IFRSs in the

finacial statements
Toyota
of
Tsusho
2020 - 2021

GROUP WORK
Mentor: TS. Le Van Lien
Course name: Financial Accounting 1
Class: FA1.0503

Ha Noi, January 2022

Financial Accounting 1 – Group FPT

CONTENT

PART 1: ABOUT OF TOYOTA TSUSHO 4

1.1. Profile 4
1.2. History 4
1.3. Organization 5

PART 2: EXPLAIN NATURE OF OPERATION OF THE COMPANY 6

2.1. Its key operation 6
2.2. Main product 6
2.2.1. Metals 6
2.2.2. Global Parts & Logistics 7
2.2.3. Automotive 8
2.2.4. Chemical & Polymer 9
2.2.5. Food & Consumer Services 9
2.2.6. Africa Division 9
2.2.7. Value Creation Business: 10
2.3. Main market 10

PART 3: EXPLAIN HOW TO THE ACCOUNTING STANDARDS APPLIED IN THE FINANCIAL STATEMENT
11
3.1. IAS 02_Inventory 11
3.1.1. Definition: 11
3.1.2. How the company recognized Inventory: 11
3.2. IAS 16: Property, Plant and Equipment 12
3.2.1. Definition 12
3.2.2. How the company recognized PPE: 13
3.2.3. Detail: 14
3.3. IAS 40: Investment Property 16
3.3.1. Definition: 16
3.3.2. How the company recognized Investment Property: 16
3.4. IAS 38: Intangible Assets 17
3.4.1. Definition 17
3.4.2. How the company recognized Intangible assets 17
3.5. IAS36: Impaiment of Assets: 20
3.6. IFRS 15: Revenue 21
3.6.1. Definition: 21
3.6.2. Revenue recognition: 22
3.6.3. How does Toyota generate revenue? 23
3.6.4. Toyota's recorded revenue over the years 2020-2021: 23
3.6.5. Some methods to increase sales of Toyota: 24

PART 4: CONCLUSION 25

REFERENCE 26

LIST OF PICTURE 27

LIST OF MEMBER 28

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Financial Accounting 1 – Group FPT

INTRODUCTION
The purpose of this report is to present the author's research on the application of
international accounting standards in Toyota's financial statements.

The report conducts research on six types of international standards that have been adopted
by Toyota: Inventories (IAS 2); Property, Plant and Equipment (IAS16); Impairment of Assets
(IAS 36); Intangible Assets (IAS 38); Investment Property (IAS40) & Revenue from Contracts
with Customers (IFRS 15).

It will analyze the company's data and compare its figures based on the company's financial
statements that were published and concluded on March 31, 2021.

Toyota Tsusho Corporation a member of the Toyota Group, is a trading company.

Toyota Tsusho Corporationis is the 167th in Fortune Global 500.

Toyota prepares its consolidated financial statements in compliance with International

Financial Reporting Standards, according to the company's financial summary.

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Financial Accounting 1 – Group FPT

PART 1: ABOUT OF TOYOTA TSUSHO

1.1. Profile

Toyota Tsusho Corporation a member of the Toyota Group, is a

trading company. Toyota Tsusho (Toyota) has a worldwide presence
through its many subsidiaries and operating divisions, including over 150
offices, and 900 subsidiaries and affiliates around the world. The
Company markets automobiles, trucks, steel products, industrial
machinery, chemical products, and energy in both domestic and overseas
markets.

The Metal segment is engaged in the manufacture of steel products,

non-ferrous metal products and others. Global Manufacturing Parts and Logistics segment
provides automobile components, logistics and others. Automobile segment provides
automobiles, motorcycles, trucks, buses and automobile parts. Machinery, Energy and Plant
Project segment provides machine tools, industrial machineries, testing measuring apparatus,
electrical equipment, coal and others. Chemical and Electronics segment provides
semiconductors, electronic devices, software and others. Food and Life Industry segment is
engaged in manufacture of feed materials, grain and others.

Toyota Tsusho Corporationis is the 167th in Fortune Global 500.

