Komori
Argo Graphics (7595) · PolicyFirst stated

Change in depreciation method accompanying the full-scale launch of managed services

First written in FY2027-H1. . Latest entry: FY2027-H1.

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Change in depreciation method for servers and other equipment triggered by the managed services business entering full-scale operationA theme 1 companies write about · 0 as a headwind · 1 as a tailwind

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  1. FY2027-H1First statedAnnual report

    「The group had previously used mainly the declining-balance method to depreciate tools, furniture and fixtures and other assets within property, plant and equipment, but changed primarily to the straight-line method from the current interim consolidated accounting period.」

    As managed services entered full-scale operation, the company determined that the actual use of servers and other equipment and the consumption of their economic benefits would be broadly even throughout the period, and changed the depreciation method for tools, furniture and fixtures and other assets from the declining-balance method primarily to the straight-line method. As a result of the change, depreciation expense for the interim period decreased by ¥113.316 million, while operating profit, ordinary profit and interim profit before income taxes increased by the same amount.
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