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60
MITSUBISHI MOTORS CORPORATION Annual Report 2007
3. Changes in Accounting Policies
(a) Accounting Standard for Presentation of Net Assets in the Balance Sheet
Effective for the year ended March 31, 2007,
Accounting Standard for Presentation of Net Assets in the Balance Sheet
(Accounting Standards Board of Japan (ASBJ) statement No.5, December 9, 2005) and
Guidance on Accounting
Standard for Presentation of Net Assets in the Balance Sheet
(ASBJ Guidance No.8, December 9, 2005) have been
adopted. Total stockholders’ equity under the previous presentation amounted to ¥294,388 million ($2,493,759
thousand). In conjunction with the revisions of the Regulations Concerning Consolidated Financial Statements, net
assets in the consolidated balance sheets for this fiscal year are presented in accordance with the revised Regulations
Concerning Consolidated Financial Statements.
(b) Accounting Standard for Business Combinations
Effective for the year ended March 31, 2007,
Accounting Standard for Business Combinations
(Business accounting
Council, October 31, 2003),
Accounting Standard for Business Divestitures
(ASBJ statement No.7, December 27,
2005) and
Guidance on Accounting Standard for Business Combinations and Accounting Standard for Business Divestures
(ASBJ Guidance No.10, December 27, 2005) have been adopted.
4. U.S. Dollar Amounts
The U.S. dollar amounts in the accompanying consolidated financial statements are included, solely for convenience,
at ¥118.05 = U.S.$1.00, the exchange rate prevailing on March 31, 2007. This translation should not be construed
as a representation that the Yen amounts represent or have been, or could be, converted into U.S. dollars at that or any
other rate.
5. Trade Notes and Accounts Receivable, and Finance Receivables
The outstanding balances of trade notes and accounts receivable sold to others which have been deducted from the
respective accounts amounted to ¥6,614 million ($56,034 thousand) and ¥12,359 million as of March 31, 2007 and
2006, respectively. Such amounts deducted from finance receivables were ¥27,836 million ($235,800 thousand)
and ¥115,214 million as of March 31, 2007 and 2006, respectively.
As March 31, 2007 was on the weekend, some receivables and payables were not able to be settled by financial
institutions on that date. Accordingly, notes receivable and accounts receivable are affected by ¥8,279 million ($70,138
thousand) and, notes payable and accounts payable are affected by ¥47,341 million ($401,030 thousand) at March
31, 2007.
6. Property, Plant and Equipment
Accumulated depreciation of property, plant and equipment at March 31, 2007 and 2006 was ¥1,282,155 million
($10,861,124 thousand) and ¥1,260,506 million respectively.
Impairment losses were recognized in the following asset groups for the year ended March 31, 2007:
In thousands of
In millions of yen U.S. dollars
Location Application Assets Impairment loss amount
Shioya, Tochigi and Okaya, Assets used in
Nagano and others (78 sites) sales operations Land, buildings and others ¥6,379 $54,044
Niigata, Niigata and Sendai,
Miyagi and others (29 sites) Idle assets Land, buildings and others 1,085 9,198
¥7,465 $63,242