Changing the Depreciation Method for Property, Plant and Equipment to the Straight-Line Method
First written in FY2021-Q1. . Latest entry: FY2021.
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- FY2021Update to full-year adoption impactAnnual report
「As a result of this change, compared with the previous method, the operating loss for the consolidated fiscal year under review decreased by ¥1,017 million, the ordinary loss by ¥1,025 million and the loss before income taxes and other adjustments by ¥1,040 million.」
The full-year profit and loss impact was disclosed for the change to the straight-line method against the backdrop of the strategic shift toward stable earnings centered on existing stores. - FY2021-Q3Third-quarter impact amount updatedAnnual report
「As a result of this change, compared with the previous method, the operating loss for the nine months of the consolidated fiscal year under review decreased by ¥760 million, the ordinary loss by ¥766 million and the loss before income taxes and other adjustments by ¥782 million.」
The profit and loss impact for the nine months was updated for the change to the straight-line method against the backdrop of the strategic shift toward stable earnings centered on existing stores. - FY2021-Q2Updated Impact of ApplicationAnnual report
「As a result of this change, compared with the previous method, the operating loss for the six months of the consolidated fiscal year under review decreased by ¥503 million, the ordinary loss by ¥507 million and the loss before income taxes and other adjustments by ¥523 million.」
The profit and loss impact for the six months was updated for the change to the straight-line method against the backdrop of the shift to an earnings strategy centered on existing stores. - FY2021-Q1First statedAnnual report
「The Company is reviewing its management strategy, which previously focused on aggressive new store openings, and is shifting to a strategy aimed at generating stable earnings centered on existing stores. As a result of reviewing the depreciation method for property, plant and equipment, the Company has determined that spreading depreciation expense evenly over the assets' useful lives reasonably reflects its economic substance and will therefore change to the straight-line method.」
Against the backdrop of the shift to an earnings strategy centered on existing stores, the depreciation method for property, plant and equipment was changed to the straight-line method effective 1 April 2020. As a result of the change, the operating loss decreased by ¥243 million, the ordinary loss by ¥245 million and the loss before income taxes and other adjustments by ¥261 million.