through the third quarter of fiscal 2014.