Change in inventory valuation approach based on product life cycles
First written in FY2019. 1 of 6 entries say "Restated". Latest entry: FY2026.
6 other companies' latest entry also says "Other".
- FY2026Sharp Decline in Inventory Write-DownsAnnual report
「Ending inventories are stated at amounts after being written down due to a decline in profitability, and the following inventory valuation loss is included in cost of sales: ¥187 million」
The inventory valuation loss decreased from ¥1,849 million in the previous fiscal year to ¥187 million. The method of writing down carrying values based on sales prospects for merchandise and products continues to be applied. - FY2025Decrease in inventory valuation lossesAnnual report
「Ending inventories are stated at amounts after being written down due to a decline in profitability, and the following inventory valuation loss is included in cost of sales: ¥1,849 million」
The inventory valuation loss decreased from ¥3,641 million in the previous fiscal year to ¥1,849 million. The method of writing down carrying values based on sales prospects and other factors continues to be applied. - FY2024Increase in Inventory Valuation LossesAnnual report
「Ending inventories are stated at amounts after being written down due to a decline in profitability, and the following inventory valuation loss is included in cost of sales: ¥3,641 million」
The inventory valuation loss increased from ¥1,599 million in the previous fiscal year to ¥3,641 million. The write-down of the carrying values of merchandise and products based on sales prospects and other factors emerged as a factor reducing profit for the current fiscal year. - FY2024-Q2Recognition of temporary inventory valuation lossesAnnual report
「In terms of profit, in addition to the effects of lower sales volumes, reduced operating rates and temporary inventory valuation losses,」
Temporary inventory valuation losses arose in connection with the valuation of merchandise and products and are cited as a factor that reduced profit for the cumulative second quarter. - FY2021RestatedAnnual report
「The Group generally values merchandise and products that have been held for a certain period since sales inventory handling began and that are in quantities above a certain level when it determines that they are not expected to be sold in the future, at amounts representing a 100% write-down of their carrying values. The resulting valuation losses are recorded in the consolidated income statement.」
The inventory valuation method involving, in principle, a 100% write-down of the carrying value of certain merchandise and products based on their product life cycles and sales prospects continues to be applied. - FY2019First statedAnnual report
「As sufficient data has accumulated over a period adequate for assessing product life cycles, and inventory management in Japan and overseas has become more sophisticated, it has become possible to obtain a more detailed understanding of the actual product life cycles. Accordingly, to more appropriately reflect the decline in the profitability of inventories in the financial position and operating results, the Company decided during the current consolidated fiscal year to change the period used for writing down the carrying value of merchandise included in inventories.」
Based on more sophisticated inventory management and accumulated data, the period for writing down the carrying value of merchandise was changed. Compared with the previous method, gross profit, operating profit, ordinary profit and profit before income taxes for the current consolidated fiscal year each increased by ¥1,679 million.