Change in the depreciation method for buildings to the straight-line method following completion of the head office building
First written in FY2021-Q1. 1 of 4 entries say "Restated". Latest entry: FY2021.
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- FY2021Updated to full-year cumulative impactAnnual report
「As a result of this change, depreciation expenses for the current consolidated fiscal year decreased compared with the previous method, increasing ordinary income and net income before income taxes and other adjustments by ¥961 million each.」
The impact of changing the depreciation method for buildings from the declining-balance method to the straight-line method was updated to an increase of ¥961 million in full-year ordinary income and net income before income taxes and other adjustments. - FY2021-Q3Cumulative Impact UpdatedAnnual report
「Previously, the Bank and its consolidated subsidiaries used the declining-balance method to depreciate buildings, but changed to the straight-line method from the first quarter of the current consolidated fiscal year. Following a review of the depreciation method for buildings in light of the 14th Medium-Term Management Plan, “NEXT STEP 2023: Connecting to and Going Beyond the Future,” launched in the current fiscal year, and the completion of the head office building, we determined that the straight-line method, which allocates costs evenly over the useful life of the buildings, more appropriately reflects the actual circumstances of management in periodic earnings, because the buildings are used over the long term and in a stable manner, and their value in use declines at a broadly constant rate over their useful lives. As a result of this change, depreciation expenses for the cumulative first 3 quarters of the current consolidated fiscal year decreased compared with the previous method, increasing ordinary income and quarterly net income before income taxes and other adjustments by ¥495 million each.」
The company reiterated its policy of changing the depreciation method for buildings from the declining-balance method to the straight-line method, and stated that the impact on ordinary income and quarterly net income before income taxes and other adjustments for the cumulative first 3 quarters was ¥495 million. - FY2021-Q2RestatedAnnual report
「Previously, the Bank and its consolidated subsidiaries primarily used the declining-balance method to depreciate buildings, but changed to the straight-line method from the current interim consolidated accounting period. Following a review of the depreciation method for buildings in light of the 14th Medium-Term Management Plan, “NEXT STEP 2023: Connecting to and Going Beyond the Future,” launched in the current fiscal year, and the scheduled completion of the head office building during the current fiscal year, we determined that the straight-line method, which allocates costs evenly over the useful life of the buildings, more appropriately reflects the actual circumstances of management in periodic earnings, because the buildings are used over the long term and in a stable manner, and their value in use declines at a broadly constant rate over their useful lives. As a result of this change, depreciation expenses for the current interim consolidated accounting period decreased compared with the previous method, increasing ordinary income and interim net income before income taxes and other adjustments by ¥253 million each.」
The company reiterated its policy of changing the depreciation method for buildings from the declining-balance method to the straight-line method, and stated that the impact on ordinary income and interim net income before income taxes and other adjustments for the current interim consolidated accounting period was ¥253 million. - FY2021-Q1First statedAnnual report
「Previously, the Bank and its consolidated subsidiaries used the declining-balance method to depreciate buildings, but changed to the straight-line method from the first quarter of the current consolidated fiscal year. Following a review of the depreciation method for buildings in light of the 14th Medium-Term Management Plan, “NEXT STEP 2023: Connecting to and Going Beyond the Future,” launched in the current fiscal year, and the scheduled completion of the head office building during the current fiscal year, we determined that the straight-line method, which allocates costs evenly over the useful life of the buildings, more appropriately reflects the actual circumstances of management in periodic earnings, because the buildings are used over the long term and in a stable manner, and their value in use declines at a broadly constant rate over their useful lives. As a result of this change, depreciation expenses for the cumulative first quarter of the current consolidated fiscal year decreased compared with the previous method, increasing ordinary income and quarterly net income before income taxes and other adjustments by ¥125 million each.」
The depreciation method for buildings was changed from the declining-balance method to the straight-line method. Following completion of the head office building and the 14th Medium-Term Management Plan, the impact on ordinary income and quarterly net income before income taxes and other adjustments for the first quarter was an increase of ¥125 million.