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Financial Statement Related Services
（Fair Value of Investment and Rental Property）

Disclosure about Fair Value of Investment and Rental Property

Background
On convergence with IFRSs, the Accounting Standards Board of Japan (ASBJ) published “Accounting Standard for Disclosures about Fair Value of Investment and Rental Property” ASBJ Statement No. 20
and “Guidance on Accounting Standard for Disclosures about Fair Value of Investment and Rental Property” ASBJ Guidance No.23 on 28th November 2008. An entity shall apply the Accounting Standard and disclose fair value of investment and rental property in the notes of financial statements for the fiscal year ending on or after March 31, 2010.

Definitions and Scope of Investment and Rental Property’

The term “investment and rental property”is defined as property held to earn rents or for capital appreciation rather than for inventories. A property used in the production or supply of goods or services or for administrative office is not included in investment and rental property.

Investment and rental property includes the following property.
(1) Property that is classified as investment property in the balance sheet
(2) Idle property that is not expected to be used in the future
(3) Rented property other than the above

Investment and rental property also includes property that is being constructed or developed for future use
as investment and rental property or that is being redeveloped for continued future use as investment and rental property.

Disclosures about investment and Rental Property

The following items should be disclosed for investment and rental property. However, when the total amount of investment and rental property is immaterial, these disclosures can be omitted.

(1) Description of investment and rental property.
(2) The carrying amount of investment and rental property and its significant changes
(3) The fair value of investment and rental property and the method applied in determining it
(4) The amounts of income and expenses related to investment and rental property

Nihonbashi Real Estate Appraisal provides services related to these disclosures.

Flowchart of the Disclosures

Judgment on whether the subject properties are investment and rental properties. ↓
Judgment from the viewpoint of total amount of the properties In case that total amount of subject properties is immaterial, these disclosures can be omitted.
↓	↓
Material	Immaterial
↓	↓
↓	Can be Omitted
↓
Judgment from the viewpoint of amount of each property
↓	↓
Third-Party Appraisal or Own Evaluation	Calculation by a Simplified Method
Notes to the financial Statements