Application of Disclosure Standards for Accounting Estimates
First written in FY2021. . Latest entry: FY2023.
- FY2023Change in inventory valuation methodAnnual report
「The Company and certain consolidated subsidiaries had measured inventory at an amount estimated to reflect the decline in profitability based on sales plans derived from demand forecasts and used that amount as the carrying amount on the consolidated balance sheet. However, in light of inventory holdings and sales performance against a backdrop of soaring raw material prices and changes in the demand environment, among other factors, the Company changed its method in the current fiscal year to uniformly write down the carrying amounts of inventories that have exceeded a specified turnover period based on past sales performance, so that the decline in profitability would be more appropriately reflected in its financial position and operating results.」
The method was changed from the previous method based on demand forecasts to one that uniformly writes down inventories exceeding a specified turnover period based on past sales performance. - FY2021First statedAnnual report
「We applied the Accounting Standard for Disclosure of Accounting Estimates (Accounting Standard No. 31, 31 March 2020) from the consolidated financial statements for the year-end of the current consolidated fiscal year and included notes on significant accounting estimates.」
The disclosure standard for accounting estimates was applied from the end of the current fiscal year, and notes on significant accounting estimates have been newly included.