Change in Depreciation Method for Building Fixtures and Structures Due to Tax Reform
First written in FY2017-Q3. 1 of 3 entries say "Restated". Latest entry: FY2025-H1.
Shinagawa Refra moved to the "Worse" side of this theme in 2024, the same year as the typical company in this theme.
The whole theme swung hardest in 2024: 3 of 17 companies on the "Worse" side.
3 other companies' latest entry also says "Reframed".
- FY2025-H1ReframedAnnual report
「From the current interim consolidated fiscal period, the straight-line method has been adopted for other assets. As a result, compared with the previous method, operating profit, ordinary profit and interim net income before income taxes and other adjustments for the current interim consolidated fiscal period increased by ¥155 million, respectively.」
The change in the depreciation method was expanded beyond certain assets affected by the tax reform to include other tangible fixed assets, which were changed from the declining-balance method to the straight-line method. The stated reason for the change is the expected long-term stable operation of equipment following the completion of production lines at the Ako plant and other developments. - FY2018RestatedAnnual report
「The straight-line method is applied to building fixtures and structures acquired on or after 1 April 2016, while the declining-balance method is applied to other assets.」
The company has reiterated its accounting policy of applying the straight-line method to building fixtures and structures acquired on or after 1 April 2016, following the tax reform. - FY2017-Q3First statedAnnual report
「Following amendments to the Corporation Tax Act, we applied the Practical Solution on Changes in Depreciation Methods Related to the 2016 Tax Reform (Practical Solution No. 32, 17 June 2016) from the first quarter of the fiscal year and changed the depreciation method for building fixtures and structures acquired on or after 1 April 2016 from the declining-balance method to the straight-line method.」
For building fixtures and structures acquired on or after 1 April 2016, the depreciation method was changed from the declining-balance method to the straight-line method. The company states that the impact of the change on profit or loss for the nine-month period of the consolidated fiscal year was immaterial.