Toyota prepares its consolidated financial statements in compliance with International

Financial Reporting Standards, according to the company's financial summary.

1.2. History

Toyota established Toyoda Kinyu Kaisha in 1936 to provide sales financing for Toyota cars.
The dissolution of the Toyota zaibatsu in 1948 led to the trading division of Toyota Finance being
spun off to a new company called Nisshin Tsusho Kaisha, Ltd. This company was renamed
"Toyoda Tsusho" in 1956.

Toyota Tsusho began exports of Toyota cars in 1964, starting with exports to the Dominican
Republic. By the 1980s it had expanded its business to include overseas production for the Toyota
Group, and had established a second head office in Tokyo.

Toyota Tsusho merged with Kasho Company, Ltd. in 2000. Kasho was a trading company
focused on the Southeast Asia markets and dealt in rubber, paper, food, chemicals and general
merchandise.

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Financial Accounting 1 – Group FPT

Toyota Tsusho then acquired Tomen Corporation, another Japanese trading company, on
April 1, 2006. This acquisition expanded Toyota Tsusho's food, textiles, chemicals and energy
business and caused it to leapfrog Sojitz to become the sixth-largest general trading company in
Japan. Tomen had been founded in 1920 as Toyo Menka Kaisha from the cotton trading business
of Mitsui & Co. and was active in grain processing, power generation, agrochemicals and other
business areas worldwide. These acquisitions together expanded Toyota Tsusho's business
beyond its historical automotive focus.

1.3. Organization

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Financial Accounting 1 – Group FPT

PART 2: EXPLAIN NATURE OF OPERATION OF THE COMPANY

2.1. Its key operation

Trading is the core model. For import/export and domestic trading enterprises, they provide
information services, logistics, financing, risk management, and other functions. These functions
bring value to their products and services by meeting their consumers' needs.

Trading companies also employ business investment as a primary business model. They
work on projects that go beyond ordinary commercial transactions, such as development and
investment. In partnership with their global partners, they are accelerating their investments in
potential business disciplines and markets.

Figure 1 – Global Network

2.2. Main product

Toyota Tsusho's business spans a wide range of fields. They have organized their business
under seven operating divisions: Metals, Global Parts & Logistics, Automotive, Machinery,
Energy & Project, Chemicals & Electronics, Food & Consumer Services, Africa. Though
different in the products and services they provide, these divisions share the same goal of creating
and delivering diverse value by developing unique functions from a dedicated customer-oriented
approach.

2.2.1. Metals

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Financial Accounting 1 – Group FPT

The Metals Division views steel and nonferrous metals as products with unique properties
and functions rather than simple materials. This approach allows us to provide optimal products
and logistics matching the needs of both suppliers and users. Furthermore, through restructuring
their SBUs* into their -Automotive Metal Sheet Products, Metal Products, Nonferrous Metals,
and Resources Recycling-they have made possible swift
and specialized responses to a broad range of customer
needs from both the "arteries" and the "veins," with such
responses being suited to each industry and product.

Main Product and Services: Plain steel, specialty

steel products, construction steel materials, non-ferrous
metal ingots, precious metal ingots, low-pressure products,
copper products, iron scarp, non-ferrous metal scrap, ferro-
alloy products, pig iron, end-of-life vehicle and parts, waste catalysts, rare earths resources and
rare metals, and others.

Figure 2 – Metals Division’s Business Portfolio

2.2.2. Global Parts & Logistics

The Global Parts & Logistics Division will demonstrate

its integration functions in its areas of strength, including its
global network, logistics infrastructure, supply-and-demand
management, and assembly. It will also exceed the
expectations of customers by creating a next generation
society with a focus on mobility to be a problem-solving
division that grows along with its customers.

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Financial Accounting 1 – Group FPT

Main Product and Services: Automobile parts, logistics business, tire and wheel assembly
business, and other businesses.

