By Jonathan Davies

Toshiba has said its chief executive will resign after it was revealed the company overstated its profits by $1.2 billion over the past six years.

Chief executive and president Hisao Tanaka has already apologised for the scandal, but is now expected he will step down. Chairman Masashi Muromachi is likely to take his place, at least in the interim.

On Monday, an independent panel by Toshiba found that it had overstated its profits by 151.8bn yen ($1.22bn, £780m) over the six year period, more than triple Toshiba's initial estimate.

"Within Toshiba, there was a corporate culture in which one could not go against the wishes of superiors," the report said.

"Therefore, when top management presented 'challenges', division presidents, line managers and employees below them continually carried out inappropriate accounting practices to meet targets in line with the wishes of their superiors."