|SEQ_NO||1||Date of announcement||2022/03/15||Time of announcement||18:44:23|
Far Eastern Ishizuka Green Pet Corporation (“FIGP”), FENC’s subsidiary, announced the changes in accounting estimates from fiscal year 2022
|Date of events||2022/03/15||To which item it meets||paragraph 9|
1.Date of the board of directors' resolution:2022/03/15 2.Nature of the change: In accordance with Article 6 of “Regulations Governing the Preparation of Financial Reports by Securities Issuers”, FIGP, FENC’s subsidiary, planned to change the accounting estimates for the useful life of major machinery equipment. 3.Reason for the change: Take the Japanese operational practices into consideration, the useful life of washing line & SSP equipment has been changed from 20 years to 10~15 years since 1 January 2022. 4.Changed period for retrospective application of the new accounting policy: N/A 5.The line items affected and the actual effect for the year before accounting change: The changes in accounting estimates are expected to increase 2022 depreciation expense by JP￥ 319.943 million. 6.Actual effect on the opening balance of retained earnings for the past accounting year:NIL 7.The reasonableness and necessity for the change in accounting policy or accounting estimate after the beginning of the accounting year: Given that the efficiency of modernized equipment has been uplift, FIGP benchmarked its Japanese peers’ useful life of their equipment also in consideration of the energy saving and decarbonization trend. Thus, in order to better reflect the Company’s current operation, FIGP planned to change the useful life of its major machinery equipment. 8.If the decided effect is impracticable, specify the reasons why retrospective application is impracticable, and how and from when the accounting policy change will be applied:N/A 9.If the decided effect is impracticable, the opinion provided by the CPA about the effect of the audit opinion for the accounting year preceding the accounting change:N/A 10.Opinion expressed by the CPA regarding itemized analysis of reasonableness: The CPA conducted the reasonableness of analysis, and a reviewed opinion was issued. 11.Objection or reservation opinion from the independent directors:N/A 12.Countermeasures:NIL 13.Any other matters that need to be specified: The aforesaid proposal was approved by the Board of Directors and resolved by Supervisors, and was accordingly reported to the 2022 shareholders' meeting in accordance with the regulations on 15 March 2022.