Mazda 2008 Annual Report Download - page 75

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Additional Information
Accounting for residual value of fixed assets
In relation to the changes in the Japanese Income Tax Code, commencing in the year ended March 31, 2008, for the
tangible fixed assets that were acquired on or before March 31, 2007 and for which accumulated depreciation has
reached 95% of the acquisition cost, the Domestic Companies recognize depreciation for the difference between
the 5% residual value and the nominal value (i.e., 1 yen) on a straight-line basis over 5 years, starting in the year
following the year in which accumulated depreciation has reached 95% of the acquisition cost (or the year ended
March 31, 2008, whichever comes later).
The effects of adopting this accounting for residual value of property, plant and equipment on the consolidated
statement of income for the year ended March 31, 2008 were to decrease operating income by ¥3,951 million
($39,510 thousand) and to decrease income before income taxes by ¥4,113 million ($41,130 thousand).
The effects of adopting this accounting for residual value of fixed assets on the segment information are discussed
in the applicable section of the notes to the consolidated financial statements.
Termination of directors’ and corporate auditors’ retirement benefits
The Company used to recognize, in the liabilities, directors’ and corporate auditors’ retirement benefits that provides
for retirement benefits to directors and corporate auditors; the amount that would be required by the internal
corporate policy if all the directors and corporate auditors retired on the balance sheet date was recognized. As part
of management reform, however, by the resolution of the general meeting of shareholders held on June 26, 2007, the
Company reached a decision to terminate retirement benefits to directors and corporate auditors as of the end of this
general meeting of shareholders as well as to pay the directors and corporate auditors such benefits already earned
by the time of the decision.
In relation to this decision, in the consolidated balance sheet as of March 31, 2008, an amount equivalent to the
retirement benefits earned prior to the resolution, i.e., ¥618 million ($6,180 thousand), was recognized in other long-
term liabilities.
4. SECURITIES
The Company and its consolidated subsidiaries had no trading or held-to-maturity debt securities with available fair
values at March 31, 2008 and 2007.
Available-for-sale securities that have available market values as of March 31, 2008 were as follows:
Millions of yen Thousands of U.S. dollars
Acquisition Carrying Unrealized Acquisition Carrying Unrealized
costs values gains costs values gains
Stocks ¥558 ¥1,441 ¥883 $5,580 $14,410 $8,830
Other 362 362 — 3,620 3,620 —
¥920 ¥1,803 ¥883 $9,200 $18,030 $8,830
Available-for-sale securities with no available fair values as of March 31, 2008 were as follows:
Millions Thousands of
of yen U.S. dollars
Book value Book value
Non-listed equity securities ¥3,196 $31,960
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