Isuzu 2002 Annual Report Download - page 27

ISUZU MOTORS LIMITED ANNUAL REPORT 2002
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8. Land Revaluation
In accordance with the Law concerning Revaluation of
Land enacted on 31 March, 1999, the land used for busi-
ness owned by the Company was revalued, and the un-
realized gain on the revaluation of land, net of deferred
tax, was reported as “Variance of Land Revaluation”
within Shareholders’ Equity, and the relevant deferred
tax was included in Liabilities as “Deferred Tax Liabili-
ties related to Land Revaluation” for the fiscal year
ended 31 March, 2002.
In accordance with the Law concerning Revaluation
of Land enacted on March 31, 1998, the land used for
business owned by some of the Company’s non-
consolidated subsidiaries and affiliates which were
accounted for by the equity method were revalued.
The method of revaluation is as follows:
Under article 3-3 of the enforcement ordinance for the
law, the land price for the revaluation is determined
based on the official notice prices assessed and pub-
lished by the National Land Agency of Japan, after
appropriate adjustments for the shape of land and the
timing of the assessment on 31 March, 1999.
9. Contingent Liabilities
Contingent liabilities at March 31, 2002 were as follows:
Millions of Thousands of
Yen U.S. Dollars
Guarantees of bank loans . . . . . . . . ¥66,353 $497,965
Export bills discounted . . . . . . . . . . 2,518 18,897
Notes discounted . . . . . . . . . . . . . . 3,434 25,771
Notes endorsed . . . . . . . . . . . . . . . . 1,304 9,786
Accounts and loans receivable
sold to others . . . . . . . . . . . . . . . . . 6,579 49,373
10. Lease Transactions
(1) Finance lease transactions, except for those which meet the conditions that the ownership of the leased assets is
substantially transferred to the lessee, were as follows:
(a) As a lessee
(i) Amounts equivalent to acquisition costs, accumulated depreciation and net balance as of March 31, 2002 and 2001
concerning the finance lease assets:
Thousands of
Millions of Yen U.S. Dollars
2002 2001 2002
Acquisition costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥68,291 ¥52,825 $512,507
Accumulated depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33,097 22,304 248,390
Net balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,193 30,520 264,117
(ii) Future payment obligations of finance lease expenses as of March 31, 2002 and 2001 are as follows:
Thousands of
Millions of Yen U.S. Dollars
2002 2001 2002
Portion due within one year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥11,299 ¥8,850 $84,797
Thereafter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27,231 22,907 204,362
Lease expense paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,572 10,139 101,856
Amounts equivalent to interest expenses are calculated by the interest method based on an excess of the aggre-
gate sum of lease payments over amounts equivalent to acquisition costs.
(b) As a lessor
Information of lease transaction as lessor is omitted since IFCO Inc., which was the only consolidated subsidiary perform-
ing leasing business, was excluded from the consolidated financial statements in fiscal 2002 due to the sale of IFCO.
(2) Operating leases were as follows
(a) As a lessee
Future payment obligations of operating lease expenses as of March 31, 2002 and 2001 are as follows:
Thousands of
Millions of Yen U.S. Dollars
2002 2001 2002
Portion due within one year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥1,291 ¥1,381 $9,691
Thereafter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,193 6,462 38,971