Pioneer 2016 Annual Report Download - page 37

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Millions of Yen
Carrying Amount Fair Value
April 1, 2015 Increase/Decrease March 31, 2016 March 31, 2016
Idle property ¥3,075 ¥(10) ¥3,065 ¥5,271
Total ¥3,075 ¥(10) ¥3,065 ¥5,271
The carrying amounts, changes in such balances and fair value of such properties as of March 31, 2016 and 2015
were as follows:
5. Long-lived Assets
The Group reviewed its long-lived assets for impairment
as of March 31, 2016 and 2015. As a result, the Group
recognized an impairment loss as other expenses for
certain processing machinery groups related to organic
light-emitting diodes and idle assets whose disposal is
planned due to a decline of the market value and the
prospects for future profit.
In principle, business assets are grouped based
on management classification. However, idle assets
whose disposal is planned or whose future use is not
forecasted are grouped individually in the smallest cash
flow generating unit independent of each other.
For the year ended March 31, 2015, the Group recognized an impairment loss of ¥1,331 million, as summarized in
the table below:
Disclosure for the year ended March 31, 2016 is omitted due to immateriality in the amounts.
Millions of Yen
Application Type Location Impairment Loss
Organic light-emitting
diodes manufacturing facilities Machinery and equipment, etc.
Yonezawa, Yamagata, Japan ¥ 4
Assets to be disposed of Machinery and equipment, etc. China 1,245
Assets to be disposed of Software Brazil 82
Total ¥1,331
In 2015, the group of business assets relating to
organic light-emitting diodes was reduced to the value
in use since the book value of the group exceeded
the expected future cash flows. As for the group of
assets to be disposed of, 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 November 2008, the ASBJ issued ASBJ State-
ment No. 20, “Accounting Standard for Investment
Property and Related Disclosures” and ASBJ Guid-
ance No. 23, “Guidance on Accounting Standard for
Investment Property and Related Disclosures.”
The value in use of the organic light-emitting diode
business asset group was estimated based on the
memorandum value. As for the group of assets to be
disposed of, the projected selling price was used as the
basis of recoverable values for machinery and equip-
ment, etc., and the value in use of zero as the basis of
values for software.
As of March 31, 2016 and 2015, the Group held
certain idle properties in Yamanashi and other areas
in Japan.
Gain on sales of idle properties for the years
ended March 31, 2016 and 2015, was ¥123 million
($1,088 thousand) and ¥1,473 million, respectively.
6. Investment Property
35
Pioneer Corporation Annual Report 2016