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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 subsidiaries (together, the
“Group”) have been prepared in accordance with the regulations under the Financial Instruments and Exchange Law of Japan and account-
ing principles and practices generally accepted in Japan. In presenting the accompanying consolidated financial statements, certain items
have been reclassified for the convenience of readers outside Japan.
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, 2009>
For the year ended March 31, 2009, the Group has adopted the “Practical Solution on Unification of Accounting Policies Applied to Foreign
Subsidiaries for Consolidated Financial Statements” (Accounting Standards Board of Japan, Practical Issues Task Force, No. 18 dated May 17,
2006), which was applied in Japan. The impact of this change on operating income and income (loss) before income taxes and minority
interests for the year ended March 31, 2009, was insignificant.
IFRS had been applied firstly to Fujitsu Services Holdings PLC in the UK and its subsidiaries for the year ended March 31, 2006, and then,
to several subsidiaries outside Japan such as those in Australia and Singapore. Finally, for the year ended March 31, 2009, IFRS has been
applied to all the subsidiaries outside Japan.
For such subsidiaries adopting IFRS for the year ended March 31, 2009, this change in accounting principles and practices modified their
accounting procedures retroactively which decreased the consolidated retained earnings by ¥1,585 million as of the beginning of the year
ended March 31, 2009.
(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 acquisi-
tion 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 currency 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 translated 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.”
(d) Revenue recognition
Revenue from sales of IT systems and products excluding customized software under development contracts (the “customized software”) is
recognized upon acceptance by the customers, whereas, revenue from sales of personal computers, other equipment and electronic devices
is recognized when the products are delivered to the customers. Revenue from sales of the customized software is recognized by reference
to the percentage-of-completion method.
<Changes in accounting principles and practices for the year ended March 31, 2009>
For the year ended March 31, 2009, the Company and its subsidiaries in Japan adopted the “Accounting Standard for Construction Contracts”
(Accounting Standards Board of Japan, Statement No. 15 dated December 27, 2007) which was newly applied in Japan.
The impact of this change on sales, operating income and income (loss) before income taxes and minority interests for the year ended
March 31, 2009, was insignificant because the Group had already applied the percentage-of-completion method to revenue recognition for
the customized software, a core business of the Group.
103
FUJITSU LIMITED Annual Report 2010
Consolidated Statements of Cash
Flows/Notes to Consolidated
Financial Statements