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41
Notes to Consolidated Financial Statements
Brother Industries, Ltd. and Consolidated Subsidiaries
Year ended March 31, 2013 Assumptions used for the years ended March 31, 2013 and 2012, were as follows:
2013 2012
Periodic recognition of projected benefit obligation Straight-line method Straight-line method
Discount rate Principally from 1.5% to 2.0% Principally from 1.5% to 2.0%
Expected rate of return on plan assets Principally 3.0% Principally 3.0%
Recognition period of actuarial gain / loss Principally from seven years to 17 years Principally from seven years to 17 years
Amortization period of prior service benefit / cost Principally from seven years to 16 years Principally from seven years to 16 years
11. Asset Retirement Obligations
(a) Outline of Asset Retirement Obligations
The Group’s asset retirement obligations are primarily the result of legal obligations for the removal of leasehold improvements, the restoration of premises to the
original condition, and the removal of liquid crystal in the karaoke machines upon the termination of the lease of the karaoke house.
(b) Method applied to computation of the asset retirement obligations
The estimated periods until the asset retirement obligations are settled are one to 33 years and one to 34 years for the years ended March 31, 2013 and 2012, respec-
tively, from the acquisition. The discounted rates used for computation of the asset retirement obligations are 0.10% to 3.48% and 0.13% to 3.48% for the years ended
March 31, 2013 and 2012, respectively.
The changes in asset retirement obligations for the years ended March 31, 2013 and 2012, were as follows:
Millions of Yen
Thousands of
U.S. Dollars
2013 2012 2013
Balance at beginning of year ¥ 973 ¥ 1,022 $ 10,351
Additional provisions associated with purchases of property, plant and equipment 127 78 1,351
Reconciliation associated with passage of time 14 15 149
Reduction associated with settlement of asset retirement obligations (81) (121) (862)
Other 6(21) 64
Balance at end of year ¥ 1,039 ¥ 973 $ 11,053
Asset retirement obligations above were included in both of the “Other current liabilities” among the “CURRENT LIABILITIES” section and the “Other long-term liabilities”
among the “LONG-TERM LIABILITIES” section in the accompanying consolidated balance sheet.
12. Equity
Japanese companies have been subject to the Companies Act. The significant provisions in the Companies Act that affect financial and accounting matters are summa-
rized below: