Sony Corp, the world's biggest consumer electronics maker, said today it does not engage in any questionable accounting practices.
Earlier, Sony shares fell more than four per cent to end the day at 5,560 yen, hit by a recent media report raising questions over accounting practices at Sony, widely considered one of Japan's most conscientious firms in financial disclosure.
"Sony regrets that rumours are circulating that have no foundation in fact. Sony does not engage in questionable accounting practices," a Sony spokesman said.
Share traders said the market was concerned by a July 15th report in the South China Morning Postthat former accounting professor Mr Howard Schilit, who testified before the US Congress in the Enron scandal, had flagged potential problems in Sony's books.
The Hong Kong-based daily said Mr Schilit's Centre for Financial Research and Analysis (CFRA) found Sony's sales to affiliated companies jumped 133 per cent to 72.8 billion yen ($628 million) in the business year to March 31st and suggested Sony may have boosted profits by drawing down reserves established in prior years.
"We will strongly contest any such allegations if they are raised by CFRA," the Sony spokesman said.
He said Sony has not yet seen any report by or been contacted by CFRA. It had only seen the media report, he said.