Pentax 2008 Annual Report Download - page 63

p. Per Share Information—Basic net income per share is computed by
dividing net income available to common shareholders 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 consolidated
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
comprises 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 shareholders’ 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 subsidiaries 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 year
ended March 31, 2007.
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 year ended March
31, 2007 decreased by ¥68 million, respectively. Adoption of this
standard has little impact on segment information.
u. Stock Option—Effective April 1, 2006, the Company and its
consolidated subsidiaries adopted the new accounting standard,
“Accounting Standard for Share-based Payment” (Statement No. 8
issued by the Accounting Standards Board of Japan on December 27,
2005) and the implementation guidance, “Guidance on Accounting
Standard for Share-based Payment” (Guidance No. 11 issued by the
Accounting Standards Board of Japan on December 27, 2005).
As a result, operating income and income before income taxes and
minority interests for the year ended March 31, 2007 decreased ¥167
million, respectively.
v. Reclassification and Restatement—Certain prior year amounts
have been reclassified to conform to the current year presentation.
Also, as described in Notes 2.q and 2.r, the consolidated balance
sheet for 2006 has been adapted to conform to new presentation rules
of 2007. Also, in lieu of the consolidated statement of shareholders’
equity for the year ended March 31, 2006, which was prepared on a
voluntary basis for inclusion in the 2006 consolidated financial
statements, the Company prepared the consolidated statement of
changes in net assets for 2006 as well as for 2007. These
reclassifications had no impact on previously reported results of
operations or retained earnings.
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