Change to the Straight-Line Method for Depreciating Property, Plant and Equipment
First written in FY2021-Q3. 1 of 2 entries say "Achieved", first in FY2021. Latest entry: FY2021.
1 other company's latest entry also says "Achieved".
- FY2021AchievedAnnual report
「As a result, compared with the previous method, operating income for the current consolidated fiscal year increased by ¥235.257 million, ordinary income by ¥236.580 million, and profit before income taxes and other adjustments by ¥237.283 million.」
The change in the depreciation method from the declining-balance method to the straight-line method was applied for the full fiscal year, and the impact of the change on profit was disclosed. - FY2021-Q3First statedAnnual report
「The Company and its consolidated subsidiaries had previously mainly used the declining-balance method for depreciating property, plant and equipment, excluding lease assets, but changed to the straight-line method from the first quarter of the current consolidated fiscal year. This change was made because the new plant, BEIKA Lab, was completed during the current consolidated fiscal year and preparations for increased production were put in place. Following a review of the depreciation method for business facilities, the Company determined that allocating costs evenly using the straight-line method would more appropriately reflect actual conditions, since production equipment and other assets have a low risk of technological obsolescence and are expected to be used stably over their useful lives. Compared with the previous method, operating income for the cumulative third quarter of the current consolidated fiscal year increased by ¥157.709 million, ordinary income by ¥158.571 million, and profit before income taxes and other adjustments by ¥158.318 million.」
In conjunction with the completion of the new plant and preparations for increased production, the depreciation method for property, plant and equipment was changed from the declining-balance method to the straight-line method. Compared with the previous method, operating income for the cumulative third quarter of the current fiscal year increased by ¥157.709 million, ordinary income by ¥158.571 million, and profit before income taxes and other adjustments by ¥158.318 million.