Change in the Depreciation Method for Tangible Fixed Assets from the Declining-Balance Method to the Straight-Line Method
First written in FY2021-Q1. . Latest entry: FY2021-Q3.
0 other companies' latest entry also says "Other".
- FY2021-Q3Nine-month impact of depreciation expense: ¥168 millionAnnual report
「As a result, compared with the previous method, depreciation expense for the nine months ended the third quarter decreased by ¥168 million, while operating profit, ordinary profit and profit before income taxes each increased by ¥168 million.」
The impact for the nine months ended the third quarter of changing from the declining-balance method to the straight-line method was a ¥168 million decrease in depreciation expense and a ¥168 million increase in each of operating profit and related items. - FY2021-Q2Six-month impact of depreciation expense: ¥90 millionAnnual report
「As a result, compared with the previous method, depreciation expense for the six months ended the second quarter decreased by ¥90 million, while operating profit, ordinary profit and profit before income taxes each increased by ¥90 million.」
The impact for the six months ended the second quarter of changing from the declining-balance method to the straight-line method was a ¥90 million decrease in depreciation expense and a ¥90 million increase in each of operating profit, ordinary profit and profit before income taxes. - FY2021-Q1First statedAnnual report
「The company had primarily used the declining-balance method to depreciate its tangible fixed assets, excluding leased assets and right-of-use assets, but changed to the straight-line method from the first quarter of the current consolidated fiscal year. The depreciation method was reconsidered in connection with substantial capital investment under a product strategy focused on high-value-added products and products expected to generate stable, long-term earnings. As the equipment has been operating steadily, the company determined that allocating depreciation expense evenly over the useful lives of the assets would be more appropriate and changed to the straight-line method. As a result, compared with the previous method, depreciation expense for the nine months ended the first quarter decreased by ¥44 million, while operating profit, ordinary profit and profit before income taxes each increased by ¥44 million.」
From the first quarter, the company changed the depreciation method for tangible fixed assets from the declining-balance method to the straight-line method. Against the backdrop of its product strategy focused on high-value-added products and substantial capital investment, the impact on depreciation expense and operating profit and other items was ¥44 million each.