Increase in liabilities due to a change in the estimate of asset-retirement obligations

「Due to this change in estimates, asset retirement obligations and the property, plant and equipment recorded concurrently with the asset retirement obligations decreased by ¥57.328 million each.」

「As a result of this change in estimates, for certain properties where the method prescribed in Paragraph 9 of the “Accounting Standard for Asset Retirement Obligations: Guidance on Accounting Standard for Asset Retirement Obligations” (the “simplified treatment”) had previously been used, the estimated restoration costs exceeded the security deposits and guarantee deposits under the relevant contracts, making it impossible to continue using the simplified treatment. Accordingly, the accounting treatment for these properties was changed to the general treatment from the end of the fiscal year. As a result, asset retirement obligations under fixed liabilities increased by ¥1,227.971 million in the balance sheet for the fiscal year due to the change in accounting estimates, while security deposits and guarantee deposits under investments and other assets increased by ¥156.008 million due to the change in accounting treatment from the simplified treatment to the general treatment.」