Understanding environmental liabilities  (Ricoh Group/Global)
Companies are responsible for environmental contamination and anything that can lead to environmental contamination, whether caused by their past, current, or future business activities, and they must therefore make efforts into the future to prevent contamination or its expansion,
while at the same time take necessary measures such as purification and repair. In fiscal 2007, the Ricoh Group examined sites for soil/underground water contamination, asbestos, and PCBs as well as its responsibility to recover the original states, through cooperation among the accounting,
environment, and facility divisions, in order to appropriately reflect the impact on corporate performance of fulfilling the obligation that should be assumed by companies (environmental liabilities) in financial accounting.
In light of the survey results, the Group estimated (1) the amount of asset retirement obligations* calculated in compliance with the accounting standards, (2) the amount that could become liabilities in financial accounting in the future in compliance with laws or contracts,
and (3) the costs of purification and monitoring the Ricoh Group will carry out according to its own policies, although such purification or monitoring is not required by laws or contracts. The estimated future expenditure of asset retirement obligations of the Ricoh Group recognized as of the end of fiscal 2008 was ¥1,050 million (¥300 million after discounts,
calculated according to the accounting principles). Besides the liabilities in financial accounting, we also confirmed that ¥1,200 million could become liabilities in the future in compliance with laws and/or contracts,
while ¥1,210 million could become necessary for purification and monitoring carried out as the Group's voluntary efforts.
|
- *
- Payment obligation required by laws or contracts concerning future retirement of fixed assets. This obligation includes that for the retirement of harmful substances contained in fixed assets, as well. In Japan, the Accounting Standard for Asset Retirement Obligations will be introduced in fiscal 2010.
Implementation flow and roles of the environmental liabilities calculation project
 |
|
|
|
