Sharp 2015 Annual Report Download - page 52

14. Impairment Loss
(Impairment Loss)
With regards to accounting for impairment assets, the Company and its consolidated subsidiaries iden-
tify cash generating units in consideration of business characteristics and business operations. As a result,
idle assets are identified as respective cash generating units.
The Company and its consolidated subsidiaries reduced the book value of production equipment for
Digital Information Appliances to an estimated recoverable amount due to the decreasing profitability
and the unlikelihood of recouping the investment and recognized a decreased amount of ¥3,080 million
as impairment loss for the year ended March 31, 2014.
Details were as follows: ¥1,068 million for molds, equipment and vehicles; ¥1,851 million for long-
term prepaid expenses; ¥161 million for others.
The estimated recoverable amount was evaluated at zero in accordance with use value due to the
unlikelihood of cash flow in the future.
In addition, the Company and its consolidated subsidiaries reduced the value of goodwill and recog-
nized a decreased amount of ¥8,690 million as impairment loss due to the unlikelihood of an estimated
profitability to be generated by certain consolidated subsidiaries for the year ended March 31, 2014.
The estimated recoverable amount was evaluated in accordance with use value and the discount rate
was 14.7%
The Company and its consolidated subsidiaries reduced the book value of assets for business use lo-
cated at Digital Information Appliance Division to an estimated recoverable amount due to the decreas-
ing profitability and the unlikelihood of recouping the investment and recognized a decreased amount
of ¥3,892 million as an impairment loss for the year ended March 31, 2015. Details were as follows:
¥973 million for molds; ¥2,596 million for long-term prepaid expenses; and ¥323 million for others. The
estimated recoverable amount was evaluated at zero in accordance with use value due to the unlikeli-
hood of cash flow in the future.
The Company and its consolidated subsidiaries reduced the book value of assets for business use
located at Energy System Solutions Division to an estimated recoverable amount due to the decreasing
profitability and the unlikelihood of recouping investment and recognized a decreased amount of ¥9,267
million as an impairment loss for the year ended March 31, 2015. Details were as follows: ¥5,344 million
for buildings and structures; ¥1,229 million for machinery, equipment and vehicles; ¥2,547 million for
lease assets; and ¥147 million for others. The estimated recoverable amount for buildings and land was
determined by the net realizable value based on appraisal valuations. The net realizable value for the
other assets was evaluated at zero.
The Company and its consolidated subsidiaries reduced the book value of assets for business use lo-
cated at Display Device Business to an estimated recoverable amount due to the decreasing profitability
and the unlikelihood of recouping the investment and recognized the decreased amount of ¥77,709 mil-
lion as an impairment loss for the year ended March 31, 2015. Details were as follows: ¥41,503 million
for buildings and structures; ¥22,798 million for machinery, equipment and vehicles; ¥12,508 million for
long-term prepaid expenses; and ¥900 million for others. The estimated recoverable amount for build-
ings, machinery and equipment and land was determined by the net realizable value based on appraisal
valuations. The net realizable value for the other assets was evaluated at zero.
The Company and its consolidated subsidiaries reduced the book value of a part of assets for busi-
ness use located at Electronic Components and Devices Business to an estimated recoverable amount
due to scheduled review and concentration of production system and recognized the decreased amount
of ¥6,293 million as an impairment loss for the year ended March 31, 2015. Details were as follows:
¥3,078 million for buildings and structures; ¥3,066 million for machinery, equipment and vehicles; and
¥149 million for others. The estimated recoverable amount for buildings and land was determined by
the net realizable value based on appraisal valuations. The net realizable value for the other assets was
evaluated at zero.
The Company and its consolidated subsidiaries reduced the book value of assets for business use lo-
cated at a part of consolidated subsidiaries in U.S.A., Mexico, Malaysia, China and others to an estimated
recoverable amount due to the decreasing profitability and the unlikelihood of recouping investment,
and recognized a decreased amount of ¥3,690 million as an impairment loss for the year ended March
31, 2015. Details were as follows: ¥1,851 million for buildings and structures; ¥1,367 million for ma-
chinery, equipment and vehicles; and ¥472 million for others. The estimated recoverable amount was
determined by the net realizable value based on appraisal valuations and others.
The Company and its consolidated subsidiaries reduced the book value of unemployed capital located
at Electronic Components and Devices Business to an estimated recoverable amount due to the unlikeli-
hood of use in the future and recognized the decreased amount of ¥1,337 million as an impairment loss
for the year ended March 31, 2015. Details were as follows: ¥1,286 million for buildings; and ¥51 million
for land. The estimated recoverable amount for buildings and land was determined by the net realizable
Notes to the Consolidated Financial Statements
50
Notes to the Consolidated
Financial Statements
Financial Section
Segment Outline
Medium-Term Management Plan
for Fiscal 2015 through 2017
Investor Information
Directors, Audit & Supervisory Board
Members and Executive Officers
Risk Factors
Corporate Governance
Contents
Corporate Social
Responsibility (CSR)
Message to our Shareholders
Fiscal 2014 Review by
Product Group
Financial Highlights
SHARP Annual Report 2015
Consolidated
Subsidiaries
Independent Auditor’s
Report
Consolidated Statements of
Cash Flows
Consolidated Statements of
Changes in Net Assets
Consolidated Statements of
Comprehensive Income
Consolidated Statements of
Operations
Consolidated Balance Sheets
Financial Review
Five-Year Financial Summary