MITSUBISHI ESTATE Annual Report 2014
Financial section2 Changes in Accounting Policy3 U.S. Dollar Amounts4 Inventories5 Other Investments6 Short-Term Borrowings and Long-Term Debt(“Revised Accounting Standard for Retirement Benefits”)The Company adopted “Accounting Standard for Retirement Benefits” (ASBJ Statement No. 26 of May 17, 2012) and “Guidance on Accounting Standard for Retirement Benefits” (ASBJ Guidance No. 25 of May 17, 2012) (except for certain provisions described in the main clause of Section 35 of the standard and in the main clause of Section 67 of the guidance) as of the end of the fiscal year ended March 31, 2014. These accounting standards require entities to apply a revised method for recording the retirement benefit obligation, after deducting pension plan assets, as a liability for retirement benefits. In addition, unrecognized actuarial differences and unrecognized prior service costs are recorded as a liability for retirement benefits. Concerning the application of the “Accounting Standard for Retirement Benefits,” based on the provisional treatment set out in Clause 37 of the standard, the effects of such changes in the current fiscal year have been recorded in retirement benefits liability adjustments through accumulated other comprehensive income. As a result of this change, a liability for retirement benefits was recognized in the amount of ¥20,380 million ($198,020 thousand), an asset for retirement benefits was recognized in the amount of ¥6,320 million ($61,414 thousand), and accumulated other comprehensive income decreased by ¥4,748 million ($46,135 thousand) as of March 31, 2014. In addition, net assets per share decreased by ¥3.42 ($0.03).Translation of yen amounts into U.S. dollar amounts is included solely for convenience, as a matter of arithmetic computation only, at the rate of ¥102.92 = U.S. $1.00, the approximate rate of exchange prevailing on March 31, 2014. The inclusion of such amounts is not intended to imply that yen amounts have been or could be readily converted, realized or settled in U.S. dollars at the above or any other rate.Inventories at March 31, 2014 and 2013 are summarized as follows:Millions of yenThousands of U.S. dollars201420132014Real estate for sale¥ 66,484¥152,354$ 645,978Land and housing projects in progress319,355343,6213,102,952Land held for development8,6098,61583,655Other8,2086,44479,755Total¥402,658¥511,036$3,912,341 Other investments at March 31, 2014 and 2013 were as follows:Millions of yenThousands of U.S. dollars 201420132014Lease deposits¥113,015¥110,689$1,098,089 Long-term prepaid expenses and other50,89437,836494,503Total¥163,909¥148,525$1,592,592 At March 31, 2014 and 2013, short-term borrowings and the current portion of long-term debt consisted of the following:Millions of yenThousands of U.S. dollars201420132014Loans, principally from banks¥ 63,762¥ 68,291$ 619,537Commercial paper—35,000—Current portion of long-term debt399,723224,0133,883,825Total¥463,486¥327,304$4,503,363 The weighted-average interest rates per annum on short-term borrowings outstanding at March 31, 2014 and 2013 were 0.54% and 0.59%, respectively. Short-term borrowings are principally unsecured.58MITSUBISHI ESTATE CO., LTD.