Change to the Straight-Line Method for Depreciating Property, Plant and Equipment
First written in FY2025-H1. 1 of 2 entries say "Advanced", first in FY2025. Latest entry: FY2025.
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- FY2025AdvancedAnnual report
「The straight-line method has been applied from the current consolidated fiscal year. ... As a result, compared with the previous method, depreciation expense for the current consolidated fiscal year decreased by ¥98.641 million, while operating income and ordinary income increased by ¥66.057 million and profit before income taxes increased by ¥65.401 million, respectively.」
The depreciation method was changed from the declining-balance method to the straight-line method from FY2025, on the grounds that it better reflects actual use based on the assumption of stable long-term operation. The company also disclosed the specific impact of the change on profit. - FY2025-H1First statedAnnual report
「We had primarily used the declining-balance method to depreciate property, plant and equipment (excluding leased assets), except that the straight-line method was used for buildings acquired on or after 1 April 1998 (excluding building fixtures), and for building fixtures and structures acquired on or after 1 April 2016. From the current interim consolidated accounting period, we have changed to the straight-line method.」
In connection with plans for new capital investments and other measures aimed at reducing CO2 emissions, the depreciation method was changed from the declining-balance method to the straight-line method, based on the assumption that tangible fixed assets would operate stably over the long term, in order to better reflect their actual use.