Expansion of the scope of the special repair reserve and reflection of interim inspection costs
First written in FY2024-Q1. 2 of 3 entries say "Restated". Latest entry: FY2024-Q3.
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- FY2024-Q3RestatedAnnual report
「In connection with the formulation of the new medium-term management plan, "The Adventure to Our Sustainable Future," which commenced in April 2023 and covers the period from April 2023 to March 2026, the Group reviewed its future vessel-use plans and major repair plans. As a result, it determined that intermediate inspections had become more important and changed its policy for recognizing provisions for special repairs, which had previously covered only periodic inspection costs, to include intermediate inspection costs, except for certain vessels, from the first quarter of the fiscal year.」
It continues to describe the accounting policy of expanding the scope of the special repair provision to include intermediate inspection costs. It discloses that, after retrospective application, cost of sales for the cumulative third quarter of the previous fiscal year increased by ¥127 million. - FY2024-Q2RestatedAnnual report
「In connection with the formulation of the new medium-term management plan, "The Adventure to Our Sustainable Future," which commenced in April 2023 and covers the period from April 2023 to March 2026, the Group reviewed its future vessel-use plans and major repair plans. As a result, it determined that intermediate inspections had become more important and changed its policy for recognizing provisions for special repairs, which had previously covered only periodic inspection costs, to include intermediate inspection costs, except for certain vessels, from the first quarter of the fiscal year.」
It continues to describe the accounting policy of expanding the scope of the special repair provision to include intermediate inspection costs. Retrospective application increased cost of sales for the second quarter of the previous fiscal year by ¥67 million and reduced retained earnings at the beginning of the previous fiscal year by ¥808 million. - FY2024-Q1First statedAnnual report
「In connection with the formulation of the new medium-term management plan, "The Adventure to Our Sustainable Future," which commenced in April 2023 and covers the period from April 2023 to March 2026, the Group reviewed its future vessel-use plans and major repair plans. As a result, it determined that intermediate inspections had become more important and changed its policy for recognizing provisions for special repairs, which had previously covered only periodic inspection costs, to include intermediate inspection costs, except for certain vessels, from the first quarter of the current fiscal year. As a result, compared with before the retrospective application, cost of sales for the first quarter of the previous fiscal year increased by ¥58 million, while operating income, ordinary income and profit before income taxes for the quarter each decreased by the same amount. In addition, the cumulative effect reflected in net assets at the beginning of the previous consolidated fiscal year reduced the opening balance of retained earnings by ¥808 million.」
Following a review of vessel-use plans and major repair plans, the Group expanded the scope of its special repair provision from periodic inspection costs alone to include intermediate inspection costs for all but certain vessels. It states that retrospective application increased cost of sales for the first quarter of the previous fiscal year by ¥58 million and reduced retained earnings at the beginning of the previous fiscal year by ¥808 million.