Kansai Electric Power Co., Inc (Kansai
Electric) has decided to adopt the "Accounting Standard of Impairment
Loss on the fixed assets" from the six-month period ending September
30, 2004 ahead of accounting standard's requirement. As a result, the
financial forecasts for the fiscal year 2005 (04/01/2004-03/31/2005) announced
on May 18, 2004 have been revised as follows;
I. Early Adoption of "Accounting
Standard on Impairment of Fixed Asset"
Kansai Electric has decided to adopt
early the "Accounting Standard of Impairment Loss on the fixed assets"
from the six-month period ending September 30, 2004 in order to further
enhance the transparency of the financial statements and early strengthen
the soundness of financial position. Kansai Electric estimates that the
impairment losses on consolidated basis and non-consolidated basis will
amount to 44 billion and 26
billion respectively, and be booked as extraordinary losses.
II. Financial Forecast Revision
1. Revision of Consolidated Financial
2. Revision of Non-Consolidated Financial
3. The Reason for Revision
Electricity sales grew to a large degree
due to improvement of business confidence and a considerable increase
in air-conditioning demand caused by a smothering heat wave. However,
we will post extraordinary losses of the impairment losses by early adoption
of asset-impairment accounting (Estimated amount: 44
billion on consolidated basis, 26
billion on non-consolidated basis) and the cost of reorganization of group
companies scheduled for October 1 (Estimated amount:
38 billion on consolidated basis). Therefore, Kansai Electric revises
both the consolidated and non-consolidated financial forecasts.