Canon 2006 Annual Report Download - page 68

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66
(2) Basis of Financial Statement Translation
The consolidated financial statements presented herein are
expressed in Japanese yen and, solely for the convenience of
the reader, have been translated into United States dollars at
the rate of ¥119= U.S.$1, the approximate exchange rate
prevailing on the Tokyo Foreign Exchange Market on December
29, 2006. This translation should not be construed as a repre-
sentation that the amounts shown could be converted into
United States dollars at such rate.
not have a material impact on Canon’s consolidated results of
operations and financial condition.
In February 2007, the FASB issued SFAS No. 159, “The Fair
Value Option for Financial Assets and Financial Liabilities—
Including an amendment of FASB Statement No. 115”
(“SFAS 159”). SFAS 159 provides companies with an option
to report selected financial assets and liabilities at fair value.
Unrealized gains and losses on items for which the fair value
option has been elected will be recognized in earnings. SFAS
159 is effective for fiscal years beginning after November 15,
2007 and is required to be adopted by Canon in the first quarter
beginning January 1, 2008. Canon is currently evaluating the
effect that the adoption of SFAS 159 will have on its consoli-
dated results of operations and financial condition but does not
expect SFAS 159 to have a material impact.
(y) Reclassification
Certain reclassifications have been made to the prior years’ con-
solidated financial statements to conform with the presentation
used for the year ended December 31, 2006.
Thousands of
Millions of yen U.S. dollars
2006 2005 2004 2006
December 31:
Total assets ¥1,995,927 1,751,011 1,500,197 $16,772,496
Net assets 907,845 767,711 632,657 7,628,950
Year ended December 31:
Net sales ¥3,119,102 2,774,443 2,548,700 $26,210,941
Net income 114,916 81,916 70,227 965,681
(3) Foreign Operations
Amounts included in the consolidated financial statements
relating to subsidiaries operating in foreign countries are
summarized as follows:
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED
CANON INC. AND SUBSIDIARIES