Mitsubishi 2004 Annual Report Download - page 42

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40
(b) Accounting for earnings per share
MMC adopted Accounting Standard No. 2, “Accounting Standard for Earnings per Share,” and Financial Accounting
Standards Implementation Guidance No. 4, “Implementation Guidance for Accounting Standard for Earnings per Share,”
which were issued by the Accounting Standards Board of Japan, from the beginning of the year ended March 31, 2003.
5. U.S. DOLLAR AMOUNTS
The U.S. dollar amounts in the accompanying consolidated financial statements are included, solely for convenience, at
¥105.69 = US $1.00, the exchange rate prevailing on March 31, 2004. The translation should not be construed as a representa-
tion that the yen amounts represented have been, or could be, converted into U.S. dollars at that or any other rate.
6. TRADE NOTES, ACCOUNTS RECEIVABLE AND FINANCE RECEIVABLES SOLD
The outstanding balances of trade notes and accounts receivable sold to others which have been deducted from the respective
accounts amounted to ¥30,091 million ($284,715 thousand) and ¥31,839 million as of March 31, 2004 and 2003, respective-
ly. Such amounts deducted from finance receivables were ¥464,253 million ($4,392,600 thousand) and ¥935,660 million as of
March 31, 2004 and 2003, respectively.
Following weakness in the North American economy, a higher probability was assigned to the higher end of the range of
future credit losses relating to securitized finance receivables estimated in the finance company, Mitsubishi Motors Credit of
America, Inc. An allowance for doubtful accounts of ¥39,956 million ($378,049 thousand), including a one time unusual
amount to bring the valuation to a more conservative estimate of value as compared to prior estimates, was recorded in cost of
sales during the period ended March 31, 2004.
7. INVENTORIES
Inventories at March 31, 2004 and 2003 consisted of the following:
In millions of yen In thousands of
U.S. dollars
2004 2003 2004
Finished products ¥171,528 ¥189,374 $1,622,937
Raw materials 19,980 19,745 189,049
Work in process 83,952 63,563 794,323
¥275,460 ¥272,682 $2,606,310
8. PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment at March 31, 2004 and 2003 consisted of the following:
In millions of yen In thousands of
U.S. dollars
2004 2003 2004
Land ¥ 178,611 ¥ 186,411 $ 1,689,960
Buildings and structures 334,049 340,287 3,160,656
Machinery and equipment 1,426,772 1,537,859 13,499,597
Construction in progress 38,919 48,642 368,245
1,978,354 2,113,199 18,718,460
Accumulated depreciation (1,270,636) (1,280,828) (12,022,297)
Property, plant and equipment, net ¥ 707,717 ¥ 832,371 $ 6,696,162
Included in the above as at March 31, 2004 are idle assets of land, and machinery and equipment with book values of
¥21,531 million ($203,721 thousand) and ¥1,496 million ($14,155 thousand), respectively.