FY2022-Q3First statedAnnual report
「Previously, nondeductible consumption taxes and other amounts related to assets were recognized as selling, general and administrative expenses as period costs in the consolidated fiscal year in which they arose. From the current third-quarter consolidated accounting period, we changed the method to include them in the acquisition cost of each asset. Previously, consolidated subsidiaries that were principally engaged in acquiring residential rental buildings and were tax-exempt entities included the equivalent consumption taxes and other amounts related to the assets in the acquisition cost of each asset. As the number of transactions in which residential rental buildings were acquired by consolidated subsidiaries that were taxable entities increased, we determined that having those subsidiaries also include nondeductible consumption taxes and other amounts related to assets in the acquisition cost of each asset, as tax-exempt subsidiaries did, was more reasonable for appropriately determining income and expenses by period.」
The treatment of nondeductible consumption taxes and other amounts was changed from recognition as period costs to inclusion in the acquisition cost of assets. The change was made because acquisitions of residential rental buildings by consolidated subsidiaries that are taxable entities increased. Operating profit and other figures increased by ¥64.853 million as a result, but the change was not applied retrospectively because its impact was immaterial.