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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Fujitsu Limited and Consolidated Subsidiaries
1. Significant Accounting Policies
(a) Basis of presenting consolidated financial statements and the principles of consolidation
The accompanying consolidated financial statements of Fujitsu Limited (the “Company”) and its consolidated sub-
sidiaries (together, the “Group”) have been prepared in accordance with the regulations under the Financial Instru-
ments and Exchange Law of Japan and accounting principles and practices generally accepted in Japan. The
consolidated subsidiaries outside Japan have adopted the accounting principles and practices in their respective
countries. In presenting the accompanying consolidated financial statements, certain items have been reclassified
for the convenience of readers outside Japan.
Certain accounting principles and practices generally accepted in Japan are different from International Finan-
cial Reporting Standards (“IFRS”) and accounting principles and practices in other countries in certain respects as to
applications and disclosure requirements.
The consolidated financial statements include the accounts of the Company and, with minor exceptions, those
of its majority-owned subsidiaries.
The acquisition of companies is accounted for by the purchase method. Goodwill represents the excess of the
acquisition cost over the fair value of the net assets of the acquired companies.
Investments in affiliates, with minor exceptions, are accounted for by the equity method.
<Changes in accounting principles and practices for the year ended March 31, 2006>
For the year ended March 31, 2006, Fujitsu Services Holdings PLC, a UK subsidiary, and its consolidated subsidiaries
(together, “FS”) have voluntarily adopted IFRS in line with listed companies in the EU. Prior to the adoption of IFRS,
FS had been applying the accounting principles and practices generally accepted in the UK. The amounts in the
consolidated financial statements prior to and for the year ended March 31, 2005, have not been restated.
For the year ended March 31, 2006, Fujitsu Telecommunications Europe Limited, another UK subsidiary, recog-
nized pension obligation which had not been recognized before in conformity with the new UK accounting stan-
dard for the retirement benefits (Financial Reporting Standard 17). The adoption of this standard, however, did not
have a material impact on net income for the year ended March 31, 2006.
As a result of the above changes, cumulative effect as of April 1, 2005 of ¥85,980 million had been charged to
retained earnings (deficit).
(b) Cash equivalents
Cash equivalents are considered to be short-term highly liquid investments with a maturity of three months or less
from the date of acquisition and an insignificant risk of fluctuation in value.
(c) Translation of foreign currency accounts
Receivables and payables denominated in foreign currencies are translated into Japanese yen at the foreign cur-
rency exchange rates in effect at the respective balance sheet dates.
The assets and liabilities accounts of the consolidated subsidiaries outside Japan are translated into Japanese
yen at the exchange rates in effect at the respective balance sheet dates. Income and expense accounts are trans-
lated at the average exchange rate during the year. The resulting translation adjustments are recorded in a separate
component of net assets as “foreign currency translation adjustments.”
093
ANNUAL REPORT 2008FUJITSU LIMITED