Changing Depreciation to the Straight-Line Method in Light of Frozen-Food Manufacturing and Facility-Based Investments
First written in FY2024-Q1. 1 of 2 entries say "Restated". Latest entry: FY2024-Q2.
1 other company's latest entry also says "Restated".
- FY2024-Q2RestatedAnnual report
「As a result of this change, operating income, ordinary income and profit before income taxes for the cumulative second-quarter consolidated period increased by ¥5.807 million each compared with the previous method.」
The change in the depreciation method from the declining-balance method to the straight-line method has continued, with the impact on the cumulative second-quarter period disclosed as ¥5.807 million. There has been no additional change to the accounting policy itself. - FY2024-Q1First statedAnnual report
「Under the medium-term business plan of the Group, the manufacture of frozen foods is identified as a business to be pursued in the future to increase factory utilization, and will commence full-scale operations from the current consolidated fiscal year. Several transactions have been decided, and stable operation of the equipment is expected based on the contracted production volumes. In addition, manufacturing equipment has become more durable in recent years, and the risk of obsolescence is considered low based on that track record, with long-term investment recovery effects expected. Meanwhile, regarding capital investment in the convenience-store business, the Company has shifted from operating conventional roadside stores in a highly competitive environment to opening stores in limited trade areas where stable customer traffic and sales are expected. As the benefits of the investment are expected to accrue evenly, the Company determined that the straight-line method of depreciation would more reasonably reflect the actual pattern of use.」
In light of the commencement of full-scale frozen-food production and the shift toward opening stores in limited trade areas, the Company changed its depreciation method for property, plant and equipment from the declining-balance method to the straight-line method from the current first-quarter consolidated accounting period. As a result of the change, operating income and other items increased by ¥2.853 million compared with the previous method.