Japanese manufacturer Oki Systems has uncovered an accounting error at its Spanish subsidiary which could result in a loss of about 8bn yen (£65m) and will delay the release of its first-quarter financial results.

In a statement, the company said its Madrid-based unit, Oki Systems Iberica, had overstated accounts. As a result, the firm said it would miss the August 14 financial reporting deadline for the Tokyo Stock Exchange, by a month.

Oki has established an 'external investigative committee' of outside experts to look into the matter and effect preventative measures. The committee members include an accountant from PwC, as well as lawyers.

The company says initial investigations at its overseas consolidated subsidiary in Spain (OSIB) suggest that the OSIB managing director 'had conducted improper accounting by excessive posting of accounts receivable'. These actions may also have an impact on past financial year results, as well as the estimated 8bn yen (£65m) loss.

The company's shares plunged 34% on news of the discovery of accounting irregularities.

Earlier this year another Japanese manufacturer, Olympus, was fined 10m yen (£820,000) after it admitted to a 13-year accounting fraud.

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