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Actuarial gains and losses are amortized on a straight-line basis (over the expected average remaining service period of employees)
from the year after the actuarial gains and losses are recognized.
(Changes in presentation for the year ended March 31, 2014)
As a result of the application of IAS 19 “Employee Benefits” (issued June 16, 2011) for the year ended March 31, 2014, the method of
presentation has changed. In addition, together with the change in the method of presentation, the method of presentation for “Prepaid
pension cost” and “Accrued retirement benefits” for the Company and its consolidated subsidiaries in Japan has been changed. Further,
the change in the amount of accrued retirement benefits and prepaid pension costs, which were included in “Increase (decrease) in
provisions” and “Other, net,” respectively, in the consolidated statements of cash flows, are presented as “Retirement benefit expenses
(net of contribution)” to show net increase or decrease in the net defined benefit liability (asset). To reflect these changes in the method
of presentation, the consolidated financial statements for the year ended March 31, 2013 have been reclassified.
As a result of the reclassification, in the consolidated balance sheets as of March 31, 2013, ¥180,121 million in “ Prepaid pension
costs” under “Investments and other non-current assets” and ¥178,482 million in “Accrued retirement benefits” under “Long-term liabili-
ties” have been reclassified as ¥51,393 million in “Net defined benefit asset” under “Investments and other non-current assets” and
¥207,125 million in “Net defined benefit liability” under “Long-term liabilities,” ¥(7,006) million in retained earnings under “Sharehold-
ers’ equity,” ¥(641) million in “Foreign currency translation adjustments” and ¥(149,724) million in “Remeasurements of defined benefit
plans, net of taxes” under “Accumulated other comprehensive income.”
In addition, in the consolidated statements of cash flows for the year ended March 31, 2013, ¥(45,113) million in “Income (loss)
before income taxes and minority interests,” ¥41,771 million in “Increase (decrease) in provisions” and ¥(137,905) million in “Other, net”
under “Cash flows from operating activities” are reclassified as ¥(52,119) million in “Income (loss) before income taxes and minority
interests,” ¥46,027 million in “Increase (decrease) in provisions,” ¥(116,484) million in “Retirement benefit expenses (net of contribu-
tion)” and ¥(18,671) million in “Other, net,” respectively.
(t) Income taxes
The Group has mainly adopted the asset and liability method of tax effect accounting in order to recognize income tax effect of all tem-
porary differences in the recognition of assets and liabilities for tax and financial reporting purposes.
(u) Earnings per share
Basic earnings per share is computed based on the weighted average number of shares of common stock outstanding during the respec-
tive years.
Diluted earnings per share is computed based on the weighted average number of shares after consideration of the dilutive effect of
the shares of common stocks issuable upon the exercise of subscription rights to shares and the conversion of convertible bonds.
(v) Accounting standards issued but not yet effective
The following accounting standards were issued but not yet effective up to June 23, 2014, the filing date of the Annual Securities Report,
regulated by the Financial Instruments and Exchange Law of Japan. The Group has not yet applied these standards as of March 31, 2014.
“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
With respect to the amortization method of the expected benefit, the plan’s benefit formula basis is newly allowed as an option, in
addition to the straight-line basis. In addition, with respect to the period that is a basis for determining the discount rate, it was required
to use an average period based on the expected date of benefit payment, but it is now required to use the discount rate that reflects the
estimated timing and amount of benefit payments so that retirement benefit obligations, which comprise payments of different timing
and amounts, are discounted more appropriately.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
127
FUJITSU LIMITED ANNUAL REPORT 2014
MANAGEMENT FACTS & FIGURESRESPONSIBILITYPERFORMANCE