Period allocation of financing-related costs associated with a large-scale investment project
First written in FY2019-Q1. 2 of 3 entries say "Restated". Latest entry: FY2019.
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- FY2019RestatedAnnual report
「Financing-related costs paid in advance when raising funds from financial institutions and other sources had previously been recognized as expenses in the fiscal year in which they arose. However, as investment projects within the Group's business have grown in scale, the significance of these financing-related costs has increased. Accordingly, from the current consolidated fiscal year, fees that constitute an inseparable part of the effective interest rate are recognized under long-term prepaid expenses within investments and other assets, and expenses are recognized using the effective interest method over the borrowing period, in order to more appropriately reflect their economic substance in the profit or loss of each period.」
The accounting treatment for financing-related costs associated with larger-scale investment projects continues to recognize the costs using the effective interest method over the borrowing period. - FY2019-Q2RestatedAnnual report
「Financing-related costs paid in advance when raising funds from financial institutions and other sources had previously been recognized as expenses in the fiscal year in which they arose. However, as investment projects within the Group's business have grown in scale, the significance of these financing-related costs has increased. Accordingly, from the first quarter of the current consolidated fiscal year, fees that constitute an inseparable part of the effective interest rate are recognized under long-term prepaid expenses within investments and other assets, and expenses are recognized using the effective interest method over the borrowing period, in order to more appropriately reflect their economic substance in the profit or loss of each period.」
The accounting treatment for financing-related costs associated with larger-scale investment projects continues to recognize them as long-term prepaid expenses and expense them over the borrowing period using the effective interest method. - FY2019-Q1First statedAnnual report
「Financing-related costs paid in advance when raising funds from financial institutions and other sources had previously been recognized as expenses in the fiscal year in which they arose. However, as investment projects within the Group's business have grown in scale, the significance of these financing-related costs has increased. Accordingly, from the first quarter of the current consolidated fiscal year, fees that constitute an inseparable part of the effective interest rate are recognized under long-term prepaid expenses within investments and other assets, and expenses are recognized using the effective interest method over the borrowing period, in order to more appropriately reflect their economic substance in the profit or loss of each period.」
As financing-related costs became more significant with the increasing scale of investment projects, the accounting treatment was changed from expensing the costs in full in the year incurred to recording them as long-term prepaid expenses and allocating them over the relevant period using the effective interest method.