Pioneer 2011 Annual Report Download - page 37

Pioneer Corporation Annual Report 2011 35
Thousands of
Millions of Yen U.S. Dollars
Application Type Location Impairment Loss Impairment Loss
Organic light-emitting diode Buildings, machinery Yonezawa, Yamagata ¥ 50 $ 602
manufacturing facilities and equipment, etc.
Assets to be disposed of Land, buildings, etc. U.K., Germany, Mexico 352 4,241
Assets to be disposed of Buildings Fukuroi, Shizuoka 116 1,398
Idle assets Land, buildings, etc. Miura, Kanagawa, etc. 347 4,181
Idle assets Buildings, etc. Tendo, Yamagata 459 5,530
Total ¥1,324 $ 15,952
For the year ended March 31, 2011, the Group recognized impairment losses of ¥1,324 million ($15,952
thousand), as summarized in the table below:
For the year ended March 31, 2010, the Group recognized impairment losses of ¥7,932 million, as sum-
marized in the table below:
In 2011 and 2010, the group of business assets
relating to organic light-emitting diode was
reduced to the value in use since the book value of
the group was above the expected future cash flow.
As for the group of assets to be disposed of and
the group of idle assets whose land value is falling,
each individual asset group was reduced to the net
selling price and the amount of decrease was
recorded in other income (expenses) as loss on
impairment of property, plant and equipment.
In 2011, the value in use of organic light-emit-
ting diode business asset group was determined
to be zero. As for the group of assets to be dis-
posed of and the idle asset group, the market
price information was obtained on the basis of val-
ues provided by real estate appraisers and other
specialists.
In 2010, the discount rate used for computing
the value in use of the organic light-emitting diode
business asset group was 4.48%. As for the group
of assets to be disposed and the idle asset group,
the market price information was obtained on the
basis of values provided by real estate appraisers
and other specialists.
Millions of Yen
Application Type Location Impairment Loss
Organic light-emitting diode Buildings, machinery and Yonezawa, Yamagata ¥ 697
manufacturing facilities equipment, etc.
Assets to be disposed of Land, buildings, etc. Meguro, Tokyo 2,417
Assets to be disposed of Buildings, machinery and U.K., Australia, etc. 364
equipment, etc.
Idle assets Land, buildings, etc. Tsurugashima, Saitama 2,443
Idle assets Land, buildings, etc. Fukuroi, Shizuoka 1,709
Idle assets Land, buildings, etc. Tendo, Yamagata, etc. 302
Total ¥ 7,932
6. Investment Property
In November 2008, the ASBJ issued the ASBJ
Statement No. 20, “Accounting Standard for
Investment Property and Related Disclosures” and
the ASBJ Guidance No. 23, “Guidance on Account-
ing Standard for Investment and Related Disclo-
sures”.
This accounting standard and the guidance
require that fair value of property held to earn rent-
als or for capital appreciation rather than for inven-
tories should be disclosed. This accounting stan-
dard and the guidance were effective for fiscal
years ending on or after March 31, 2010, starting
from the annual financial statements for the first
year with early adoption permitted.
The Group applied the new accounting stan-
dard and guidance effective March 31, 2010.
In 2011, the Group holds certain idle properties
in Shizuoka, other areas in Japan and overseas
(mainly in Mexico). Net of rental income and oper-
ating expenses, net gain on sales and impairment
loss for those rental properties for the year ended
March 31, 2011 were ¥46 million ($554 thousand),
¥5,832 million ($70,265 thousand), and ¥863 mil-
lion ($10,398 thousand), respectively.
Notes to Consolidated Financial Statements