Casio 2016 Annual Report Download - page 28

Annual Report 2016 / 4627
CONTENTS
To Our Stakeholders Prole Special Features ESG Information Financial Section Corporate Data
Reclassifications
Certain reclassifications have been made in the 2015 consolidated financial statements to conform to the
2016 presentation.
Changes in accounting policies
The Company and its domestic subsidiaries adopted “Revised Accounting Standard for Business
Combinations” (ASBJ Statement No. 21, September 13, 2013 (hereinafter, “Statement No. 21”)), “Revised
Accounting Standard for Consolidated Financial Statements” (ASBJ Statement No. 22, September 13,
2013 (hereinafter, “Statement No. 22”)) and “Revised Accounting Standard for Business Divestitures” (ASBJ
Statement No. 7, September 13, 2013 (hereinafter, “Statement No. 7”)) (together, the “Business
Combination Accounting Standards”), from the current fiscal year. As a result, the Company changed its
accounting policies to recognize in capital surplus the differences arising from the changes in the
Company’s ownership interest of subsidiaries over which the Company continues to maintain control and to
record acquisition related costs as expenses in the fiscal year in which the costs are incurred. In addition,
for business combinations taking place on or after 1 April, 2015, the Company changed its accounting
policy for the reallocation of acquisition costs due to the completion following provisional accounting to
reflect such reallocation in the consolidated financial statements for the fiscal year in which the business
combination took place. The Company also changed the presentation of net income and the term “non-
controlling interests” is used instead of “minority interests.” Certain amounts in the prior year comparative
information were reclassified to conform to such changes in the current year presentation.
With regard to the application of the Business Combination Accounting Standards, the Company followed
the provisional treatments in article 58-2(4) of Statement No. 21, article 44-5(4) of Statement No. 22 and
article 57-4(4) of Statement No. 7 with application from the beginning of the current fiscal year prospectively.
In the consolidated statements of cash flows, cash flows from acquisition or disposal of shares of
subsidiaries with no changes in the scope of consolidation are included in “Cash flows from financing
activities,” and cash flows from acquisition related costs for shares of subsidiaries with changes in the scope
of consolidation or costs related to acquisition or disposal of shares of subsidiaries with no changes in the
scope of consolidation are included in “Cash flows from operation activities.”
There is no effect on the consolidated financial statements and the amounts per share of the current fiscal year.
Accounting standard and guidance that are yet to be adopted
“Revised Implementation Guidance on Recoverability of Deferred Tax Assets” (ASBJ Guidance No. 26, March
28, 2016 (hereinafter, “Guidance No. 26”)
(1) Overview
Following the framework in Auditing Committee Report No. 66 “Audit Treatment regarding the Judgment of
Recoverability of Deferred Tax Assets,” which prescribes estimation of deferred tax assets according to the
classification of the entity according to one of five types, the following statements were changed as necessary:
1. Treatment for an entity that does not meet any of the criteria in types 1 to 5;
2. Criteria for types 2 and 3;
3. Treatment for deductible temporary differences, which an entity classified as type 2 and is unable to schedule;
4. Treatment for the period, which an entity classified as type 3 is able to reasonably estimate, with respect
to future taxable income before consideration of taxable or deductible temporary differences that exist at
the end of the current fiscal year; and
5. Treatment when an entity classified as type 4 also meets the criteria for types 2 or 3
(2) Effective date
Effective from the beginning of the fiscal year ending March 31, 2017
(3) Effects of application of the Guidance
There is no effect of application of the Guidance on the consolidated financial statements.
3. Cash and Cash Equivalents
(1) Cash and cash equivalents at March 31, 2016 and 2015:
Millions of Yen
Thousands of
U.S. Dollars
(Note 1)
2016 2015 2016
Cash and deposits ..................................................................... ¥ 66,648 ¥ 82,806 $ 589,805
Time deposits over three months ................................................ (345) (939) (3,053)
Debt securities within three months to maturity ............................ 55,600 17,110 492,036
Short-term loans receivable with resale agreement....................... 6,154 11,760 54,460
Cash and cash equivalents ......................................................... ¥128,057 ¥110,737 $1,133,248
(2) Significant non-cash transactions
1) Assets and obligations relating to finance lease transactions
Millions of Yen
Thousands of
U.S. Dollars
(Note 1)
2016 2015 2016
Assets relating to finance lease transactions ................................ ¥833 ¥607 $7,372
Obligations relating to finance lease transactions ......................... 893 650 7,903
Notes to Consolidated Financial Statements