Mazda 2012 Annual Report Download - page 42

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Research and development costs
Research and development costs are charged to income when incurred. For the years ended March 31, 2012 and
2011, research and development costs were ¥91,716 million ($1,118,488 thousand) and ¥90,961 million, respectively.
Derivatives and hedge accounting
Derivative financial instruments are mainly stated at fair value, and changes in the fair value are recognized as gains
or losses unless derivative financial instruments are used for hedging purposes and meet criteria for hedge
accounting.
If derivative financial instruments are used as hedges and meet certain hedging criteria, recognition of gains or
losses resulting from changes in the fair value of derivative financial instruments is deferred until the related losses
or gains on the hedged items are recognized.
Also, if interest rate swap contracts are used as hedges and meet certain hedging criteria, the net amount to be
paid or received under the interest rate swap contract is added to or deducted from the interest on the assets or
liabilities for which the swap contract was executed.
Amounts per share of common stock
The computations of net income or loss per share of common stock are based on the average number of shares
outstanding during each fiscal year. Diluted net income per share of common stock is computed based on the
average number of shares outstanding during each fiscal year after giving effect to the diluting potential of common
stock to be issued upon the exercise of stock acquisition rights and stock options.
For the years ended March 31, 2012 and 2011, only information on net loss per share of common stock is
provided without information on diluted net loss per share of common stock to reflect the diluting effect in accordance
with the applicable provisions of Japanese GAAP.
Cash dividends per share represent amounts applicable for the respective years on an accrual basis.
Reclassifications
Certain amounts in the prior year’s consolidated financial statements have been reclassified to conform to this year’s
presentation.
3 ADOPTION OF NEW ACCOUNTING STANDARDS AND ACCOUNTING CHANGES
None.
Additional Information
(Adoption of Accounting Standards for Accounting Changes and Error Corrections)
The Company and its consolidated domestic subsidiaries adopted “Accounting Standard for Accounting Changes
and Error Corrections” (ASBJ Statement No.24 issued on December 4, 2009) and “Guidance on Accounting
Standard for Accounting Changes and Error Corrections” (ASBJ Guidance No.24, issued on December 4, 2009) for
accounting changes and corrections of prior period errors which are made from the fiscal year beginning on April 1,
2011.
Notes to Consolidated Financial Statements
Mazda Annual Report 2012
40