Tokyo, May 9, 2017 -Mitsubishi Heavy Industries, Ltd. (MHI) has booked extraordinary losses in its non-consolidated financial statements for Fiscal Year 2016 (ended March 31, 2017). Details are outlined below.
Breakdown of extraordinary losses
1. Loss on revaluation of investment securities: ¥69,103 million
2. Provision of allowance for doubtful accounts: ¥51,084 million
Reasons behind incurrence of extraordinary losses
In accordance with accounting standards, extraordinary losses have been booked due to the revaluation of the investment securities of Mitsubishi Aircraft Corporation and other Group companies which experienced negative net worth during FY2016, and also due to the provision of allowance for doubtful accounts against some loans made to these companies. These are presented as extraordinary losses in MHI's non-consolidated financial statements for this period.
Impact of extraordinary losses on consolidated results
The operating results and financial status of the aforementioned Group companies have been periodically factored into MHI's consolidated financial statements. This latest booking of losses in the Company's non-consolidated financial statements will have no impact on its consolidated financial results for the 2016 fiscal period.