FY2027-H1First statedAnnual report
「Certain domestic subsidiaries had previously depreciated property, plant and equipment primarily using the declining-balance method, 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. From the current interim consolidated accounting period, however, the depreciation method for all property, plant and equipment has been changed to the straight-line method. This change was made because, following the comprehensive organizational restructuring of our group, we reviewed the depreciation method for property, plant and equipment from the perspective of standardizing group accounting policies and determined that adopting the straight-line method was reasonable and would more appropriately reflect the group's actual management conditions, as stable operations are expected to continue and depreciation was therefore considered to be consistent over time. As a result of this change, depreciation expense for the current interim consolidated accounting period decreased by ¥140 million compared with the previous method, and operating profit, ordinary profit and interim profit before income taxes each increased by ¥140 million.」
Following the comprehensive organizational restructuring, the depreciation method for property, plant and equipment across the group, including domestic subsidiaries, was standardized to the straight-line method. As a result, operating profit and other earnings each increased by ¥140 million for the interim period.