Preparing for the Application of IFRS 16 Leases

「The Group has applied IFRS 16, 'Leases' (published in January 2016; hereinafter, the standard), from the beginning of the current first quarter of the consolidated fiscal year. In accordance with the transitional provisions, the Group applied the standard retrospectively and recognised the cumulative effect at the date of initial application as an adjustment to the opening balance of retained earnings for the current first quarter of the consolidated fiscal year. At the date of initial application, the Group additionally recognised right-of-use assets of ¥13,697 million, investment property of ¥111 million, deferred tax assets of ¥364 million and lease liabilities of ¥16,160 million, while recognising decreases of ¥1,971 million in retained earnings and ¥18 million in non-controlling interests.」

「The Group plans to apply IFRS 16 using the modified retrospective approach. Accordingly, comparative information will not be restated, and the cumulative effect of applying IFRS 16 will be recognised as an adjustment to the opening balance of retained earnings as of 1 April 2019. As a result, on the date of application, 1 April 2019, assets are estimated to increase by ¥13,981 million, liabilities by ¥16,392 million, and equity (retained earnings) to decrease by ¥2,411 million.」