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“Accounting Standard for Retirement Benefits” (Accounting Standards Board of Japan Statement No. 26, issued May 17, 2012)
and “Guidance on Accounting Standard for Retirement Benefits” (Accounting Standards Board of Japan Guidance No. 25,
issued May 17, 2012)
(1) Overview
Actuarial gains and losses and prior service costs are required to be recognized in net assets at net of tax effects. Funded status is fully
recognized as a liability or asset on the balance sheet. With respect to the amortization method of the expected benefit, the benefit
formula basis is newly allowed as an option, in addition to the straight—line basis. In addition, the method for determining the discount
rate is amended.
(2) Date of adoption
The Company and its consolidated subsidiaries in Japan will adopt the accounting standards effective the fiscal year ending March 31,
2014. The standard and guidance will not be applied retrospectively to financial statements in the prior years.
(3) Impact of the adoption of the accounting standards
The Company and its consolidated subsidiaries in Japan are fully compliant with the Generally Accepted Accounting Principles in Japan.
The adoption of these standards is expected to have a significant impact on the consolidated financial statements of the Group. In the
consolidated balance sheet, the net assets are expected to decrease due mainly to the immediate recognition of the actuarial gains and
losses. Currently, it is difficult to estimate the financial impact.
“Employee Benefits” (IAS 19, issued June 16, 2011)
(1) Overview
Regarding remeasurements of the net defined benefit liability (asset), including actuarial gains and losses, the option to defer partial
recognition is eliminated, and immediate recognition through net assets, net of tax effects, is required. The funded status is recognized
as a liability or asset. The option to recycle actuarial gains and losses from other comprehensive income to profit and loss is also elimi-
nated. In addition, the net interest on the net defined benefit liability (asset) replaces the recognition of the interest cost and the
expected return on plan assets previously required.
(2) Date of adoption
The Company’s consolidated subsidiaries outside of Japan will adopt this accounting standard from the beginning of the fiscal year
ending March 31, 2014, as it will be effective from the fiscal year beginning January 1, 2013. The standard requires retrospective applica-
tion. The Group will therefore restate the corresponding financial statement for the year ending March 31, 2013 incorporating adjust-
ments for the impact of the adoption of this standard.
(3) Impact of the adoption of the accounting standard
The Company’s consolidated subsidiaries outside Japan prepare their financial statements in accordance with IFRS (International Finan-
cial Reporting Standards). Certain items, such as amortization of goodwill, are adjusted in the process of consolidation based on “Practi-
cal 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 issued February 19, 2010). Regarding the amortization of actuarial gains
and losses, no adjustment is allowed under the Practical Solution. Therefore, the Group has to date consolidated the amortization of
actuarial gains and losses in respect of defined benefit pension plans in subsidiaries outside Japan with no adjustment.
The amendment to IAS 19 is considered to have a significant impact on the Group’s consolidated financial statements. In the con-
solidated balance sheet, net assets are expected to decrease due mainly to the immediate full recognition of the actuarial gains and
losses. In the consolidated income statement, operating income is considered to be adversely impacted due to the increase in amortiza-
tion of actuarial gains and losses in the consolidated subsidiaries outside Japan*, and an increase in net periodic benefit cost caused by
the application of the net interest on the net defined benefit liability (asset). Currently, it is difficult to estimate the financial impact
from the changes in IAS 19 on the Group consolidated financial statements.
112 FUJITSU LIMITED ANNUAL REPORT 2012