Brother International 2007 Annual Report Download - page 20

Download and view the complete annual report

Please find page 20 of the 2007 Brother International annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 48

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48

18 Brother Annual Report 2007
Notes to Consolidated Financial Statements
Brother Industries, Ltd. and Consolidated Subsidiaries
For the Years ended March 31, 2007 and 2006
1. Basis of Presenting Consolidated Financial Statements
The accompanying consolidated financial statements have been prepared in accordance with the
provisions set forth in the Japanese Securities and Exchange Law and its related accounting regu-
lations and in conformity w ith accounting principles generally accepted in Japan, w hich are different
in certain respects as to application and disclosure requirements of International Financial
Reporting Standards.
On December 27, 2005, the Accounting Standards Board of Japan (the “ ASBJ” ) published a
new accounting standard for the statement of changes in equity, w hich is effective for fiscal years
ending on or after M ay 1, 2006. The consolidated statement of shareholders' equity, which w as
previously voluntarily prepared in line with the international accounting practices, is now required
under generally accepted accounting principles in Japan and has been renamed “ the consolidated
statement of changes in equity” in the current fiscal year.
In preparing these consolidated financial statements, certain reclassifications and rearrangements
have been made to the consolidated financial statements issued domestically in order to present
them in a form w hich is more familiar to readers outside Japan. In addition, certain reclassifications
have been made in the 2006 financial statements to conform to the classifications used in 2007.
The consolidated financial statements are stated in Japanese yen, the currency of the country
in w hich BROTHER INDUSTRIES, LTD. (the "Company") is incorporated and operates. The translations
of Japanese yen amounts into U.S. dollar amounts are included solely for the convenience of
readers outside Japan and have been made at the rate of ¥ 118 to $1, the approximate rate of
exchange at M arch 31, 2007. Such translations should not be construed as representations that
the Japanese yen amounts could be converted into U.S. dollars at that or any other rate.
2. Summary of Significant Accounting Policies
(1) Consolidation
The Company has 75 (77 in 2006) subsidiaries at M arch 31, 2007. The accompanying consolidated
financial statements as of M arch 31, 2007 include the accounts of the Company and its significant
54 (52 in 2006) subsidiaries (together, the "Group"). The remaining 21 unconsolidated subsidiaries'
combined assets, net sales, net income and retained earnings in the aggregate are not significant
in relation to those of the consolidated financial statements of the Group.