Figure 3 – Business Lines of the Global Parts & Logistics Division

2.2.3. Automotive

The Automotive Division exports passenger cars, commercial vehicles including trucks and
buses, industrial vehicles, and spare parts produced by
automobile and transport equipment makers, primarily in the
Toyota Group, in Japan and overseas to countries around the
world. The division operates a distributor business and dealer
businesses through a global network that spans 146
countries. By building community-based automobile sales
systems that provide sales, spare parts, and after-sales service
operations and by creating “best in town” dealers that are
trusted by customers, the division is working to create a safe and reassuring mobility society.

Main Product & Service: Passenger vehicles, Commercial vehicles, Light vehicles,
Motorcycles, Trucks, Automotive parts, Buses

Figure 4 – Worldwide Operations and Regional Strategies

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Financial Accounting 1 – Group FPT

2.2.4. Chemical & Polymer

Chemical business, they are responsible for the trading

and supply of basic chemicals, organic chemicals, inorganic
chemicals and specialty chemicals which are widely used in
industries such as textiles, detergent, home & personal care,
paints & coating and polyurethane.

For Plastics business, they are supplying wide range of

performance plastic material to Automotive, E&E & Home
Appliance applications, such as Polyethylene (PE),
Polypropylene (PP), Polyethylene Terephthalate (PET). Polystyrene (PS), etc.

Main Products & Services: Domestic and international trading in manufacturing and
logistics equipment, parts, tools and construction machinery primarily for the automotive industry
as well as integrated support functions including provision of related design, repair, and
installation services. Energy-related business development and operation with a focus on
renewable energy generation including wind, solar, hydroelectric, geothermal, and biomass
energy. Domestic and international trading of conventional fuels as well as biofuels and other
products and development and operation of infrastructure including airports and ports

2.2.5. Food & Consumer Services

The Food & Consumer Services Division is engaged

in a diverse range of businesses in six business fields,
contributing to the healthy and prosperous lifestyles of
people through global markets. The division is also
actively working to realize a sustainable society.

Không có nguồn nào trong tài liệu hiện tại.

Không có nguồn nào trong tài liệu hiện tại.: Feed and
oilseeds, Grains, processed foods, food ingredients,
agriculture, marine, and livestockproducts, alcoholicbeverages, property, casualty and life
insurance, brokered securities, textile products, apparel, nursing care and medical products,
construction and housing materials, Office furniture, operates general hospitals and hotel
residences.

2.2.6. Africa Division

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Financial Accounting 1 – Group FPT

The Africa Division currently has a network encompassing

all 54 countries in Africa with a total of approximately 22,000
employees and engages in a diverse range of businesses in four
business fields. With diversifying its business portfolio,
strengthening partnerships with global brands, and integrating
value chains as its business strategies, the Africa Division is
contributing to Africa’s economic growth and industrialization,
and responding to the expanding middle class.

Main Product & Service: In addition to manufacturing, sales, and services with a focus on
automobiles, healthcare, consumer goods, and the retail business, the division is also developing
new business in areas that will solve problems in Africa such as electric power infrastructure,
agriculture, and ICT.

2.2.7. Value Creation Business:

2.3. Main market

Toyota Tsusho does business with customers around the world through a global network
spanning around 120 countries and 1000 group companies. They build business from a local
perspective by understanding the culture and history of each country and region, and taking an
"on-site, hands-on, in-touch" approach attuned to local needs and driven by talented local staff.

And Toyota’s primary markets for its automobiles are Japan, North America, Europe and
Asia.

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Financial Accounting 1 – Group FPT

PART 3: EXPLAIN HOW TO THE ACCOUNTING STANDARDS

APPLIED IN THE FINANCIAL STATEMENT
3.1. IAS 02_Inventory
3.1.1. Definition:

Inventories are assets:

• Held for sale in the ordinary course of business: goods purchased and held for resale,
finished goods, ...
• In the process of production for such sale: Work In Process (WIP); semi finished goods
• In the form of materials or supplies to be consumed in the production process or in the
rendering of services: raw materials and supplies
➢ Toyota Tsusho Annual Inventory:
2021 2020

Merchandise and finished goods ¥800,605 ¥742,580

Work in progress 9,728 10,596

Raw materials and supplies 30,375 30,429

Total ¥840,709 ¥783,606

Toyota Tsusho inventory for 2021 was 840,709 Millions of Yen, a 7.29 % increase from 2019

3.1.2. How the company recognized Inventory:

Inventories are measured at the lower of cost and net realizable value. (NRV is the estimated
selling price in the ordinary course of business, less estimated costs to completion and the
estimated costs necessary to make the sale.)

