Olympus 2002 Annual Report Download - page 33

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(j) Research and development
Expenses relating to research and development activities are charged to income as incurred. Total amounts charged to income were
¥30,477 million ($243,816 thousand), ¥30,848 million and ¥31,955 million for the years ended March 31, 2002, 2001 and 2000,
respectively.
(k) Certain lease transactions
Finance leases which do not transfer titles to lessees are accounted for in the same manner as operating leases.
(l) Income taxes
The Company adopts the accounting standard, which recognizes tax effects of temporary differences between the financial state-
ment carrying amounts and the tax basis of assets and liabilities. The provision for income taxes is computed based on the pretax
income included in the consolidated statement of income. The asset and liability approach is used to recognize deferred tax assets
and liabilities for the expected future tax consequences of temporary differences.
(m) Amounts per share
Basic earnings per share (EPS) is computed by dividing income available to common shareholders by the weighted-average number
of common shares outstanding for each fiscal year. Diluted EPS is similar to basic EPS except that the weighted-average of com-
mon shares outstanding is increased by the number of additional common shares that would have been outstanding if the poten-
tially dilutive common shares had been issued. For the years ended for March 31, 2002, 2001 and 2000, there were no dilutive
common shares. Accordingly, the Company’s basic and dilutive earnings per share computations are the same for the periods
presented.
Cash dividends per common share are the amounts applicable to the respective periods.
(n) Reclassification
Certain prior year amounts have been reclassified to conform to the current year presentation. These changes had no impact on
previously reported results of operations or shareholders’ equity.
2. MARKETABLE AND INVESTMENT SECURITIES
The following tables summarize acquisition costs, book values and fair value of securities with fair value as of March 31, 2002 and
2001:
Available-for-sale securities
Securities with book value (fair value) exceeding acquisition cost.
Millions of yen Thousands of U.S. dollars
2002 2001 2002
Acquisition cost Book value Difference Acquisition cost Book value Difference Acquisition cost Book value Difference
Equity securities......................... ¥ 2,155 ¥ 4,123 ¥1,968 ¥ 3,128 ¥ 5,899 ¥2,771 $ 17,240 $ 32,984 $15,744
Bonds ........................................ 10 10 0 34,980 35,007 27 80 80 0
Others ....................................... 35,773 35,845 72 ———286,184 286,760 576
Total ........................................ ¥37,938 ¥39,978 ¥2,040 ¥38,108 ¥40,906 ¥2,798 $303,504 $319,824 $16,320
Securities with book value (fair value) under acquisition cost.
Millions of yen Thousands of U.S. dollars
2002 2001 2002
Acquisition cost Book value Difference Acquisition cost Book value Difference Acquisition cost Book value Difference
Equity securities......................... ¥13,529 ¥10,770 ¥(2,759) ¥13,647 ¥11,179 ¥(2,468) $108,232 $ 86,160 $(22,072)
Bonds ........................................ 35,000 34,997 (3) ———280,000 279,976 (24)
Others ....................................... ———35,735 35,433 (302) ———
Total ........................................ ¥48,529 ¥45,767 ¥(2,762) ¥49,382 ¥46,612 ¥(2,770) $388,232 $366,136 $(22,096)
Note: The Company recognizes impairment loss when the fair market value of marketable and investment securities becomes less 50% than the acquisition cost at the end
of period. In addition, the loss is also recognized when the fair market value declines more than 30% but less than 50%, except when it is anticipated that the fair
market value is recoverable under the market conditions, trends of earnings and other key measures.