Change in presentation of depreciation expense on rental assets to cost of sales
First written in FY2024-Q1. 3 of 4 entries say "Advanced", first in FY2024-Q2. Latest entry: FY2024.
1 other company's latest entry also says "Advanced".
- FY2024AdvancedAnnual report
「Previously, some depreciation expense for rental assets was recognized under “selling, general and administrative expenses,” but from the current consolidated fiscal year it has been included in “cost of sales.” This reflects a change in cost management methods to better reflect the substance of the business, under which all rental assets are defined as being held for rental business activities and all depreciation expense for rental assets is recognized in the cost of rental revenue.」
The change to present depreciation expense on rental assets in cost of sales was applied for the full fiscal year, and ¥627 million in prior-year depreciation expense was reclassified. - FY2024-Q3AdvancedAnnual report
「Previously, some depreciation expense for rental assets was recognized under “selling, general and administrative expenses,” but from the cumulative first quarter it has been included in “cost of sales.” This reflects a change in cost management methods to better reflect the substance of the business, under which all rental assets are defined as being held for rental business activities and all depreciation expense for rental assets is recognized in the cost of rental revenue. To reflect this change in presentation, the quarterly consolidated statements of income for the cumulative third quarter of the previous fiscal year have been reclassified. As a result of reclassifying ¥463 million in depreciation expense recorded under “selling, general and administrative expenses” in the cumulative third quarter of the previous fiscal year to “cost of sales,” cost of sales changed from ¥21,679 million to ¥22,143 million, and selling, general and administrative expenses changed from ¥10,350 million to ¥9,886 million.」
The company specifically disclosed the impact in the cumulative third quarter of the change in presentation applied from the first quarter, namely the reclassification of ¥463 million in depreciation expense for the same period of the previous year to cost of sales. - FY2024-Q2AdvancedAnnual report
「Previously, some depreciation expense for rental assets was recognized under “selling, general and administrative expenses,” but from the cumulative first quarter it has been included in “cost of sales.” This reflects a change in cost management methods to better reflect the substance of the business, under which all rental assets are defined as being held for rental business activities and all depreciation expense for rental assets is recognized in the cost of rental revenue. To reflect this change in presentation, the quarterly consolidated statements of income for the cumulative second quarter of the previous fiscal year have been reclassified. As a result of reclassifying ¥314 million in depreciation expense recorded under “selling, general and administrative expenses” in the cumulative second quarter of the previous fiscal year to “cost of sales,” cost of sales changed from ¥14,189 million to ¥14,504 million, and selling, general and administrative expenses changed from ¥7,107 million to ¥6,792 million.」
The company specifically disclosed the impact of the change in presentation applied from the first quarter, namely the reclassification of ¥314 million in depreciation expense for the same period of the previous year to cost of sales in the cumulative second quarter. - FY2024-Q1First statedAnnual report
「Previously, some depreciation expense for rental assets was recognized under “selling, general and administrative expenses,” but from the cumulative first quarter of the current fiscal year it has been included in “cost of sales.” This reflects a change in cost management methods to better reflect the substance of the business, under which all rental assets are defined as being held for rental business activities and all depreciation expense for rental assets is recognized in the cost of rental revenue. To reflect this change in presentation, the quarterly consolidated statements of income for the cumulative first quarter of the previous fiscal year have been reclassified.」
From the first quarter, depreciation expense for rental assets was reclassified from selling, general and administrative expenses to cost of sales. The ¥163 million recorded in the same period of the previous year was also reclassified to make cost of sales and selling, general and administrative expenses comparable.