Mazda 2008 Annual Report Download - page 73

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Accounting for Share-based Payment
Commencing in the year ended March 31, 2007, the Domestic Companies adopted ASBJ Statement No. 8,
Accounting Standard for Share-based Payment, issued by the ASBJ on December 27, 2005 and the ASBJ Guidance
No. 11 (revised 2006), Guidance on Accounting Standard for Share-based Payment, last revised by the ASBJ on May
31, 2006.
The effects of adopting the new standard for the year ended March 31, 2007 were to decrease operating income
and income before taxes by ¥67 million. The effects of adopting the new standards on the segment information are
discussed in the applicable section of the notes to the consolidated financial statements.
Accounting Standard for Presentation of Equity in the Balance Sheet
Effective from the year ended March 31, 2007, the Domestic Companies adopted the new accounting standard,
“Accounting Standard for Presentation of Net Assets in the Balance Sheet” (Statement No. 5 issued by the ASBJ
on December 9, 2005), and the “Implementation Guidance on Accounting Standard for Presentation of Net Assets
in the Balance Sheet” (the Financial Accounting Standard Implementation Guidance No. 8 issued by the ASBJ on
December 9, 2005), (collectively, “the New Accounting Standards”). Also, commencing in the year ended March 31,
2007, Domestic Companies adopted “Accounting Standard for Treasury Shares and Appropriation of Legal Reserve”
(Statement No. 1 issued by the ASBJ on August 11, 2006), and “Guidance on Accounting Standard for Treasury
Shares and Appropriation of Legal Reserve” (Guideline No. 2 issued by the ASBJ on August 11, 2006).
Under the New Accounting Standards, the following items are presented differently at March 31, 2007 compared
to March 31, 2006. The equity section includes net gain/loss on derivative instruments, net of taxes. Under the
previous presentation rules, gain/loss on derivative instruments were included in the assets or liabilities section
without considering the related income tax effects. Stock acquisition rights and minority interests are included in the
equity section at March 31, 2007. Under the previous presentation rules, companies were required to present minority
interests in between the long-term liabilities and the shareholders’ equity sections.
The adoption of the New Accounting Standards had no impacts on the consolidated statement of income for the
year ended March 31, 2007. In the calculation of the equity ratio and the equity per share, the stock acquisition rights
and the minority interests are excluded from equity.
Accounting for leases
Commencing in the year ended March 31, 2008, the Domestic Companies early adopted the ASBJ Statement No.13,
Accounting Standard for Lease Transaction, and ASBJ Guideline No.16, Guidance on Accounting Standard for
Lease Transaction, originally issued by the Business Accounting Deliberation Counsel on June 17, 1993 and by the
Japanese Institute of Certified Public Accountants on January 18, 1994, respectively, and both revised by the ASBJ
on March 30, 2007. Early adoption of ASBJ Statement No. 13 and ASBJ Guideline No. 16 is permitted as of the
beginning of a fiscal year that begins on or after April 1, 2007.
The effects of adopting the new standards on the consolidated balance sheet as of March 31, 2008 were to
increase property, plant and equipment and intangible fixed assets by ¥33,862 million ($338,620 thousand) and ¥15
million ($150 thousand) respectively, and to increase current liabilities and long-term liabilities by ¥12,448 million
($124,480 thousand) and ¥22,505 million ($225,050 thousand) respectively. In addition, the effects of adopting
the new standards on the consolidated statement of income for the year ended March 31, 2008, were to increase
operating income by ¥1,199 million ($11,990 thousand), and to decrease income before income taxes by ¥918 million
($9,180 thousand).
Through the year ended March 31, 2007, in the consolidated statement of cash flows, all payments of lease fees
were included in the cash flows from operating activities. Commencing in the year ended March 31, 2008, however,
those portions that constitute payment of lease obligations are included in the cash flows from financing activities.
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