The acquisition cost of inventories is determined by the specific identification method

when inventory items are not ordinarily interchangeable and mainly by the moving-average
method when inventory items are interchangeable.

Inventories acquired with the purpose of generating profits from short-term fluctuations in
price are measured at fair value less costs to sell, where any changes in fair value are recognized
in profit or loss.

The carrying amount of inventories measured at fair value after deducting direct selling
cost and the revaluation loss of inventories recognized as expense during the year are not

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Financial Accounting 1 – Group FPT

significant. Inventory primarily consists of direct costs incurred during the year as recorded in
cost of sales on the consolidated statement of profit or loss.

Explain why the company chose to calculate closing inventory using the moving-average
method

• Make Sell-in-Bulk Easy

First, one of the main focuses of your business is to sell the products that you have on hand
and reduce your stock. Counting items individually can be quite easy, but if you sell items in bulk,
the process gets much harder.

Things that are sold in bulk make it virtually impossible to differentiate between old and
new stock. However, new deliveries often have different prices from old deliveries, so without
calculating your moving average cost, you may not have an accurate picture of your cost of goods
sold.

• More Accurate Sales & Inventory Reports

Being able to accurately determine your moving average cost is vital when it comes to sales
and inventory reports. The circumstances of every sale change depending on how many items
you have in stock and how much it costs you to get them.

• Be in a Good Financial Position

Your moving average cost can be used when you are computing your net sales and
comparing it with your cost of goods sold, giving you a more accurate gross profit computation.

3.2. IAS 16: Property, Plant and Equipment

3.2.1. Definition

PPE are tangible assets that:

• Are held for use in the production or supply of goods or services, for rental to others, or
for administrative purposes and
• Are expected to be used during more than one period

Some of the most common parts of property, plant, and equipment are:

✓ Land
✓ Buildings and structures
✓ Machinery and vehicles
✓ Manufacturing equipment
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Financial Accounting 1 – Group FPT

✓ Office equipment
✓ Office furniture

3.2.2. How the company recognized PPE1:

Property, plant and equipment is initially recognized at acquisition cost including costs
directly attributable to the acquisition, dismantling and removal costs, restoration costs, and
borrowing costs directly attributable to the acquisition and construction of assets which require a
significant period of time to complete.

After initial recognition, property, plant and equipment is measured at cost less any
accumulated depreciation and any accumulated impairment loss based on a cost model.

Depreciation on property, plant and equipment, other than land and construction in
progress, is calculated on a straight-line basis over the following estimated useful lives:

✓ Buildings and structures: 2 to 60 years

✓ Machinery and vehicles: 2 to 40 years

Depreciation method, estimated useful lives and residual values are reviewed at the fiscal
year-end and amended as necessary.

The property, plant, and equipment line shown on the balance sheet is usually net property,
plant, and equipment. This means it is the cost of the property, plant, and equipment less
accumulated depreciation.

1 Financial Section 2020, page 18

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Financial Accounting 1 – Group FPT

The cumulative depreciation of an asset up to a single point in its life. Regardless of the
method used to calculate it, the depreciation of an asset during a single period is added to the
previous period's accumulated depreciation to get the current accumulated depreciation.

3.2.3. Detail2:
• Acquisition cost, accumulated depreciation and accumulated impairment losses of
property, plant and equipment are as follows:

2 Financial Section 2020, page 43-46

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Financial Accounting 1 – Group FPT

• Increase in “Other” is mainly attributable to the reassessment of asset retirement

obligations for wind power related facilities for the year ended March 31, 2020

• Property, plant and equipment, net:

At March 31, 2020, property, plant and equipment totaled ¥840,629 million, a ¥786826
million increase from March 31, 2019.

Depreciation is included in “Cost of sales” or “Selling, general and administrative expenses”

in the consolidated statement of profit or loss.

