Fujitsu 2014 Annual Report Download - page 151

Net deferred tax assets are included in the consolidated balance sheets as follows:
Yen
(millions)
U.S. Dollars
(thousands)
At March 31 2013 2014 2014
Current assets–Deferred tax assets ¥ 81,988 ¥ 81,360 $ 789,903
Investments and other non-current assets–Deferred tax assets 67,018 104,688 1,016,388
Current liabilities–Others (23) (147) (1,427)
Long-term liabilities–Deferred tax liabilities (33,781) (11,931) (115,835)
Net deferred tax assets ¥115,202 ¥173,970 $1,689,029
The Company and its wholly owned subsidiaries in Japan have adopted the consolidated tax return system of Japan.
In Japan, tax losses generated before March 31, 2008 and on and after April 1, 2008 can be carried forward up to 7 and 9 years,
respectively. Tax losses can be carried forward up to 20 years in the United States, and indefinitely in the United Kingdom.
Realization depends on the abilities of the companies to generate sufficient taxable income prior to the expiration of the tax loss
carryforwards. With respect to deferred tax assets, we recorded a valuation allowance to cover the amount in excess of what we are likely
to recover in the future.
Revisions in the Amounts of Deferred Tax Assets and Liabilities as a Result of a Change in the Corporate Tax Rate
On March 31, 2014, the Act to Partially Revise the Income Tax Act (Act No. 10 of 2014) was promulgated, according to which the Special
Reconstruction Corporation Tax will no longer be imposed with the fiscal year ended March 31, 2015. In addition, the Local Corporate Tax
Act (Act No. 11 of 2014) was also promulgated on March 31, 2014, according to which, with the fiscal year ended March 31, 2016, in
lieu of a reduction in the residents tax rate, a Local Corporate Tax that is considered a national tax will be imposed. For the year ended
March 31, 2014, the statutory income tax rate used for calculating deferred tax assets and deferred tax liabilities (limited to those
reversing after April 1, 2014) has been reduced from the previous fiscal year’s rate of 37.9% to 35.6%.
As a result, the amount of deferred tax assets (after subtracting deferred tax liabilities) decreased by ¥4,357 million ($42,301
thousand), and the amount of corporate tax adjustment recorded in the fiscal year ended March 31, 2014 increased by the same
amount. In addition, the amount of deferred tax assets (after subtracting deferred tax liabilities) increased by ¥1,697 million ($16,476
thousand), resulting in an increase of ¥1,667 million ($16,184 thousand) in remeasurements of defined benefit plans, net of taxes and
an increase of ¥30 million ($291 thousand) in unrealized gain and loss on securities, net of taxes, under net assets.
17. Business Combinations
No significant transactions.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
149
FUJITSU LIMITED ANNUAL REPORT 2014
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