Mazda 2008 Annual Report Download - page 74

Also, through the year ended March 31, 2007, proceeds from sale-leaseback transactions were included in the
cash flows from investing activities. Commencing in the year ended March 31, 2008, however, proceeds from sale-
leaseback transactions are included in the cash flows from financing activities by taking the financing nature of the
transactions into consideration.
The effects of adopting the new standards on the consolidated statement of cash flows for the year ended March
31, 2008 were to increase cash flows from operating activities by ¥13,890 million ($138,900 thousand), to decrease
cash flows from investing activities by ¥8,794 million ($87,940 thousand), and to decrease cash flows from financing
activities by ¥5,096 million ($50,960 thousand).
The effects of adopting the new standards on the segment information are discussed in the applicable section of
the notes to the consolidated financial statements.
Through the year ended March 31, 2007, in the consolidated balance sheet, leased property and lease obligations
related to finance lease transactions by an overseas consolidated subsidiary were included in the tools, furniture,
fixtures and other of the property, plant and equipment (¥2,145 million as of March 31, 2007), in the long-term debt
due within one year of the current liabilities (¥6,291 million as of March 31, 2007) and in the long-term debt due after
one year of the long-term liabilities (¥1,604 million as of March 31, 2007), respectively. Commencing in the year
ended March 31, 2008, however, these leased property and lease obligations are included in the leased property
of the property, plant and equipment, the long-term debt due within one year of current liabilities and long-term debt
due after one year of long-term liabilities, respectively, as the Domestic Companies adopted the revised accounting
standards for leases as discussed earlier in the accounting changes and adoption of new accounting standards, which
resulted in increased materiality of leased property and lease obligations.
As of March 31, 2008, the balance of the leased property in the property, plant and equipment amounted to
¥1,384 million ($13,840 thousand), and that of long-term debt due within one year amounted to ¥641 million ($6,410
thousand) in the current liabilities.
Depreciation of tangible fixed assets
Commencing in the year ended March 31, 2008, for those tangible fixed assets that were acquired on or after April 1,
2007, the Domestic Companies changed the depreciation method in accordance with the applicable provisions of the
revised Japanese Income Tax Code, Law No. 6, and Ordinance No. 83 to Partly Revise Japanese (Corporate) Income
Tax Code, both promulgated on March 30, 2007.
The effects of this change on the consolidated statement of income for the year ended March 31, 2008 were
to decrease operating income by ¥910 million ($9,100 thousand) and income before income taxes by ¥912 million
($9,120 thousand).
The effects of adopting the new standards on the segment information are discussed in the applicable section of
the notes to the consolidated financial statements.
Adoption of accounting standard by an overseas subsidiary
Through the year ended March 31, 2007, among the consolidated subsidiaries, CCA prepared its financial statements
based on the accounting principles generally accepted in Colombia to reflect adjustments for the country’s inflationary
economy and changing prices. On May 7, 2007, however, the federal government of Colombia promulgated a decree
to abolish such adjustments from the country’s accounting principles. As a result, commencing in the year ended
March 31, 2008, CCA’s financial statements do not reflect such adjustments.
In the consolidated statement of income for the year ended March 31, 2008, the effects of adopting the new
standard on operating income was none and those on income before income taxes were immaterial.
Changes in Financial Statement Presentation
Through the year ended March 31, 2007, in the consolidated balance sheet, directors’ and corporate auditors’
retirement benefits was presented as a separate component of the long-term liabilities. Commencing in the year
ended March 31, 2008, however, the retirement benefits are included in the other long-term liabilities due to a
decrease in materiality, as the Company has terminated the compensation for directors and corporate auditors in the
form of retirement benefits.
As of March 31, 2008, the balance of directors’ and corporate auditors’ retirement benefits recognized by certain
consolidated domestic subsidiaries amounted to ¥631 million ($6,310 thousand).
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