Impairment losses are presented as “Impairment losses on fixed assets” in the consolidated
statement of profit or loss in the amounts of ¥1,452 million ($13,115 thousand) and ¥1,478 million
for the years ended March 31, 2021 and 2020, respectively.

For the year ended March 31, 2021, the group recognized an impairment loss for business
properties of the Global Parts & Logistics Division and the Metals Division in India by reducing
their carrying amount to the recoverable amount as it became highly unlikely to earn profits as
initially projected.
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Financial Accounting 1 – Group FPT

For the year ended March 31, 2020, the group recognized an impairment loss for power
generation business properties of the Machinery, Energy & Project Division by reducing their
carrying amount to the recoverable amount, since their disposal has been decided.

The recoverable amount is measured at value in use estimated by applying an appropriate

discount rate, which reflects assumed risks specific to the asset or cash-generating unit.

3.3. IAS 40: Investment Property3

3.3.1. Definition:

Property (land, a building, a portion of a building, or both) owned (by the owner or the lessee
under a finance lease) for the purpose of earning rentals or capital appreciation, or both, rather
than for:

• Use in the production or supply of goods or services or for administrative purposes; or

• Sale in the ordinary course of business.

3.3.2. How the company recognized Investment Property:

An investment property is initially recognized at acquisition cost, which includes direct

acquisition costs as well as borrowing costs to be capitalized. It is measured at cost less
accumulated depreciation and accumulated impairment losses based on a cost model after initial
recognition.

Investment property is amortized in a straight line over its estimated useful life (10 to 47
years).

At the end of the fiscal year, the depreciation method, estimated useful lives, and residual
values are reviewed and, if necessary, amended.

The following are the changes in acquisition cost, accumulated depreciation, and
accumulated impairment losses:

3 Financial Section 2021, page 46-48

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Financial Accounting 1 – Group FPT

Investment property decreased 462 million from 2020, totaled ¥18,740 million in 2021.

The fair value of an investment property is determined by an independent appraiser with

professional qualifications and recent work that is similar to the target investment property in
terms of location and characteristics.

3.4. IAS 38: Intangible Assets4

3.4.1. Definition

An intangible asset is a non-monetary asset that is "identifiable" but lacks physical substance.

The three most important characteristics of an intangible asset are:

- Control (power to obtain benefits from the asset)

- Future economic benefits (such as revenues or reduced future costs)
- Identifiability

Some of the most common types of Toyota's intangible assets are:

- Goodwill
- Other intangible assets
3.4.2. How the company recognized Intangible assets
1. Goodwill: After initial recognition, goodwill is not amortized but measured at cost less
accumulated impairment losses.
2. Intangible assets other than goodwill

4 Financial Section 2021, page 46-47

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Financial Accounting 1 – Group FPT

Other than goodwill, intangible assets are initially recognized at acquisition cost if acquired
individually, or at fair value on the acquisition date if acquired through a business combination.
Following initial recognition, assets are measured at acquisition cost less any accumulated
amortization and applicable accumulated impairment loss, using a cost model.

Mining rights are typically amortized using a unit-of-production method based on estimated
reserve volume. Except for mining rights, intangible assets other than goodwill are amortized in
the following manner over their estimated useful life:

Marketing rights, customer-related, and so on.

✓ Software 2 to 15 years
✓ Marketing rights, customer-related, etc. 10 to 15 years

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Financial Accounting 1 – Group FPT

In the consolidated statement of profit or loss, amortization expense is included in "Cost of

sales" or "Selling, general, and administrative expenses."

There is no significant intangible asset whose useful life is not easily determinable among
the intangible assets listed above.

The carrying amounts of significant intangible assets as of March 31, 2021 and 2020 are as
follows for intangible assets with readily determinable useful lives.

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Financial Accounting 1 – Group FPT

Customer-related assets of the automotive marketing business in Africa are valued at

¥66,065 million ($596,739 thousand) and ¥62,699 million for the fiscal years ended March 31 of
2021 and 2020, respectively.

