Change in the method of eliminating unrealized gains and losses on inventories between consolidated companies
First written in FY2026-H1. 2 of 3 entries say "Advanced", first in 2026-05-11. Latest entry: FY2026.
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- FY2026AdvancedAnnual report
「Previously, unrealized gains and losses arising from sales of inventories between consolidated companies were calculated by multiplying the foreign-currency amount obtained by applying the seller's profit margin to the foreign-currency-denominated inventory balance at the purchaser by the exchange rate at the reporting date to convert it into yen. From the current consolidated fiscal year, the method has been changed to calculate the amount by multiplying the seller's selling price by the seller's profit margin.」
The method of eliminating unrealized gains and losses was changed from the current consolidated fiscal year, and the accounting treatment to mitigate the impact of exchange rate fluctuations on profit or loss for the period was applied retrospectively. Merchandise and finished goods and retained earnings for the previous consolidated fiscal year each increased by ¥440 million, while retained earnings at the beginning of the previous fiscal year increased by ¥859 million. - 2026-05-11AdvancedRevisions to earnings forecasts
「This change was made because fluctuations in foreign-exchange rates have had a greater impact, in order to mitigate the impact of temporary foreign-exchange fluctuations on period earnings and other items and to account for unrealized gains and losses at amounts more closely reflecting economic substance.」
The disclosure specified the reasons for changing the method of eliminating unrealized gains and losses on inventories between consolidated companies, and the aim of mitigating the impact of foreign-exchange fluctuations on period earnings. - FY2026-H1First statedAnnual report
「Previously, unrealized gains and losses arising from sales of inventories between consolidated companies were calculated by multiplying the foreign-currency amount obtained by applying the seller's profit margin to the foreign-currency-denominated inventory balance at the purchaser by the exchange rate at the reporting date to convert it into yen. From the current interim consolidated accounting period, the method has been changed to calculate the amount by multiplying the seller's selling price by the seller's profit margin.」
The calculation method was changed to mitigate the impact of exchange rate fluctuations on profit or loss for the period and bring unrealized gains and losses closer to actual conditions. Following retrospective application, retained earnings at the end of the previous consolidated fiscal year increased by ¥440 million, and the balance at the beginning of the previous fiscal year increased by ¥859 million.