Mazda 2008 Annual Report Download - page 76

Available-for-sale securities that have available market values as of March 31, 2007 were as follows:
Millions of yen
Acquisition Carrying Unrealized
costs values gains
Stocks ¥562 ¥2,253 ¥1,691
Other 306 306 —
¥868 ¥2,559 ¥1,691
Available-for-sale securities with no available fair values as of March 31, 2007 were as follows:
Millions
of yen
Book value
Non-listed equity securities ¥17,100
5. INVENTORIES
Inventories at March 31, 2008 and 2007 were as follows:
Thousands of
Millions of yen U.S. dollars
As of March 31 2008 2007 2008
Finished products ¥242,224 ¥236,222 $2,422,240
Work in process 32,637 32,683 326,370
Raw materials and supplies 12,855 13,527 128,550
¥287,716 ¥282,432 $2,877,160
6. LAND REVALUATION
As of March 31, 2001, in accordance with the Law to Partially Revise the Land Revaluation Law (Law No.19, enacted
on March 31, 2001), land owned by the Company for business use was revalued. The unrealized gains on the
revaluation are included in equity as “Land revaluation”, net of deferred taxes. The deferred taxes on the unrealized
gains are included in liabilities as “Deferred tax liability related to land revaluation”.
The fair value of land was determined based on official notice prices that are assessed and published by the
Commissioner of the National Tax Administration, as stipulated in Article 2-4 of the Ordinance Implementing the Law
Concerning Land Revaluation (Article 119 of 1998 Cabinet Order, 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, 2008 from that at the time
of revaluation, as stipulated in Article 10 of the Land Revaluation Law, is ¥82,650 million ($826,500 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 have been reviewing 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,
for the year ended March 31, 2006, an impairment loss of ¥21,891 million 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
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.
The loss on impairment of fixed assets of ¥2,196 million ($21,960 thousand) was recognized in other income
(expenses) (see Note 12) in the consolidated statement of income for the year ended March 31, 2008.
8. SHORT-TERM DEBT AND LONG-TERM DEBT
Short-term debt at March 31, 2008 and 2007 consisted of loans, principally from banks with interest at March 31, 2008
and 2007 averaging 1.6% and 1.0% for the respective years.
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