As of March 31, 2021 and 2020, the average remaining useful lives of "marketing rights,
customer-related, etc." were four and five years, respectively

3.5. IAS36: Impaiment of Assets:

• Impairment Risk Associated with Fixed Asset

The group has machinery and vehicles, carriers, buildings and structures, goodwill and other
fixed assets, and right-of-use assets that are exposed to impairment risk. Any reduction in the
value of these assets incurs impairment losses that may adversely affect the operating results and
financial condition of the group.

• Impairment losses on fixed assets in Other income (expenses)

o 2021: (1,452) Millions of Yen
o 2020: (1,478) Millions of Yen
• Impairment losses on fixed assets in Cash flows from operating activities
o 2021: 1,452 Millions of Yen
o 2020: 1,478 Millions of Yen
• Impairment losses of Property, plant and equipment (Millions of Yen)

March 31, 2020 Buildings Machinery Land Construction in Other Total

and and vehicles progres
structures

Impairment 972 422 38 - 18 1,452

losses

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Financial Accounting 1 – Group FPT

• Impairment losses of Intangible asset

March 31, Goodwill Marketing Mining Software Total

2020 rights, rights Other
customer- intangible
related, etc assets

Impairment - - - - - -
losses

• Impairment losses of Investment property

An investment property is initially recognized at acquisition cost including direct costs

incurred for acquisition and borrowing costs to be capitalized. After initial recognition, it is
measured at cost less accumulated depreciation and accumulated impairment losses based on a
cost model.

• Impairment of non-financial assets

The group assesses whether there is any indication that any of the following non-financial
assets may be impaired as of the fiscal year-end: property, plant and equipment, intangible assets
other than goodwill, investment property and right-of-use assets. If any such indication of
impairment exists, the group estimates the recoverable amount of the asset or the cashgenerating
unit.

The group examines impairment of goodwill by comparing carrying amount and recoverable
amount on an annual basis, or on a timely basis if there is an indication that the goodwill may be
impaired. The recoverable amount of an asset or a cash-generating unit is measured at the higher
of its fair value less costs of disposals and value in use. If the carrying amount of the asset or
cash-generating unit exceeds its recoverable amount, the carrying amount of the asset is reduced
to its recoverable amount and that reduction is recognized as an impairment loss.

3.6. IFRS 15: Revenue

3.6.1. Definition:

Income arising in the course of an equity’s ordinary activities (extra-ordinary)

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Financial Accounting 1 – Group FPT

Revenue can be defined as the amount of money a company receives from its customers in
exchange for the sales of goods or services. Revenue is the top line item on an income statement
from which all costs and expenses are subtracted to arrive at net income.

Income

 Revenue (ordinary activities)

 Other income (extra-ordinary activities)
3.6.2. Revenue recognition5:
a. Basis of revenue recognition and measurement:

The company measures and recognizes revenues based on the following five-step approach.

- Step 1: Identify the contract with a customer

- Step 2: Identify the performance obligations in the contract
- Step 3: Determine the transaction price
- Step 4: Allocate the transaction price to performance obligations in the contract
- Step 5: Recognize revenue when (or as) the entity satisfies a performance
obligation
b. Timing of revenue recognition:

Based on the aforementioned five-step approach, revenues are recognized when the group
satisfies its performance obligations.

The group sells merchandise and products such as metals, automobiles, automotive
components, machinery, chemicals and foods. Performance obligations on the sales of goods are
satisfied at the point in time at which the control of the merchandise or product is transferred to a
customer. In other words, at the point in time at which the good is handed over to the customer
or inspected by the customer at the destination specified in the contract, the group has the right to
receive payment for the merchandise or products provided. Thus, the group recognizes revenues
at the point in time at which the significant risks and rewards in connection with ownership,
including the legal title and physical possession of the goods, as well as economic value of the
goods are transferred to the customers.

