Fujitsu 2010 Annual Report Download - page 139

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Management’s Report on Internal Control Over Financial Reporting
1. Basic Framework of Internal Control Over Financial Reporting
Masami Yamamoto, President and Representative Director of Fujitsu Limited (the “Company”), and Kazuhiko
Kato, Corporate Executive Vice President and Director and Chief Financial Officer of the Company, are respon-
sible for the design and operation of internal control over financial reporting for the Fujitsu Group’s consoli-
dated financial statements. The Fujitsu Group designs and operates its internal control over financial
reporting in accordance with guidelines set forth in “On the Setting of the Standards and Practice Standards
for Management Assessment and Audit concerning Internal Control Over Financial Reporting (Council Opin-
ions)” from the Business Accounting Council of the Financial Service Agency of Japan.
Internal control aims at achieving the objectives to a reasonable extent with the organized and integrated
function of basic individual components of internal control as a whole. There are inherent limitations to the
extent that internal control can be achieved. Such limitations include misjudgments and carelessness by indi-
viduals carrying out internal control activities, or fraud caused by the collusion of two or more individuals.
Accordingly, internal control may not completely prevent or detect misstatements in financial reporting.
2. Scope of Assessment, Assessment Date and Assessment Procedure
The Fujitsu Group performed an assessment of internal control over financial reporting for its consolidated
financial statements as of the end of the fiscal year, March 31, 2010, in accordance with generally accepted
assessment standards in Japan for internal control over financial reporting.
In making an assessment of the entire Fujitsu Group, including the parent company, Fujitsu Limited, and
its consolidated subsidiaries and equity method affiliates, the necessary scope of the assessment was deter-
mined from the perspective of material impact on the reliability of financial reporting. Within the scope of
assessment, the Company identified the risks of misstatement which would have a material impact on the
reliability of financial reporting and the controls which mitigate such risks to a reasonably accepted level, and
then assessed the effectiveness of the design and operation of those controls.
The Company determined that 129 consolidated companies and 1 equity method affiliate should be sub-
ject to the assessment of company-level controls, and financial closing and reporting process controls, taking
into account the degree of quantitative and qualitative impact on the consolidated financial statements.
With respect to process-level controls, considering the results of the assessment of company-level con-
trols, the Company designated 21 business locations that accounted for approximately two-thirds of the
aggregated sales for this fiscal year (before elimination of inter-company transactions) of the consolidated
companies as “significant business locations/units” which should be subject to the assessment.
137
FUJITSU LIMITED Annual Report 2010
Director’s Responsibility Statement Pursuant
to the U.K. DTR4/Management’s Report
on Internal Control Over Financial Reporting