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38 SUZUKI MOTOR CORPORATION
Consolidated Financial Statements
Notes to Consolidated Financial Statements
NOTE 1:Basisofpresentingconsolidatednancialstatements
The accompanying consolidated nancial statements of Suzuki Motor Corporation (The Company), consolidated Subsidiaries,
and Aflites (The Group) have been prepared on the basis of generally accepted accounting principles and practices in Japan,
and the consolidated nancial statements were led with the Financial Services Agency as required by the Financial Instruments
and Exchange Act of Japan.
The preparation of the consolidated nancial statements requires the management to select and adopt accounting standards and
make estimates and assumptions that affect the reported amount of assets and liabilities, revenue and expenses, and the cor-
responding methods of disclosure.
As such, the management’s estimates are made reasonably based on historical results. But due to the inherent uncertainty in-
volved in making estimates, actual results could differ from these estimates.
For the convenience of readers outside Japan, certain reclassications and modications have been made to the original consoli-
dated nancial statements.
As permitted, an amount of less than one million yen has been omitted. For the convenience of readers, the consolidated nancial
statements, including the opening balance of shareholders’ equity, have been presented in US dollars by translating all Japanese yen
amounts on the basis of 102.92 to US$1, the rate of exchange prevailing as of March 31, 2014. Consequently, the totals shown in the
consolidated nancial statements (both in yen and in US dollars) do not necessarily agree with the sum of the individual amounts.
NOTE 2:Summaryofsignicantaccountingpolicies
(a) Principles of consolidation
The consolidated nancial statements for the years ended March 31, 2014 and 2013, include the accounts of The Group. And
the numbers of consolidated subsidiaries are 133 and 135 respectively. All signicant inter-company accounts and transac-
tions are eliminated in consolidation. Investments in afliated companies are accounted for by the equity method.
The difference at the time of acquisition between the cost and underlying net equity of investments in consolidated subsidiar-
ies (goodwill) and in afliated companies accounted for under the equity method is, as a rule, amortized on a straight-line
basis over a period of ve years after appropriate adjustments.
The account settlement date of 28 consolidated subsidiaries is December 31, but Magyar Suzuki Corporation Ltd. and 4 oth-
ers are consolidated based on the nancial statements of provisional account settlement as of March 31. Other 23 subsidiar-
ies are consolidated with the nancial statements based on their respective account settlement date.
The account settlement date of other consolidated subsidiaries is the same as the consolidated account settlement date.
(b) Allowance for doubtful accounts
In order to allow for loss from bad debts, estimated uncollectible amount based on actual ratio of bad debt is appropriated as
to general receivable. As for specic receivable with higher default possibility, recoverable amount is estimated respectively
and uncollectible amount is appropriated.
(c) Allowance for investment loss
The differences between the book value and the fair value of securities and investment not quoted at an exchange are deter-
mined and appropriated as reserve in order to allow for losses from these investments.
(d) Provision for product warranties
The provision is appropriated into this account based on the warranty agreement and past experience in order to allow for
expenses related to the maintenance service of products sold.
(e) Provision for directors’ bonuses
In order to defray bonuses for directors and company auditors, estimated amount of such bonuses is appropriated.
(f) Provisionforlossonliquidationofsubsidiariesandafliates
Reasonably estimated amount is appropriated for anticipated loss caused by liquidation and restructuring of businesses oper-
ated by subsidiaries and afliates.
(g) Provisionfordirectors’retirementbenets
The amount to be paid at the end of scal year had been posted pursuant to The Company’s regulations on the retirement
allowance of Directors and Company Auditors. However, The Company’s retirement benet system for them was abolished
at the closure of the Ordinary General Meeting of Shareholders held on June 2006. And it was approved at Ordinary General
Meeting of Shareholders that reappointed Directors and Company Auditors were paid their retirement benet at the time of
their retirement, based on their years of service. Estimated amount of such retirement benets is appropriated at the end of the
current consolidated scal year. Furthermore, for the Directors and Company Auditors of some consolidated subsidiaries, the
amount to be paid at the end of the year was posted pursuant to their regulation on the retirement allowance of Directors and
Company Auditors.