Refinement of Estimates for Repair Losses on Warrantied Retail Vehicles
First written in FY2018-Q3. 1 of 2 entries say "Restated". Latest entry: FY2018.
The whole theme swung hardest in 2019: 6 of 30 companies on the "Worse" side.
11 other companies' latest entry also says "Restated".
- FY2018RestatedAnnual report
「Through the previous fiscal year, the company had recognized a provision for product warranties based on historical results for estimated warranty amounts over the warranty period, to provide for losses from repairs to warranted retail vehicles. However, it changed the estimate from the current fiscal year because more precise estimates became possible based on historical results for repair costs and the duration of warranty coverage. As a result, compared with the previous method, cost of sales for the current fiscal year decreased by ¥364 million, while operating income, ordinary income and profit before income taxes for the fiscal year each increased by the same amount.」
The refined warranty estimates were also applied in the annual results, reducing cost of sales by ¥364 million and increasing each profit measure by the same amount. - FY2018-Q3First statedAnnual report
「To provide for losses from repairs to warranted retail vehicles, the company had recognized an estimated warranty amount for the warranty period based on historical results. However, it changed the estimate because more precise estimates became possible based on historical results for repair costs and the duration of warranty coverage. As a result, compared with the previous method, cost of sales for the nine-month cumulative consolidated period of the current fiscal year decreased by ¥350 million, while operating income, ordinary income and profit before income taxes and other adjustments for the quarter each increased by the same amount.」
The company refined its warranty estimates using historical results for repair costs and the duration of warranty coverage, reducing cost of sales by ¥350 million and increasing operating income, ordinary income and profit before income taxes and other adjustments by the same amount.