Mitsubishi 2007 Annual Report Download - page 63

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61
Notes to Consolidated Financial Statements
The groupings of assets are determined as follows:
Assets used in production are grouped either by manufacturing plants or operational sites. Assets used in sales opera-
tions are generally grouped by operational sites. Assets leased to others and idle assets have their own asset groups.
As a result of the previously listed factors that cast doubt on the ability of the MMC group to continue as a going
concern, as well as significant decreases in market prices, the book value of some of the assets has been adjusted
downwardly to recoverable value.
The recoverable values of assets have been obtained through comparing and then taking the higher of: value in use,
which is determined by estimating future cash flow with a 6% discount rate; and net realizable value, which is based
on an appraisal value obtained from a professional real estate appraiser or calculated on a reasonable basis by using
the estate tax valuations through land assessments and similar methods.
Loss on impairment of fixed assets amounted to ¥7,465 million ($63,242 thousand) and ¥45,084 million for the
year ended March 31, 2007 and 2006, respectively. Losses on land at March 31, 2007 and 2006 amounted to
¥3,102 million ($26,285 thousand) and ¥20,665 million, respectively. Losses on buildings at March 31, 2007 and
2006 amounted to ¥2,340 million ($19,826 thousand) and ¥3,944 million, respectively.
Losses on other assets at March 31, 2007 and 2006 amounted to ¥2,022 million ($17,130 thousand) and
¥20,474 million, respectively.
7. Investments
Other securities at March 31, 2007 and 2006 were as follows:
In millions of yen
2007 2006
Acquisition Carrying Unrealized Unrealized Acquisition Carrying Unrealized Unrealized
cost amount gains (losses) cost amount gains (losses)
Other securities:
Securities with
market value ¥10,682 ¥27,892 ¥17,218 ¥(8) ¥ 9,870 ¥25,110 ¥15,246 ¥(6)
Securities without
market value 32,577 32,577 — — 27,288 27,288 — —
Total other securities ¥43,259 ¥60,469 ¥17,218 ¥(8) ¥37,159 ¥52,399 ¥15,246 ¥(6)
In thousands of U.S. dollars
2007
Acquisition Carrying Unrealized Unrealized
cost amount gains (losses)
Other securities
Securities with
market value $ 90,490 $236,274 $145,858 $(75)
Securities without
market value 275,962 275,962 — —
Total other securities $366,453 $512,236 $145,858 $(75)