Shortening the Useful Lives of Fixed Assets and Asset Retirement Obligations Following Warehouse and Office Lease Terminations
First written in FY2021-Q3. 6 of 7 entries say "Advanced", first in FY2021. Latest entry: FY2026.
2 other companies' latest entry also says "Advanced".
- FY2026AdvancedAnnual report
「Amount of significant asset retirement obligations recognized — ¥106.732 million」
Asset retirement obligations of ¥106.732 million were recognized in connection with the acquisition of new property, plant and equipment. The balance of asset retirement obligations at period-end increased from ¥105.582 million to ¥185.851 million. - FY2025AdvancedAnnual report
「During the current consolidated fiscal year, the company decided to terminate the leases for some warehouses and offices. Accordingly, estimates for asset retirement obligations related to restoration obligations under real estate lease agreements were revised based on newly obtained information. In addition, the useful lives of property, plant and equipment that will become unusable have been shortened and revised prospectively.」
In connection with the termination of the warehouse and office leases, estimates for asset retirement obligations were revised and the useful lives of property, plant and equipment were shortened. This reduced operating income and other items by ¥7.176 million, and the balance of asset retirement obligations at period-end was ¥105.582 million. - FY2024AdvancedAnnual report
「Decrease due to reversal of asset retirement obligations ¥4.167 million Balance at period-end ¥93.523 million」
For asset retirement obligations related to the termination of the warehouse and office leases, a ¥4.167 million decrease due to a reversal was recorded during the current fiscal year, bringing the balance at period-end to ¥93.523 million. - FY2022AdvancedAnnual report
「The main factors behind the decrease were a ¥50 million decrease in long-term borrowings and a ¥92 million decrease in long-term lease liabilities.」
For asset retirement obligations related to the warehouses and offices whose lease termination was decided in the previous fiscal year, expenditures of ¥36.5 million were incurred during the current fiscal year as a result of settlement, indicating that execution of the accounting treatment is progressing. - FY2022-Q2AdvancedAnnual report
「The main factors behind the decrease were ¥36 million in expenditures for the acquisition of property, plant and equipment and ¥36 million in expenditures for the settlement of asset retirement obligations.」
For asset retirement obligations related to the termination of the warehouse and office leases, expenditures of ¥36 million were incurred during the six-month period ended the current second quarter as a result of settlement, indicating that execution of the accounting treatment decided in the previous fiscal year is progressing. - FY2021AdvancedAnnual report
「As a result, compared with the previous method, operating loss, ordinary loss and loss before income taxes for the current consolidated fiscal year have each increased by ¥22.107 million.」
The shortening of the useful lives of assets and the amortization period for asset retirement obligations following the decision to terminate the warehouse and office leases was reflected in the annual results, with the impact amount increasing losses by ¥22.107 million finalized. - FY2021-Q3First statedAnnual report
「During the current third-quarter consolidated accounting period, the company decided to terminate the leases for some warehouses and offices. Accordingly, the useful lives of property, plant and equipment that will become unusable have been shortened and revised prospectively. In addition, for asset retirement obligations related to restoration obligations under real estate lease agreements, the reasonable amortization period has also been shortened and revised prospectively.」
Following the decision to terminate some warehouse and office leases, the useful lives of property, plant and equipment that will become unusable and asset retirement obligations related to restoration obligations have been shortened prospectively.