| 17. |
ASSET
RETIREMENT OBLIGATION |
The
provisions relate to the company’s legal obligation to restore leased properties and equipment to their original condition upon
the termination of the lease agreements.
Changes
in asset retirement obligation for the years ended June 30, 2025 and 2026, are as follows:
SCHEDULE OF CHANGES IN ASSET RETIREMENT OBLIGATION
| | |
2025 | | |
2026 | | |
2026 | |
| | |
As of June 30, | |
| | |
2025 | | |
2026 | | |
2026 | |
| | |
JPY’000 | | |
JPY’000 | | |
US$’000 | |
| Balance at the beginning of the year | |
| 16,281 | | |
| 386 | | |
| 2 | |
| Accretion | |
| 3 | | |
| 2 | | |
| — | * |
| Retirement (a) | |
| (15,898 | ) | |
| (388 | ) | |
| (2 | ) |
| Balance at the end of the year | |
| 386 | | |
| — | | |
| — | |
Note:
| (a) |
During
the year ended June 30, 2026, the Company has fully settled its restoration obligation of JPY386 thousand. No gain or loss has been
recognized. |
| |
|
| |
During
the year ended June 30, 2025, the Company closed its restaurant in Wakayama and executed an early termination of the underlying lease
agreement upon mutual agreement with landlord. The Company has fully settled its restoration obligation of JPY15,898 thousand by
i) offsetting the amount against the deposits held by the landlord of JPY12,851 thousand and ii) settling the residual amount of
JPY3,047 thousand in cash in December 2024. No gain or loss has been recognized. |
|