Changing the Depreciation Method for Property, Plant and Equipment from Declining-Balance to Straight-Line
First written in FY2021-Q1. 3 of 4 entries say "Advanced", first in FY2021-Q2. Latest entry: FY2021.
No other company in this theme has enough history to compare yet.
- FY2021AdvancedAnnual report
「As a result, depreciation expense decreased during the current consolidated fiscal year, increasing operating profit by ¥411 million and ordinary profit and profit before income taxes and other adjustments by ¥481 million each.」
The change from the declining-balance method to the straight-line method was applied for the full fiscal year, increasing operating profit by ¥411 million and ordinary profit and profit before income taxes and other adjustments by ¥481 million each. - FY2021-Q3AdvancedAnnual report
「As a result, depreciation expense decreased during the nine months ended the third quarter of the current consolidated fiscal year, increasing operating profit by ¥296 million and ordinary profit and profit before income taxes and other adjustments by ¥347 million each.」
The change from the declining-balance method to the straight-line method continued to be applied, increasing operating profit by ¥296 million and ordinary profit and profit before income taxes and other adjustments by ¥347 million each for the nine months ended the third quarter. - FY2021-Q2AdvancedAnnual report
「The Company and certain consolidated subsidiaries had previously used primarily the declining-balance method for depreciating property, plant and equipment, excluding leased assets, but changed to the straight-line method from the first quarter of the current consolidated fiscal year. Following a review of the actual use of property, plant and equipment, we determined that the straight-line method more appropriately represents our financial position and operating results because the assets are expected to operate stably over the long term and make a stable contribution to earnings. As a result, depreciation expense decreased during the six months ended the second quarter of the current consolidated fiscal year, increasing operating profit by ¥190 million and ordinary profit and profit before income taxes and other adjustments by ¥226 million each.」
The change from the declining-balance method to the straight-line method continued to be applied, increasing operating profit by ¥190 million and ordinary profit and profit before income taxes and other adjustments by ¥226 million each for the six months ended the second quarter. - FY2021-Q1First statedAnnual report
「The Company and certain consolidated subsidiaries had previously used primarily the declining-balance method for depreciating property, plant and equipment, excluding leased assets, but changed to the straight-line method from the first quarter of the current consolidated fiscal year.」
In light of the planned full-scale operation of the Takasago Thermal Engineering Innovation Center and the expected strengthening of capital investment and stock-based businesses, the actual use of the assets was reviewed and the method was changed from the declining-balance method to the straight-line method. As a result of the change, depreciation expense decreased, reducing operating loss by ¥75 million and ordinary loss and loss before income taxes and other adjustments for the quarter by ¥93 million each.