Pentax 2007 Annual Report Download - page 55

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because of high correlation and effectiveness between the hedg-
ing instruments and the hedged items, gains or losses on deriva-
tives are deferred until maturity of the hedged transactions.
Hedging instruments and hedged items as of March 31, 2007
were as follows:
Hedging instruments: Forward exchange contracts
Hedged items: Loans payable denominated in
foreign currency
p. Per Share Information—Basic net income per share is
computed by dividing net income available to common share-
holders by the weighted-average number of common shares
outstanding for the period, retroactively adjusted for stock splits.
Diluted net income per share reflects the potential dilution that
could occur if the outstanding stock options were exercised into
common stock. Diluted net income per share of common stock
assumes full exercise of the outstanding stock options at the
beginning of the year (or at the time of grant).
Cash dividends per share presented in the accompanying con-
solidated statements of income are dividends applicable to the
respective years including dividends to be paid after the end of
the year.
q. Accounting Standard for Presentation of Net Assets in the
Balance Sheet—Effective from the year ended March 31, 2007,
the Company and its consolidated subsidiaries adopted the new
accounting standard, “Accounting Standard for Presentation of
Net Assets in the Balance Sheet” (Statement No.5 issued by the
Accounting Standards Board of Japan on December 9, 2005), and
the implementation guidance “Guidance on Accounting Standard
for Presentation of Net Assets in the Balance Sheet” (Guidance
No.8 issued by the Accounting Standards Board of Japan on
December 9, 2005), (collectively, the “New Accounting
Standards”).
Under the New Accounting Standards, the balance sheet com-
prises three sections, which are the assets, liabilities and net
assets sections. Previously, the balance sheet comprised the
assets, liabilities, minority interests, as applicable, and the share-
holders’ equity sections.
The consolidated balance sheet as of March 31, 2006 has been
restated to conform to the 2007 presentation. There were no
effects on total assets or total liabilities from applying the New
Accounting Standards to the balance sheet as of March 31, 2006.
The adoption of the New Accounting Standards had no impact
on the consolidated statements of income for the years ended
March 31, 2007 and 2006.
r. Accounting Standard for Statement of Changes in Net
Assets—Effective from the year ended March 31, 2007, the
Company and its consolidated subsidiaries adopted the new
accounting standard, “Accounting Standard for Statement of
Changes in Net Assets” (Statement No.6 issued by the
Accounting Standards Board of Japan on December 27, 2005),
and the implementation guidance, “Guidance on Accounting
Standard for Statement of Changes in Net Assets” (Guidance
No.9 issued by the Accounting Standards Board of Japan on
December 27, 2005), (collectively, the “Additional New
Accounting Standards”).
Accordingly, the Company prepared the statements of changes
in net assets for the year ended March 31, 2007 in accordance
with the Additional New Accounting Standards. Also, the
Company voluntarily prepared the consolidated statement of
changes in net assets for 2006 in accordance with the Additional
New Accounting Standards. Previously, consolidated statements
of shareholders’ equity were prepared for the purpose of inclusion
in the consolidated financial statements although such statements
were not required under Japanese GAAP.
s. Accounting Standards for Business Combinations, Etc.—
Effective April 1, 2006, the Company and its consolidated subsid-
iaries adopted the new accounting standards, “Accounting
Standard for Business Combinations” (Business Accounting
Council Statement of Opinion, October 31, 2003) and “Accounting
Standard for Business Divestitures” (Statement No.7 issued by
the Accounting Standards Board of Japan on December 27,
2005), and the implementation guidance, “Guidance on
Accounting Standard for Business Combinations and Accounting
Standard for Business Divestitures” (Guidance No.10 issued by
the Accounting Standards Board of Japan on December 27,
2005).
Adoption of these standards has no impact on income for the
current fiscal year.
t. Accounting Standard for Directors’ Bonus—Effective April 1,
2006, the Company and its consolidated subsidiaries adopted the
new accounting standard, “Accounting Standard for Directors’
Bonus” (Statement No.4 issued by the Accounting Standards
Board of Japan on November 29, 2005).
As a result, operating income and income before income taxes
and minority interests for the current fiscal year decreased by ¥68
million, respectively.
Adoption of this standard has little impact on segment
information.