Posting extraordinary loss
11 Mai 2010 - 11:16AM
UK Regulatory
TIDMTAK
RNS Number : 6879L
Takefuji Corporation
11 May 2010
Announcement of Posting Extraordinary Loss in Consideration of Transfer
Procedures etc. of the Assets Held
Takefuji Corporation and its subsidiaries (the "Group") have been seeking to
transfer a part of fixed assets and a part of loans receivable to procure
necessary funds for near-term operation and had decided to adopt bidding for
said transfer respectively. Based on the bidding results, the Company's board
of directors' meeting held on May 11, 2010 resolved the policy of the transfer.
While contract procedures will be progressed hereafter, in the financial results
for the fiscal year ended March 2010, we expect to record impairment loss
(extraordinary loss) stemmed from writing down fixed assets, which are subject
to the transfer, to recoverable value, as well as expecting to record provision
for loss on transfer of receivables (extraordinary loss) for anticipated loss
related to the transfer of a part of loans receivable. The details are
described below.
Details
1. Transfer of a part of fixed assets
(1) Impairment of fixed assets subject to transfer of part of fixed assets
The Group conventionally adopted different impairment procedures for business
assets and unutilized assets; regarding business assets, they were divided into
groups based on the operation, regarding real estate properties for rent and
unutilized assets (including real estate properties for investment), each
property was labeled for dividing into groups.
In the current consolidated fiscal year, transfer of a part of fixed assets,
which had been sought to procure necessary funds for near-term operation,
entered into a stage of concrete procedures. Given that we have reached price
setting procedure by bidding and that the transfer policy was resolved based on
the bidding results, regarding fixed assets subject to such transfer, each
property shall be labeled for dividing into groups regardless of the usage etc.
of the properties.
Such changes of usage that materially lowered recoverable value caused
impairment loss regarding fixed assets subject to transfer. Thus 8,718 million
yen of impairment loss (extraordinary loss) is expected to be recorded due to
writing down book value of fixed assets to recoverable value for the
consolidated fiscal year ended March 2010.
(2) Breakdown of expected impairment regarding fixed assets subject to transfer
(million yen)
+-------------------+-----------------+-----------------+------------+---+
| Holder | Usage | Description | Expected |
| | | | impairment |
+-------------------+-----------------+-----------------+----------------+
| Takefuji | Business | Buildings and | 232 | |
| Corporation | properties | structures | | |
+ + +-----------------+------------+---+
| | | Land | 1,345 | |
+ + +-------------------+-----------------+-----------------+
| | | Total | 1,577 | |
+ +-----------------+-------------------+-----------------+-----------------+
| | Real estate | Buildings and | 628 | |
| | properties for | structures | | |
| | rent | | | |
+ + +-----------------+-----------------+------------+
| | | Equipment | 11 | |
+ + +-------------------+-----------------+-----------------+
| | | Land etc. | 2,687 | |
+ + +-------------------+-----------------+-----------------+
| | | Total | 3,327 | |
+ +-------------------+-------------------+-----------------+-----------------+
| | Unutilized | Buildings and | 32 | |
| | properties | structures | | |
+ + +-----------------+-----------------+------------+
| | | Equipment | 0 | |
+ + +-------------------+-----------------+-----------------+
| | | Land etc. | 314 | |
+ + +-------------------+-----------------+-----------------+
| | | Total | 346 | |
+ +-------------------+-------------------+-----------------+-----------------+
| | Total | Buildings and | 892 | |
| | | structures | | |
+ + +-----------------+-----------------+------------+
| | | Equipment | 12 | |
+ + +-------------------+-----------------+-----------------+
| | | Land etc. | 4,346 | |
+ + +-------------------+-----------------+-----------------+
| | | Total | 5,249 | |
+-------------------+-------------------+-------------------+-----------------+-----------------+
| TDS Co., Ltd. | Business | Buildings and | 75 | |
| | properties | structures | | |
+ + +-----------------+------------+---+
| | | Equipment | 0 | |
+ + +-------------------+-----------------+-----------------+
| | | Land etc. | 3,393 | |
+ + +-------------------+-----------------+-----------------+
| | | Total | 3,469 | |
+-------------------+-----------------+-------------------+-----------------+-----------------+
| The Group total | Buildings and | 967 | |
| | structures | | |
+ +-----------------+------------+---+
| | Equipment | 12 | |
+ +-------------------+-----------------+-----------------+
| | Land etc. | 7,739 | |
+ +-------------------+-----------------+-----------------+
| | Total | 8,718 | |
+-------------------+-----------------+-----------------+------------+---+
(Reference)
1. Planned schedule of transfer (transfer of ownership) Target: May-end 2010
2. The total impairment loss is expected to be 10,601 million yen. The amount
includes impairment write-down related to fixed assets subject to the transfer
above, 1,231 million yen of the impairment loss recorded by the 3rd quarter and
652 million yen of impairment loss based on conventional method such as
equivalent amount of assets related to branch offices scheduled to be closed
hereafter.
2. Transfer of a part of loans receivable
(1) Expected loss related to transfer of loans receivable
Same as the fixed assets above, we decided to transfer a part of loans
receivable managed at our regional loan collection offices to procure necessary
funds for near-term operation. We have progressed practical discussion with
counterparties and we are currently at the stage of acquiring a Letter of
Intent to purchase loans receivable as a part of procedures to determine loans
receivable in scope and transfer price. Thus, it is possible to reasonably
estimate the loss related to such transfer of loans receivable and the
probability is extremely high and we expect to record 11,276 million yen of
expected loss as provision for loss on transfer of receivables (extraordinary
loss) in the financial results for the fiscal year ended March 2010.
(2) Breakdown of expected loss related to transfer
(million yen)
+-----------------------------------------------+------------+--+
| Description of loans receivable subject to |Expected loss |
| transfer | |
+-----------------------------------------------+---------------+
| Expected loss related to transfer of loans | 10,587 | |
| receivable managed at regional loan | | |
| collection offices (the amount after | | |
| deducting credit loss allowance corresponding | | |
| to the receivables and transfer price from | | |
| the book value of the receivables) | | |
+-----------------------------------------------+------------+--+
| Interest revenues etc. those which are | 689 | |
| subject to repayment to the buyer at the time | | |
| of the transfer of loans receivable. | | |
| (Interests etc. paid between the reference | | |
| date, Jan. 29, 2010, and the accounting | | |
| closing date) | | |
+-----------------------------------------------+------------+--+
| Total | 11,276 | |
+-----------------------------------------------+------------+--+
(Reference)
Planned schedule of transfer of loans receivable Target: May-end 2010
This information is provided by RNS
The company news service from the London Stock Exchange
END
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