Nissan 2008 Annual Report Download - page 53

51
Nissan Annual Report 2008
Prior fiscal year Current fiscal year
From April 1, 2006 From April 1, 2007
[
To March 31, 2007
][
To March 31, 2008
]
(2) Depreciation of property, plant and equipment
Depreciation of property, plant and equipment is calculated
principally by the straight-line method based on the
estimated useful lives and the residual value determined by
the Company.
(3) Basis for significant reserves
1) Allowance for doubtful accounts
Allowance for doubtful accounts is provided based on
past experience for normal receivables and on an
estimate of the collectibility of receivables from
companies in financial difficulty.
2) Accrued warranty costs
Accrued warranty costs are provided to cover the cost of
all services anticipated to be incurred during the entire
warranty period in accordance with the warranty
contracts and based on past experience.
3) Accrued retirement benefits
Accrued retirement benefits or prepaid pension costs are
recorded principally at an amount calculated based on
the retirement benefit obligation and the fair value of the
pension plan assets at the end of the current fiscal year.
The net retirement benefit obligation at transition is
being amortized over a period of 15 years by the
straight-line method.
Prior service cost is being amortized as incurred by the
straight-line method over periods which are shorter than
the average remaining years of service of the eligible
employees.
Actuarial gain or loss is amortized in the year following
the year in which the gain or loss is recognized primarily
by the straight-line method over periods which are
shorter than the average remaining years of service of
the eligible employees
(4) Foreign currency translation
Receivables and payables denominated in foreign
currencies are translated into yen at the rates of exchange
in effect at the balance sheet date, and differences arising
from the translation are included in the statement of
operations.
The balance sheet accounts of the foreign consolidated
subsidiaries are translated into yen at the rates of exchange
in effect at the balance sheet date. Revenue and expense
accounts are translated at the average rate of exchange in
effect during the year. Differences arising from the
translation are presented as translation adjustments and
minority interests in net assets.
(5) Lease accounting
Noncancellable lease transactions that transfer substantially
all risks and rewards associated with the ownership of
assets are accounted for as finance leases.
(2) Depreciation of property, plant and equipment
Same as the prior fiscal year.
(3) Basis for significant reserves
1) Allowance for doubtful accounts
Same as the prior fiscal year.
2) Accrued warranty costs
Same as the prior fiscal year.
3) Accrued retirement benefits
Same as the prior fiscal year.
4) Accrued directors’ retirement benefits
Accrued directors’ retirement benefits are provided at an
amount to be required at the year-end according to
internal regulations.
(4) Foreign currency translation
Same as the prior fiscal year.
(5) Lease accounting
Same as the prior fiscal year.