Change to the straight-line method for depreciating property, plant and equipment
First written in FY2019-Q1. 2 of 4 entries say "Advanced", first in FY2019-Q2. Latest entry: FY2019.
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- FY2019AdvancedAnnual report
「The depreciation method previously used by the Company and its domestic consolidated subsidiaries for property, plant and equipment was primarily the declining-balance method for assets other than buildings, excluding building fixtures. This was changed to the straight-line method on 1 April 2018. ... Compared with the previous method, this change reduced cost of sales by ¥15,945 million and selling, general and administrative expenses by ¥2,746 million. As a result, business profit and profit before tax increased by ¥18,692 million each.」
The straight-line method was applied for the full year, and the Company disclosed an impact of ¥18,692 million on business profit and profit before tax for the fiscal year. - FY2019-Q3RestatedAnnual report
「The depreciation method previously used by the Company and its domestic consolidated subsidiaries for property, plant and equipment was primarily the declining-balance method for assets other than buildings, excluding building fixtures. This was changed to the straight-line method on 1 April 2018. In light of recent initiatives to improve the business structure and the resulting stable operation of the Group's property, plant and equipment generally within their useful lives, the Company determined that the straight-line method was more appropriate for systematically allocating the cash outflows arising from asset acquisitions to expenses over the assets' useful lives. Compared with the previous method, this change reduced cost of sales by ¥11,465 million and selling, general and administrative expenses by ¥2,294 million. As a result, business profit and profit before tax for the quarter increased by ¥13,759 million each.」
The Company reconfirmed the application of the straight-line method from 1 April 2018, the reasons for the change and its ¥13,759 million impact on business profit and profit before tax for the third quarter cumulative period. - FY2019-Q2AdvancedAnnual report
「The depreciation method previously used by the Company and its domestic consolidated subsidiaries for property, plant and equipment was primarily the declining-balance method for assets other than buildings, excluding building fixtures. This was changed to the straight-line method on 1 April 2018. In light of recent initiatives to improve the business structure and the resulting stable operation of the Group's property, plant and equipment generally within their useful lives, the Company determined that the straight-line method was more appropriate for systematically allocating the cash outflows arising from asset acquisitions to expenses over the assets' useful lives. Compared with the previous method, this change reduced cost of sales by ¥7,289 million and selling, general and administrative expenses by ¥1,508 million. As a result, business profit and profit before tax for the quarter increased by ¥8,798 million each.」
The Company specified the reasons for and impact of changing from the declining-balance method to the straight-line method. The change was applied from 1 April 2018 and increased business profit and profit before tax for the current second quarter cumulative period by ¥8,798 million each. - FY2019-Q1First statedAnnual report
「The depreciation method previously used by the Company and its domestic consolidated subsidiaries for property, plant and equipment was primarily the declining-balance method for assets other than buildings, excluding building fixtures. This was changed to the straight-line method on 1 April 2018.」
In light of the stable operation of property, plant and equipment within their useful lives following improvements to the business structure, the depreciation method was changed to the straight-line method on 1 April 2018. As a result of the change, business profit and profit before tax for the quarter each increased by ¥4,011 million.