Change in hedge accounting method for foreign exchange forwards in response to raw material price and exchange rate fluctuations
First written in FY2024-Q1. . Latest entry: FY2024.
2 other companies' latest entry also says "Other".
- FY2024The revised hedge accounting treatment was reflected in the full-year financial statementsAnnual report
「Previously, the Company applied the designation method to forward exchange transactions relating to foreign-currency-denominated receivables and payables that met the requirements for that treatment. As it reconsidered its company-wide risk management methods in response to changes in the external environment, including fluctuations in raw material prices and exchange rates, it reviewed its management method for forward exchange contracts and changed to deferred hedge accounting from the current consolidated fiscal year.」
The change from the designation method to deferred hedge accounting following a review of the management method for forward exchange contracts was reflected in the full-year consolidated and non-consolidated financial statements, and the retrospective adjustment impact on profit and loss and other items for the previous consolidated fiscal year was disclosed. - FY2024-Q3Retrospective adjustment impact for the third quarter of the previous year disclosedAnnual report
「In the consolidated income statement for the cumulative third quarter of the previous fiscal year, cost of sales decreased by ¥204 million, while gross profit and operating profit each increased by ¥204 million. In addition, foreign exchange gains decreased by ¥422 million, while ordinary profit and profit before income taxes for the quarter each decreased by ¥217 million.」
The Company disclosed the retrospective adjustment impact of the change to deferred hedge accounting on cost of sales, operating profit, foreign exchange gains, ordinary profit and other items for the cumulative third quarter of the previous year. - FY2024-Q2Retrospective adjustment impact disclosedAnnual report
「In the consolidated income statement for the cumulative second quarter of the previous fiscal year, cost of sales decreased by ¥108 million, while gross profit and operating profit each increased by ¥108 million. In addition, foreign exchange gains decreased by ¥310 million, while ordinary profit and profit before income taxes for the quarter each decreased by ¥201 million.」
The Company disclosed specific amounts of the retrospective adjustment impact of the change to deferred hedge accounting from the first quarter on cost of sales, operating profit, foreign exchange gains and ordinary profit for the same period of the previous year. - FY2024-Q1First statedAnnual report
「Previously, the Company applied the designation method to forward exchange transactions relating to foreign-currency-denominated receivables and payables that met the requirements for that treatment. As it reconsidered its company-wide risk management methods in response to changes in the external environment, including fluctuations in raw material prices and exchange rates, it reviewed its management method for forward exchange contracts and changed to deferred hedge accounting from the first quarter of the current consolidated fiscal year.」
Following a reconsideration of company-wide risk management methods in response to changes in the external environment, the Company changed the accounting treatment for forward exchange contracts from the designation method to deferred hedge accounting.