Yamaha 2005 Annual Report Download - page 59

Yamaha Annual Report 2005 57
(n) Land revaluation
Pursuant to the “Law Concerning the Revaluation of Land,” land used for the business operations of the Company, two consolidat-
ed subsidiaries and an affiliate was revalued. The excess of the revalued carrying amount over the book value before revaluation has
been included in shareholders’ equity.
This land revaluation was determined based on the official standard notice prices. It was conducted in accordance with the
relevant regulations of the Corporation Tax Law of Japan with certain adjustments as deemed necessary.
(o) Appropriation of retained earnings
Under the Commercial Code of Japan (the “Code”), the appropriation of retained earnings with respect to a given financial period is
made by resolution of the shareholders at a general meeting held subsequent to the close of such financial period. The accounts for
that period do not, therefore, reflect such appropriations. Refer to Note 22.
2. Change in Method of Accounting
A new Japanese accounting standard entitled “Impairment of Fixed Assets” was issued in August 2002 and is effective for financial
years beginning on or after April 1, 2005. Early adoption is permissible for the financial year beginning on or after April 1, 2004. The
new standard requires that tangible and intangible fixed assets be carried at cost less depreciation, and be reviewed for impairment
whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Companies
are required to recognize an impairment loss in their income statement or if certain indicators of assets impairment exist and if the
book value of the fixed assets exceeds the undiscounted sum of their future cash flows.
Effective April 1, 2004, the Company and its consolidated subsidiaries opted for an early adoption of the new accounting stan-
dard for the impairment of fixed assets. The effect of the adoption of this standard was to recognize an impairment loss of ¥32,703
million ($304,526 thousand) and to decrease depreciation expense by ¥1,238 million ($11,528 thousand). As a result, income
before income taxes and minority interests decreased by ¥31,464 million ($292,988 thousand).
After the recognition of the impairment loss, “fixed assets” represents the total recoverable amount which is stated at the
carrying amount less the accumulated impairment loss. See Note 21 for the effect of the loss on impairment of fixed assets on the
segment information.
3. U.S. DOLLAR AMOUNTS
Solely for the convenience of the reader, the accompanying financial statements for the year ended March 31, 2005 have been
presented in U.S. dollars by translating all yen amounts at ¥107.39 = U.S.$1.00, the exchange rate prevailing on March 31, 2005.
This translation should not be construed as a representation that yen have been, could have been, or could in the future be converted
into U.S. dollars at the above or any other rate.
4. INVESTMENT SECURITIES
Investment securities at March 31, 2005 and 2004 were as follows:
5. ACCUMULATED DEPRECIATION
Accumulated depreciation at March 31, 2005 and 2004 amounted to ¥234,910 million ($2,187,448 thousand) and ¥227,779 mil-
lion, respectively.
Investments in and advances to unconsolidated subsidiaries and affiliates
Other
Investment securities
2005
$ 659,829
280,799
$ 940,637
2004
¥ 62,522
38,495
¥ 101,017
2005
¥ 70,859
30,155
¥ 101,015
Millions of Yen
Thousands of
U.S. Dollars