Honda 2007 Annual Report Download - page 84

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2. Basis of Translating Financial Statements
The consolidated financial statements are expressed in Japa-
nese yen. However, the consolidated financial statements as
of and for the year ended March 31, 2007 have been trans-
lated into United States dollars at the rate of ¥118.05 =
U.S.$1, the approximate exchange rate prevailing on the
Tokyo Foreign Exchange Market on March 31, 2007. Those
U.S. dollar amounts presented in the consolidated financial
statements and related notes are included solely for the
reader. This translation should not be construed as a repre-
sentation that all the amounts shown could be converted into
U.S. dollars.
3. Revisions of Classifications
finance subsidiaries, which were classified in other current
liabilities and deferred income taxes, have been revised to be
classified in other liabilities and other assets, respectively.
(d) The long-term portion of accrued expenses and prepaid
expenses related to pension benefit plans, which were
included in accrued expenses and other current assets have
been revised to be classified in other liabilities and other
assets, respectively. The long-term portion of deferred tax
liabilities, which were included in other current liabilities, and
deferred tax assets, have also been revised to classified in
other liabilities and other assets.
(e) The long-term portion of prepaid expenses, deferred
income and accrued expenses related to extended vehicle
service contracts of the subsidiaries in the United States,
which were included in other current assets, trade payables
accounts and accrued expenses, respectively, have been
revised to be classified in other liabilities and other assets.
The long-term portion of related deferred tax liabilities, which
were included in other current liabilities, and deferred income
taxes have also been revised to be classified in other
liabilities and other assets.
(f) Certain consolidated subsidiaries’ assets, which were clas-
sified in investment and advances—other, have been revised
to be classified in other assets.
Certain revisions for misclassifications have been made to
the prior years’ consolidated financial statements.
(a) Minority interest and minority interest in income, which
were included in other liabilities and other expenses-other,
respectively, have been revised to be disclosed indepen-
dently in consolidated balance sheets and consolidated
statements of income. Minority interest in income and cash
dividends paid to minority interests, which were included in
other liabilities and other, net, in cash flows from operating
activities, have been revised to be disclosed independently in
cash flows from operating activities and cash flows from
financing activities, respectively, in the consolidated state-
ments of cash flows.
(b) Auction rate securities, which were classified as cash
equivalents, have been revised to be classified as available-
for-sale securities due within one year, which are included in
other current assets in the consolidated balance sheets.
Payment for purchase of auction rate securities and pro-
ceeds from sales of auction rate securities have been revised
to be classified in payment for purchase of available-for-sale
securities and proceeds from sales of available-for-sale
securities in the consolidated statements of cash flows,
respectively.
(c) The long-term portion of deferred tax liabilities and
deferred tax assets related to the lease transactions of