Further, the group engages in providing services, including construction contracts and
software development. For these transactions, the performance obligations are satisfied over time

5 Financial Section 2021, page 57- 59

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Financial Accounting 1 – Group FPT

based on the contract terms and conditions. The group measures progress toward complete
satisfaction of performance obligations for the purpose of depicting the group’s performance in
transferring control of goods or services promised to the customer, and recognizes revenues by
measuring the progress toward completion. Principally using input methods based on the costs
incurred for measuring progress, the group determines the appropriate method for measuring
progress after considering the details of each transaction as well as the nature of the goods or
services.

c. Gross versus net presentation of revenues

When the group acts as a principal in sales or service transactions, revenues are recognized
as the gross amount of consideration received. When the group acts as an agent, revenues are
recognized net. The group comprehensively determines whether it is a principal or an agent based
on the following three indicators:

- If the group has inventory risk before or after a customer’s order, during shipment or on
returning the goods;
- If the group has discretion in establishing the price for the specified goods or services, and
if the group’s benefits to be received from the goods or services are limited;
- If the group is primarily responsible for fulfilling the contract.
3.6.3. How does Toyota generate revenue?

Toyota generates the large majority of its revenue from its automotive business, which can
be further divided into separate sub segments based on brand and geographic focus. About 90%
of Toyota's revenue comes from automotive sales.

A smaller portion of the company's revenue is generated by its financial services department,
as well as other business operations.

Besides passenger vehicles, Toyota also manufactures forklift trucks and various other
machinery as well.

The company also earns revenue from its financial services branch and through a third, much
smaller wing that focuses on miscellaneous business.

3.6.4. Toyota's recorded revenue over the years 2020-2021:

Revenue will be recorded in the Income Statement, from Annual Income Statement from
2019 to 2020:

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Financial Accounting 1 – Group FPT

Sales of goods Sales of services and Total Revenue of Toyota

others (Millions of Yen)

2020 ¥ 6,578,920 ¥ 115,150 ¥ 6,694,071

2021 ¥ 6,182,737 ¥ 126,565 ¥ 6,309,303

(CU: Million Yens).

• Toyota annual revenue for 2021 was ¥ 6,309,303M, a 5.74% decrease from 2020.
• Toyota annual revenue for 2020 was ¥ 6,694,071M, a 1.01% decrease from 2019.
3.6.5. Some methods to increase sales of Toyota:

According to its 2019 Corporate Governance Report, the company has decided to focus in
the short term on fostering innovation, particularly in the areas of robotics and artificial
intelligence (AI), and on growing its business.

Among other goals, the company seeks to enhance the "connected" capability of its vehicles
and to create new mobility services going forward.

The company is also focused on sustainability and the environment: Toyota has set as a
goal the elimination of carbon dioxide emissions from its vehicles as of 2050.

In order to remain successful, the company must also continue to adapt. Although Toyota
enjoys tremendous name recognition and customer loyalty, changing tastes, new technologies,
and an invigorated sense of environmental responsibility on the part of customers require that
Toyota invest large amounts of money in developing new products and tools. If Toyota does not
anticipate how the automotive industry will change and react accordingly, it may lose business.

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PART 4: CONCLUSION
Toyota Tsusho Company is one of the multinational companies that apply IFRS accounting
standards in their financial statements. Through the thesis, we have a clear understanding of the
application of IFRS standards in the financial statements of Toyota Tsusho. From there, we have
a better understanding of the benefits as well as the disadvantages, then we have a more multi-
dimensional view of the standards.

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Financial Accounting 1 – Group FPT

REFERENCE
1. https://fortune.com/company/toyota-tsusho/global500/
2. https://www.toyota-tsusho.com/english/
3. https://www.toyota-tsusho.com/english/ir/pdf/library/integrated-report/fs2021_all.pdf

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Financial Accounting 1 – Group FPT

LIST OF PICTURE
Figure 1 – Global Network 6

Figure 2 – Metals Division’s Business Portfolio 7

Figure 3 – Business Lines of the Global Parts & Logistics Division 8

Figure 4 – Worldwide Operations and Regional Strategies 8

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Financial Accounting 1 – Group FPT

LIST OF MEMBER
1. Pham Thach Bich – Leader
2. Vu Thi Cam Nhung
3. Nguyen Chau Linh
4. Le Linh Chi
5. Vu Thi Ngoc Huyen

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