Suzuki 2001 Annual Report Download - page 24

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(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
The provision for income taxes is computed based on the pretax income included in consolidated
statements of income. The assets and liability approach is adopted to recognize deferred tax assets and
liabilities for the expected future tax consequences of temporary differences between the carrying amounts
and the tax bases of assets and liabilities.
(h)Reserve for retirement allowance
Effective from the year ended March 31, 2001, the Company and its subsidiaries adopted the new Japanese
accounting standard for retirement benefits, which is effective for periods beginning on or after April 1, 2000.
In accordance with the new standard, the reserve for retirement benefits as of March 31, 2001 represents the
estimated present value of projected benefit obligations in excess of the fair value of the plan assets except
that, as permitted under the new standard, the unrecognized transition amount arising from adopting the new
standard of 53,896 million yen at April 1, 2000 (the beginning of year) is amortized on a straight-line basis
over 5 years, and unrecognized actuarial differences are amortized on a straight-line basis over the
employees' average remaining service years from the next year in which they arise. As a result of the
application of the new accounting standard, when compared with the case where a previous standard was
applied, retirement benefits expenses was increased by 11,704 million Yen, ordinary income was decreased
by 911 million Yen, and income before income taxes was decreased by 11,691 million Yen.
(i)Revenue recognition
Sales of products are generally recognized in the accounts as delivery is made.
(j)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.
(k)Cash and cash equivalents
All highly liquid investments with original maturities of three months or less when purchased are
considered cash and cash equivalents.
(l)Reclassification
Certain reclassifications of previously reported amounts have been made to conform with current
classifications.
24 ●SUZUKI MOTOR CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
*ANNUAL REPORT2001/14のコピー 2