Suzuki 2000 Annual Report Download - page 23

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1.Basis of presenting consolidated financial statements
The accompanying consolidated financial statements of SUZUKI MOTOR CORPORATION (the
Company) have been prepared on the basis of generally accepted accounting principles and practices in
Japan, and from the consolidated financial statements filed with the Ministry of Finance as required by the
Securities and Exchange Law of Japan.
Certain reclassifications and modifications have been made to the original consolidated financial
statements for the convenience of readers outside Japan. In addition, the consolidated statements of
shareholders’ equity have been prepared as additional information, although such statements are not
required in Japan, and the notes include information which is not required under generally accepted
accounting principles and practices in Japan.
As permitted, amount of less than one million yen have been omitted. For the convenience of readers, the
consolidated financial statements have been presented in U.S. dollars by translating all Japanese yen
amounts on the basis of ¥106.15 to U.S.$1, the rate of exchange prevailing as of March 31, 2000.
Consequently, the totals shown in the consolidated financial statements (both in yen and in U.S. dollars) do
not necessarily agree with the sum of the individual amounts.
2.Summary of significant accounting policies
(a)Principles of consolidation
The consolidated financial statements for the years ended March 31, 2000 and 1999, include the accounts
of the Company and its significant subsidiaries and the number of consolidated subsidiaries are 125 and
135 respectively. All significant inter-company accounts and transactions are eliminated in consolidation.
Investments in affiliated companies are accounted for by the equity method.
As for the evaluation of assets and liabilities of consolidated subsidiaries, the complete market value
accounting method is adopted. The difference at the time of acquisition between the cost and underlying
net equity of investments in consolidated subsidiaries and in affiliated companies accounted for under the
equity method is, as a rule, amortized over a period of five years after appropriate adjustments.
(b)Foreign currency translations
Current receivables and payables in foreign currencies of domestic companies are translated into
Japanese yen at the exchange rates as of the balance sheet date, and other assets in foreign currencies are
translated at the historical rates. Revenue and costs are translated at the exchange rates prevailing during
the year. Gains or losses resulting from translation of foreign currency transactions are credited or charged
to income as incurred.
The Accounting Standard for Foreign Currency Transaction etc. is adopted for the translation of the
financial statements of the consolidated overseas subsidiaries. Translation differences are shown as
“Foreign currency translation adjustments”in the consolidated balance sheets. Foreign currency
translation adjustments indicated at the bottom of “Assets” so far, but from this fiscal year, have been
indicated in “Shareholders’ equity”.