Isuzu 2006 Annual Report Download - page 32

30
Financial Section
Isuzu Motors Limited Annual Report 2006
Thousands of
Millions of yen U.S. dollars
Net Income
Less: Components not pertaining to
common shareholders;
Dividend to preferred stock (Class II excluded)
Net income pertaining to common stock
Average outstanding shares:
Common stock (share):
Class IV preferred stock (share):
Thousands of
Millions of yen U.S. dollars
Cash and time deposits
on the consolidated balance sheet
Time deposits with original maturities
over three month at the time of purchase
Cash and cash equivalents on the
statement of cash flows
$ 924,853
(18,280)
$ 906,572
¥ 108,642
(2,147)
¥ 106,495
$501,887
5
4,971
$496,916
—
—
93,780
¥ 58,956
584
¥ 58,372
1,130,109,701
67,340,067
straight-line method over periods, which are shorter than the average
remaining years of service of the eligible employees.
(Additional Information)
On August 1, 2005, pension funds of several consolidated com-
panies obtained approval from the Minister of Health, Labor and
Welfare of exemption from the benefits related to future employee
service under the substitutional portion. Estimated plan assets to be
returned to the government on March 31,2006 were ¥3,791 million
($32,279 thousands). If the estimated plan assets had been returned to
the government on March 31,2006 and the transitional measurement
of accounting standard for employees’ retirement benefits as stipu-
lated in the Accounting Committees Report No.13, Article 44-2 by the
Japanese Institute of Certified Public Accountants had been adopted,
the effect of the adoption on the consolidated income statement for
the year ended March 31, 2006 would be ¥3,033 million ($25,820
thousands).
i) Income Taxes
Income taxes are accounted for on an accrual basis. Deferred tax
assets and liabilities are recognized for the future tax consequences
attributable to differences between the financial statement carrying
amounts of existing assets and liabilities and their respective tax bas-
es. Deferred tax assets and liabilities are measured using enacted tax
rates expected to apply to taxable income in the years in which those
temporary differences are expected to be recovered or settled. The
effect of deferred tax assets and liabilities of a change in tax rate are
recognized in income in the period that includes the enacted date.
j) Net Income per Share
Net income per share of common stock is calculated based upon the
weighted average number of shares of common stock outstanding
during each year. Under the revised financial statements regulations in
Japan, the weighted average number of shares is calculated based on
the number of issued shares less the number of treasury stocks from
the fiscal year ended March 31, 2002.
Effective from the fiscal year ended March 31, 2003, the Company
applied early adoption of the Financial Accounting Standard No. 2
“Financial Accounting Standard for Earnings per Share” and the
Financial Accounting Standard Implementation Guidance No. 4
“Implementation Guidance for Accounting Standard for Earnings
per Share” issued by the Accounting Standards Board of Japan on
September 25, 2002.
Basis for the calculation of net income per share at the year ended
March 31, 2006 is as follows:
k) Appropriation of Retained Earning
The appropriation of retained earnings is recorded in the fiscal year in
which such appropriation is approved by the shareholders meeting.
l) Cash and Cash Equivalents
For the purpose of the statement of cash flows, the Company consid-
ers all highly liquid investments with a maturity of three months or
less to be cash equivalents.
Reconciliation for cash and cash equivalents at end of the year on
the statement of cash flows for the years ended March 31, 2006 is as
follows:
m) Adoption of New Accounting Standards
From this fiscal year, the Company, its consolidated domestic subsid-
iaries and its equity method-applied domestic affiliates adopted the
new accounting standard for impairment of fixed assets (“Opinion
Concerning Establishment of Accounting Standard for Impairment
of Fixed Assets” issued by the Business Accounting Deliberation
Council on August 9, 2002) and the implementation guidance for
the accounting standard for impairment of fixed assets (the Financial
Accounting Standard Implementation Guidance No. 6 issued by the
Accounting Standards Board of Japan on October 31, 2003). The
effect of adopting the new accounting standard on the consoli-
dated statement of income for the year ended March 31, 2006 was
to decrease income before income taxes and minority interests by
¥2,600 million ($22,134 thousands). Also, the impaired fixed assets
are presented in the consolidated balance sheet net of accumulated
impairment.