Mazda 2013 Annual Report Download - page 42

Research and development costs
Research and development costs are charged to income when incurred. For the years ended March 31, 2013 and
2012, research and development costs were ¥89,930 million ($956,702 thousand) and ¥91,716 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, 2013 and 2012, only information on net income/(loss) per share of common stock
is provided without information on diluted net income/(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
(Accounting standards issued but not yet effective)
– Accounting Standard for Retirement Benefits (Accounting Standards Board of Japan (“ASBJ”) Statement No. 26,
May 17, 2012)
– Guidance on Accounting Standard for Retirement Benefits (ASBJ Guidance No. 25, May 17, 2012)
(1) Summary
Under the amended rule, actuarial gains and losses and past service costs that are yet to be recognized in profit or
loss would be recognized within the equity section, after adjustment for tax effects, and the deficit or surplus would
be recognized as a liability or asset without any adjustments. For determining the method of attributing expected
benefit to periods, the Standard now allows to choose benefit formula basis, as well as straight-line basis. Method for
determination of discount rate has also been amended.
(2) Effective dates
Effective for the end of annual periods ending on or after March 31, 2014. Amendments relating to determination of
retirement benefit obligations and current service costs are effective from the beginning of annual periods ending on
or after March 31, 2015.
(3) Effect of application of the standard
The Domestic Companies are currently in the process of determining the effects of these new standards on the con-
solidated financial statements.
Notes to Consolidated Financial Statements
Mazda Annual Report 2013
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