Mitsubishi 2011 Annual Report Download - page 58

Download and view the complete annual report

Please find page 58 of the 2011 Mitsubishi annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 70

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70

The significant components of deferred tax assets and liabilities
as of March 31, 2011 and 2010 consisted of the following:
(In millions of yen)
(In thousands
of U.S. dollars)
March 31,
2011 2010 2011
Deferred tax assets:
Net operating loss carry
forward ¥ 235,755 ¥ 253,602 $ 2,835,304
Accrued retirement benefits 44,743 45,641 538,111
Allowance for doubtful
accounts 4,704 6,044 56,574
Allowance for product
warranties 12,042 11,352 144,827
Accounts payable
– warranties 4,460 4,724 53,638
Fixed assets
(incl. impairment losses) 31,056 33,007 373,494
Others 52,772 59,230 634,671
Less valuation allowance (355,892) (388,634) (4,280,124)
Total deferred tax assets 29,642 24,968 356,497
Deferred tax liabilities:
Reserves under the Special
Taxation Measures Law (301) (323) (3,620)
Unrealized holding gain on
securities (6,994) (3,663) (84,116)
Fair value adjustments
relating to land (4,420) (4,511) (53,159)
Accelerated depreciation
in overseas consolidated
subsidiaries (15,548) (13,084) (186,997)
Others (17,632) (16,069) (212,051)
Total deferred tax liabilities (44,896) (37,651) (539,945)
Net deferred tax liabilities ¥ (15,253) ¥ (12,682) $ (183,447)
Deferred tax assets and liabilities at March 31, 2011 and 2010
are included in the accompanying consolidated balance sheets as
follows:
(In millions of yen)
(In thousands
of U.S. dollars)
March 31,
2011 2010 2011
Current assets ¥ 3,218 ¥ 2,007 $ 38,702
Non-current assets 9,188 6,060 110,505
Current liabilities (9) –(114)
Non-current liabilities (27,650) (20,750) (332,541)
Net deferred tax liabilities ¥(15,253) ¥(12,682) $(183,447)
20. Asset Retirement Obligations
(a) Overview
MMC and its consolidated subsidiaries have obligations associated
with restoration and removal of tangible fixed assets according to
concluded certain property lease agreements at the end of lease
term, and have obligations associated with removal of hazardous
substances.
(b) Method for measuring the amount of asset retirement
obligations
The useful life from the acquisition or construction date has been
estimated ranging from 2 years to 43 years, and the amount of
asset retirement obligations has been measured using the discount
rates ranging from 0.2 % to 4.0%.
(c) Change in the amount of asset retirement obligations for the
fiscal year ended March 31, 2011:
(In millions
of yen)
(In thousands
of U.S. dollars)
For the year ended
March 31,
2011 2011
Balance at beginning of year (*) ¥6,288 $75,631
Liability incurred due to the acquisition
of property, plant and equipment 343
Discount accretion expense 119 1,437
Others (53) (641)
Balance at end of year ¥6,358 $76,469
(*) Effective April 1, 2010, “Accounting Standard for Asset Retirement
Obligations” (ASBJ Statement No. 18 issued on March 31, 2008) and the
“Implementation Guidance on Accounting Standard for Asset Retirement
Obligations” (ASBJ Guidance No.21 issued on March 31, 2008) have been
adopted. The balance at the beginning of year is recorded adopting this
new standard.
MITSUBISHI MOTORS CORPORATION
Annual Report 2011
56