Epson 2011 Annual Report Download - page 59

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58
method.
Accounting for this transaction was based on the “Accounting Standard for Business Combinations” issued by
the Business Accounting Council on October 31, 2003 and on the “Guidance on Accounting Standard for
Business Combinations and Accounting Standard for Business Divestitures” issued by ASBJ on November 15,
2007.
(2) Business Transfer
(a) LCDs business transfer
As of April 1, 2010, Epson transferred a part of its business and some assets in the field of small- and
medium-sized liquid crystal displays (“LCDs”) to Sony Corporation (“Sony”) and Sony Mobile Display
Corporation (“SMD”). In a changing market environment, Epson had found it difficult to distinguish its small-
and medium-sized display business from the competition, and judged that transferring the aforementioned
business to the Sony Group was the most appropriate way of optimizing its liquid crystal technologies and
amorphous silicon TFT production capability.
Outline of transfer
Date of transfer: April 1, 2010
Gain on business transfer: ¥513 million ($6,169 thousand)
Carrying amounts of assets and liabilities transferred:
Millions of yen
Thousands of
U.S. dollars
Current assets ¥3,604 $43,355
Noncurrent assets 228 2,742
Total ¥3,833 $46,097
Current liabilities ¥231 $2,778
Noncurrent liabilities 54 649
Total ¥285 $3,427
The business transferred was included in the electronic devices segment.
(b) The subsidiary’s equity transfer
As of February 2, 2011, the Company and Sony executed an agreement for transferring all of the equity of
Suzhou Epson Co., Ltd. (“Suzhou Epson”), to the Sony Group. As part of its SE15 long-range corporate vision
and mid-range business plan, Epson is completing business structure reforms in its small- and medium-sized
TFT LCD business. In implementing these reforms, in April 2010 Epson transferred to the Sony Group certain