Suzuki 2001 Annual Report Download - page 22

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 including the opening balance of shareholders' equity have been
presented in U.S. dollars by translating all Japanese yen amounts on the basis of ¥123.90 to U.S.$1, the
rate of exchange prevailing as of March 30, 2001. 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, 2001 and 2000, include the accounts
of the Company and its significant subsidiaries and the number of consolidated subsidiaries are 126 and 125
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)Financial instruments
Effective from the year ended March 31, 2001, the Company and its subsidiaries adopted the new Japanese
accounting standard for financial instruments, which is effective for periods beginning on or after April 1,
2000. As a result of the application of the new accounting standard, when compared with the case where a
previous standard was applied, both ordinary income and income before income taxes were increased by
1,580 million Yen.
①Marketable securities, investment in securities
Under the new standard, securities have to be classified into four categories; Trading securities, Held-to-
maturity debt securities, Investments of the Company in equity securities issued by unconsolidated
subsidiaries and affiliates and Other securities.
According to this classification, securities held by the Company and its subsidiaries are Other securities.
Other securities for which market quotations are available are stated at fair value by closing date's market
value method. Unrealized gains or losses are included in a component of shareholders' equity at a net-of-tax
amount, and gains or losses from sales of securities are recognized on cost determined by the moving average
method. Other securities for which market quotations are unavailable are stated at cost by a moving average
method. At the beginning of each fiscal year, the holding purpose of existing securities is reviewed and
securities within one year due is classified as current assets, and the others as investment in securities.
22 ●SUZUKI MOTOR CORPORATION
*ANNUAL REPORT2001/14のコピー 2