Mazda 2007 Annual Report Download - page 71
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promulgated on March 31, 1998). Reasonable adjustments, including those for the timing of assessment,
are made to the official notice prices.
The amount of decrease in the aggregate fair value of the revalued land as of March 31, 2007 from
that at the time of revaluation, as stipulated in Article 10 of the Land Revaluation Law, is ¥84,197 million
($713,534 thousand).
7. Impairment of Fixed Assets
As discussed in Note 3, the Domestic Companies adopted the new accounting standard for impairment
of fixed assets and reviewed their fixed assets for impairment as of the year ended March 31, 2006.
Assets are generally grouped by company; however, idle assets and assets for rent are individually
reviewed for impairment.
As a result, an impairment loss of ¥21,891 million ($187,103 thousand) was recognized on certain
idle assets without a future business plan, including distribution centers and production equipment, by
reducing the carrying amount to the amount recoverable. The reduction in the carrying amount was
recognized as an impairment loss.
The impairment loss on idle production equipment included tooling to be held for an extended period
of time for the production of parts to be individually shipped; the impairment loss on such tooling
amounted to ¥471 million ($3,992 thousand). The recoverable amount of an idle asset is measured
based on the net selling amount. For land, the net selling amount is estimated based on a third-party
appraisal; for other idle assets, the net selling amount is nominal.
In addition, a consolidated subsidiary in the United States recognized an impairment loss of ¥1,030
million ($8,729 thousand) on certain assets held for use in accordance with the accounting principles
generally accepted in the United States.
The loss on impairment of fixed assets of ¥3,356 million ($28,441 thousand) recognized in other
income (expenses) (see Note 12) in the consolidated statement of income for the year ended March
31, 2007 consisted of the following:
Thousands of
Use Location Type Millions of yen U.S. dollars
Idle assets Hokkaido Buildings and structures ¥0,197 $01,669
(sales equipment) Land 528 4,475
Other 434
Subtotal 729 6,178
Idle assets Hiroshima Machinery and vehicles 157 1,331
(production equipment) Tools, furniture and fixtures 471 3,991
Subtotal 628 5,322
Assets held for use Okayama Land 969 8,212
(sales equipment)
Assets held for use U.S.A. Tools, furniture and fixtures 1,030 8,729
(production equipment)
Total consolidated ¥3,356 $28,441
8. Short-Term Debt and Long-Term Debt
Short-term debt at March 31, 2007 and 2006 consisted of loans, principally from banks with interest
at March 31, 2007 and 2006 averaging 1.0% for both the years.