Inventory Valuation Management Based on Net Realizable Value and Long-Held Inventory
First written in FY2023. 1 of 2 entries say "Restated". Latest entry: FY2024.
The whole theme swung hardest in 2018: 3 of 7 companies on the "Worse" side.
4 other companies' latest entry also says "Restated".
- FY2024RestatedAnnual report
「When the net realizable value of inventories falls below their carrying amount, the carrying amount is reduced to the net realizable value, and the reduction is recorded as an inventory valuation loss in cost of sales. Inventories that have fallen outside the normal operating cycle are deemed to be long-outstanding inventory once a specified period has elapsed from the fiscal year-end date. An inventory valuation loss is recorded in cost of sales by multiplying the acquisition cost at the valuation date by a write-down rate set according to the length of time the inventory has remained outstanding.」
The company continues to use management methods involving valuation at net realizable value, identification of long-outstanding inventory and recognition of valuation losses using write-down rates based on the period outstanding. - FY2023First statedAnnual report
「When the net realizable value of inventories falls below their carrying amount, the carrying amount is reduced to the net realizable value, and the reduction is recorded as an inventory valuation loss in cost of sales. Inventories that have fallen outside the normal operating cycle are deemed to be long-outstanding inventory once a specified period has elapsed from the fiscal year-end date. An inventory valuation loss is recorded in cost of sales by multiplying the acquisition cost at the valuation date by a write-down rate set according to the length of time the inventory has remained outstanding.」
The company disclosed for the first time specific estimation and management methods for inventories, including valuation at net realizable value, identification of long-outstanding inventory and recognition of valuation losses using write-down rates based on the period outstanding.