Omron 1999 Annual Report Download - page 44

forward exchange contracts and currency options purchased and written that do not qualify for deferral for
accounting purposes are recognized in income on a current basis and recorded in Foreign exchange loss—
net in the consolidated statements of income.
Concentration of Credit Risk
Financial instruments which potentially subject the Companies to concentrations of credit risk consist
principally of short-term cash investments and trade receivables. The Companies place their short-term cash
investments with high-credit-quality financial institutions. Concentrations of credit risk with respect to trade
receivables, as approximately 75% of total sales are concentrated in Japan, are limited due to the large number
of well-established customers and their dispersion across many industries. Bad debts have been minimal. The
Company normally requires customers to deposit with it funds to serve as security for ongoing credit sales.
Guarantees
Contingent liabilities at March 31, 1999 with respect to loans guaranteed were ¥2,681 million ($22,157 thou-
sand), of which ¥1,400 million ($11,570 thousand) are jointly and severally guaranteed with other unrelated
companies.
The Companies applied SFAS No. 115 in the current year, and the prior years’ consolidated financial state-
ments have been restated. The following table presents a summary of the effects.
Consolidated Statements of Income:
Millions of yen
1998
As previously
reported As restated
Net income (due to a change in enacted tax rates) ......................................................... ¥18,300 ¥18,704
Net income per share (in yen):
Basic ............................................................................................................................ 69.8 71.4
Diluted.......................................................................................................................... 68.3 69.8
Consolidated Balance Sheets:
Millions of yen
1998
As previously
reported As restated
Short-term investments.................................................................................................. ¥ 4,767 ¥ 6,142
Investment securities...................................................................................................... 43,245 55,336
Deferred income taxes (liability)...................................................................................... 5,531 11,335
Retained earnings........................................................................................................... 174,282 174,686
Net unrealized gains on securities included in
accumulated other comprehensive income ................................................................. — 6,598
Shareholders’ equity....................................................................................................... 336,064 343,066
Consolidated Statements of Shareholders’ Equity:
Millions of yen
Net unrealized gains on securities
included in accumulated other
comprehensive income
As previously
reported As restated
Balance, April 1, 1996..................................................................................................... ¥— ¥15,736
Other comprehensive loss.......................................................................................... — (5,653)
Balance, March 31, 1997................................................................................................ — ¥10,083
Other comprehensive loss.......................................................................................... — (3,485)
Balance, March 31, 1998................................................................................................ ¥— ¥ 6,598
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15. Restatement
of Financial
Statements