Toshiba president Hisao Tanaka and his predecessor Norio Sasaki are stepping down after a $US1.2 billion ($A1.63 billion) accounting scandal news. The scandal was reported by experts a result of overzealous pursuit of profit.

Overall, eight high-level executives and directors at the sprawling conglomerate stepped down from their respective positions on Tuesday. It was learnt from an independent report that senior management complicit existed in a years-long scheme to pad profits.

The report by a company-hired panel confirmed the involvement of managers in systematically inflating profits over several years. The panel said in a stinging indictment that it was one of the most damaging accounting scandals that has hit Japan in recent years.

“It has been revealed there has been inappropriate accounting going on for a long time, and we deeply apologise for causing this serious trouble for shareholders and other stakeholders”, said a company statement.

The company said that the involvement in the scandal is the reason behind the resignations of company’s PresidentHisao Tanaka, and Vice ChairmanNorio Sasaki.

Tanaka, 64, and Sasaki, 66, both started working for Toshiba in early 70’s. Chairman Masashi Muromachi has been named by the company as its interim President.

According to a summary released by the firm late on Monday, the trust of many stakeholders was betrayed due to systematic carry out of inappropriate accounting by management decisions.

Toshiba, a multi-national electronics and information technology conglomerate, went through accounting troubles that became visible in April. The resignations were expected due to involvement of management in the scandal.