Suzuki 1998 Annual Report Download - page 22

Thousands of
Millions of yen U.S. dollars
1998 1997 1998
Finished goods ...................................................... ¥166,037 ¥124,220 $1,256,908
Work in process ..................................................... 18,106 20,512 137,067
Raw materials and others ..................................... 18,224 13,072 137,957
¥202,368 ¥157,805 $1,531,933
3. Inventories
Inventories as of 31st March, 1998 and 1997 were as follows:
Provision for additional depreciation is made to reflect use of machinery and
equipment in excess of normal production schedules, a substantial portion of which
is, however, not tax deductible.
Maintenance and repairs, including minor renewals and improvements, are charged to
income as incurred.
(f)Leases
Finance lease transactions, except for those which meet the conditions that the
ownership of the lease assets is substantially transferred to the lessee, are accounted
for on a basis similar to ordinary rental transactions.
(g)Income taxes
Income taxes are principally accounted for on an accrual basis. Deferred income taxes
pertaining to timing differences are recognized only insofar as they relate to the
elimination of unrealized inter-company profits and other adjustments for consolidation
purposes.
(h)Retirement and severance benefits
The Company and certain consolidated subsidiaries have a funded retirement and
severance pension plan and/or an unfunded retirement benefit plan, both of which cover
all of their employees.
The amount of the retirement and severance benefits is in general determined on the
basis of length of service and basic salary at the time of the retirement. The Company
and certain consolidated subsidiaries reserve retirement and severance allowances for
directors and statutory auditors. The liability for accrued retirement and severance
benefits shown on the consolidated balance sheet represents the retirement and severance
benefits accrued in respect of the unfunded plan of the Company and certain subsidiaries
at the amounts which would be required if all employees voluntarily retired at the balance
sheet date, plus the provisions for retirement and severance benefits of directors and
statutory auditors computed by the retirement and severance benefit rule of directors
and statutory auditors at the balance sheet date.
(i)Research and development expenses
Research and development expenses are charged to income as incurred.
(j)Revenue recognition
Sales of products are generally recognized in the accounts as delivery is made.
(k)Amounts per share
Primary net income per share is computed based on the weighted average number of shares
issued during the respective years.
Fully diluted net income per share is computed assuming that all convertible bonds at
the beginning of the year were converted into common stock, with an applicable adjustment
for related interest expense and net of tax.
Cash dividends per share are the amounts applicable to the respective periods
including dividends to be paid after the end of the period.
(l)Reclassification
Certain reclassifications of previously reported amounts have been made to conform
with current classifications.