Fujitsu 2014 Annual Report Download - page 128

(l) Provision for product warranties
Provision for product warranties is recognized at the same period when related sales of the products are made at an amount which
represents the estimated cost, based on past experience, to repair or exchange certain products within the warranty period.
(m) Provision for construction contract losses
Provision for construction contract losses is recorded at the estimated amount of future losses on customized software or construction
contracts whose costs are probable to exceed total contract revenues.
(n) Provision for bonuses to board members
Provision for the bonuses to board members is recorded based on an estimated amount.
(o) Provision for loss on repurchase of computers
Certain computers manufactured by the Group are sold to JECC Corporation and other leasing companies for leasing to ultimate users
under contracts which require the Group to repurchase the computers if they are returned by the users after a certain period. Based
on past experience, an estimated amount for the loss arising from such repurchases is provided at the point of sales and is charged
to income.
(p) Provision for recycling expenses
A provision for anticipated recycling expenses has been made based on the regime for PC recycling enforced in Japan to prepare for
recycling expenses incurred upon collection of consumer PCs sold.
(q) Provision for restructuring charges
Provision for restructuring charges is recorded at the estimated amounts of losses incurred for the personnel rationalization and the
disposal of business.
(r) Provision for environmental measures
Provision for environmental measures, such as disposal of PCB (polychlorobiphenyl) embedded products and purification of soil, is
recorded at an estimated amount for future costs.
(Changes in presentation for the year ended March 31, 2014)
The provision for environmental measures, which as of March 31, 2013 was included in “Others” under current liabilities and “Others”
under non-current liabilities, has increased in its financial significance. Accordingly, as of March 31, 2014, it is presented separately on the
consolidated balance sheet. To reflect this change, consolidated balance sheet amounts as of March 31, 2013 have been reclassified.
As a result of the reclassification, the consolidated balance sheet amounts, as of March 31, 2013, of ¥251,731 million for “Others”
under current liabilities and ¥56,150 million for “Others” under non-current liabilities have been restated as ¥219 million for the provi-
sion for environmental measures and ¥251,512 million for “Others” under current liabilities and ¥5,453 million for the provision for
environmental measures and ¥50,697 million for “Others” under non-current liabilities.
(s) Retirement benefit plan
The Company and the majority of the consolidated subsidiaries have retirement benefit plans.
To prepare for disbursement of employees’ retirement benefits under the defined benefit plan, a defined benefit liability, which is
the amount of defined benefit obligations less plan assets based on the expected benefit obligation at the end of the fiscal year, is
recognized.
To attribute the expected benefit to periods of service, the Company and its subsidiaries in Japan attribute the benefit to periods of
service on a straight-line basis while the subsidiaries outside Japan do so under the plan’s benefit formula in accordance with “Employee
Benefits” (IAS 19, 16 June 2011).
Past service costs are amortized on a straight-line basis (over 10 years).
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
126 FUJITSU LIMITED ANNUAL REPORT 2014