Yamaha 2006 Annual Report Download - page 63

Yamaha Annual Report 2006 63
March 31,
Excess of revalued carrying amount of land over market value
2006
$ (154,959)
2005
¥ (15,042)
2006
¥ (18,203)
Millions of Yen
Thousands of
U.S. Dollars
The Company and two consolidated subsidiaries determined the value of their land based on the respective value registered in
the land tax list or the supplementary land tax list as specified in No.10 or No.11 of Article 341 of the Local Tax Law governed by
Item 3 of Article 2 of the Enforcement Order for the “Law Concerning the Revaluation of Land” (Cabinet Order No.119 published on
March 31, 1998). An affiliate determined the value of its land based on a reasonable adjustment to its value as determined by a
method which the Commissioner of the National Tax Administration established and published in order to standardize the determi-
nation of land value. Land value is the underlying basis for the assessment of land tax as specified in Article 16 of the Local Tax Law
which is governed by Item 4 of Article 2 of the Enforcement Order for the “Law Concerning the Revaluation of Land.”
The excess of the revalued carrying amount of such land over its market value at the balance sheet dates is summarized as follows:
One consolidated subsidiary and one affiliate
The Company and a consolidated subsidiary
March 31, 2000
March 31, 2002
Dates of Revaluation
8. LAND REVALUATION
The Company, two consolidated subsidiaries and an affiliate have carried over the revaluation of their landholdings at the following
dates in accordance with the “Law Concerning the Revaluation of Land” (Law No. 34 published on March 31, 1998):
9. IMPAIRMENT LOSS ON FIXED ASSETS
The following table summarizes loss on the impairment of fixed assets for the year ended March 31, 2005:
a) Grouping of assets into cash-generating units
Assets, based on their business segment, are classified into cash-generating units defined as the smallest identifiable groups of
assets which generate cash inflows and which are largely independent of the cash inflows from other assets or groups of assets.
b) Recognition of impairment loss
An impairment loss on assets in the recreation business was recognized due to unfavorable results which resulted in operating losses.
An impairment loss on unused assets was also recognized as a recovery to market value is not anticipated and because certain of
these assets are scheduled for disposal.
c) Determination of recoverable amount
The recoverable amount of the assets in the recreation business was measured at their value in use and by their estimated future
cash flows discounted by 9.4%. The recoverable amount of the unused assets was measured at their the net realizable value based
on a valuation under the current tax regulations unless other market-based evidence was available.
Loss on impairment of fixed assets for the year ended March 31, 2006 was immaterial and has thus been omitted from disclosure.
2005
¥ 22,321
9,666
¥ 31,988
¥71
532
111
¥ 715
¥ 22,392
10,199
111
¥ 32,703
Impaired Assets
Buildings and structures
Land
Total
Buildings and structures
Land
Other
Total
Buildings and structures
Land
Other
Total
Group of Fixed Assets
Assets in recreation business
Unused assets
Total
Millions of Yen