FY2025-H1First statedAnnual report
「Previously, non-deductible consumption tax and other taxes relating to assets were recognized as period expenses in selling, general and administrative expenses in the consolidated fiscal year in which they arose. However, from the beginning of the current interim consolidated accounting period, we changed to a method of including them in the acquisition cost of the individual assets. Given the challenging environment facing the taxi industry, including the chronic shortage of taxi drivers in recent years and the lifting of the ban on ride-sharing, we intend to strengthen our real estate business, particularly our residential rental apartment business, in order to build a robust management structure capable of withstanding any environment. As a result, the number of transactions involving the acquisition of residential rental properties is expected to increase. Accordingly, from the consolidated fiscal year in which we focus on the real estate business onward, we believe it is more reasonable and provides a more appropriate representation of the operating realities of our group to include non-deductible consumption tax and other taxes relating to assets in the acquisition cost of the individual assets and allocate the expense over the useful lives of the fixed assets, rather than using the previous method and expensing a large, non-recurring amount of non-deductible consumption tax and other taxes in the year of acquisition.」
Against the backdrop of plans to strengthen the residential rental apartment business and the expected increase in acquisition transactions, we changed the accounting policy for non-deductible consumption tax and other taxes from expensing them over the period to including them in the acquisition cost of assets and allocating the expense over their useful lives. The new policy was applied from the beginning of the current interim consolidated accounting period.