Change to the Straight-Line Method for Depreciating Building Fixtures and Structures
First written in FY2017-Q3. 4 of 6 entries say "Advanced", first in FY2017. Latest entry: FY2019.
The whole theme swung hardest in 2024: 3 of 17 companies on the "Worse" side.
5 other companies' latest entry also says "Advanced".
- FY2019AdvancedAnnual report
「Previously, the company and its domestic consolidated subsidiaries used the declining-balance method to depreciate property, plant and equipment, excluding buildings acquired on or after 1 April 1998, other than building improvements, and building improvements and structures acquired on or after 1 April 2016. However, from the consolidated fiscal year, the depreciation method was changed to the straight-line method. As a result, compared with the previous method, depreciation expense decreased by ¥500 million, and operating income, ordinary income and net income before income taxes for the consolidated fiscal year each increased by ¥494 million.」
The change to the straight-line method was applied for the full year, resulting in a ¥500 million decrease in depreciation expense and a ¥494 million increase in each of operating income, ordinary income and net income before income taxes. - FY2019-Q3AdvancedAnnual report
「As a result, compared with the previous method, depreciation expense decreased by ¥339 million, and operating income, ordinary income and quarterly net income before income taxes for the nine months ended 31 December each increased by ¥339 million.」
The impact on income for the nine months ended 31 December from the change to the straight-line method was specified as ¥339 million, up from ¥200 million for the six months ended 30 September. - FY2019-Q2AdvancedAnnual report
「As a result, compared with the previous method, depreciation expense decreased by ¥200 million, and operating income, ordinary income and net income before income taxes for the six months ended 30 September each increased by ¥200 million. The impact of this change on each segment is stated in the relevant section.」
For the change to the straight-line method made from the first quarter, the impact for the six months ended 30 September was specified as ¥200 million, with the impact on segment income shown as ¥105 million for the Asphalt Applied Processing Products business, ¥92 million for the Road Paving business and ¥2 million for Other. - FY2019-Q1ReframedAnnual report
「Previously, the company and its domestic consolidated subsidiaries used the declining-balance method to depreciate property, plant and equipment, excluding buildings acquired on or after 1 April 1998, other than building improvements, and building improvements and structures acquired on or after 1 April 2016. However, from the first quarter of the current consolidated fiscal year, the depreciation method was changed to the straight-line method. This change was made because, following a review of the use of property, plant and equipment prompted by the expansion of production facilities and other measures under the medium-term management plan, the company determined that the straight-line method, which allocates costs evenly over the assets' useful lives, would more appropriately reflect the group's actual circumstances, as the assets are expected to operate stably over the long term. As a result, compared with the previous method, depreciation expense decreased by ¥97 million, and operating loss, ordinary loss and net loss before income taxes for the three months ended 30 June each decreased by ¥97 million.」
The scope of assets subject to the change to the straight-line depreciation method was expanded from the previously covered building improvements and structures to property, plant and equipment as a whole, resulting in a ¥97 million decrease in depreciation expense and each of the losses. - FY2017AdvancedAnnual report
「Following the revision of the Corporation Tax Act, the company applied the Practical Solution on Changes in Depreciation Methods Related to the FY2016 Tax Reform (Practical Response Report No. 32, 17 June 2016) for the consolidated fiscal year and changed the depreciation method for building improvements and structures acquired on or after 1 April 2016 from the declining-balance method to the straight-line method. As a result, operating income, ordinary income and net income before income taxes for the consolidated fiscal year each increased by ¥37 million.」
The change made from the first quarter was applied for the full year, with the impact on operating income, ordinary income and net income before income taxes specified as ¥37 million in each case. - FY2017-Q3First statedAnnual report
「Following the revision of the Corporation Tax Act, the company applied the Practical Solution on Changes in Depreciation Methods Related to the FY2016 Tax Reform (Practical Response Report No. 32, 17 June 2016) from the beginning of the first quarter of the consolidated fiscal year and changed the depreciation method for building improvements and structures acquired on or after 1 April 2016 from the declining-balance method to the straight-line method. As a result, the impact on operating income, ordinary income and quarterly net income before income taxes for the nine months ended 31 December of the current fiscal year was immaterial.」
The depreciation method for building fixtures and structures acquired on or after 1 April 2016 was changed from the declining-balance method to the straight-line method. The impact on profit or loss was described as immaterial.