Toshiba 1998 Annual Report Download - page 42

40. Toshiba Corporation Annual Report 1998
SFAS No. 132 stan dardizes th e disclosure requirem en ts for pen sion s and oth er postretirem en t ben efits. In the case
of th e com pan y, SFAS No. 132 is effective for the fiscal year begin ning April 1, 1998.
Sin ce these FASB statements are prim arily disclosure oriented, th e com pany does not believe th at th e n ew standards
will h ave a m aterial effect on th e consolidated fin ancial position or operating results of the com pan y.
In March 1998, the American In stitute of Certified Public Accoun tants issued Statem ent of Position (SOP) 98-1,
“Accountin g for th e Costs of Com puter Software Developed or Obtain ed for Internal Use”. Th is SOP provides guid-
an ce on accounting for th e costs of com puter software developed or obtained solely to m eet th e com pany’s internal
needs an d, in th e case of the com pan y, is effective for th e fiscal year beginnin g April 1, 1999. At this stage, th e im pact
of adoption of this SOP on th e com pan y’s finan cial position or results of operations is n ot estim able.
Reclassifications –
Certain reclassifications of previously reported amoun ts have been made to conform with current classifications.
3. U.S. DOLLAR AMOUNTS:
U.S. dollar am ounts are included solely for convenience. These translation s should not be construed as representa-
tion s that th e yen amoun ts actually represent, or h ave been or could be con verted into, U.S. dollars. The amoun ts
sh own in U.S. dollars are n ot inten ded to be com puted in accordance with gen erally accepted accoun tin g prin ciples
for th e tran slation of foreign curren cy am ounts. The rate of ¥132=US$1, th e approxim ate curren t rate of exchan ge at
March 31, 1998, has been used th roughout for th e purpose of presentation of the U.S. dollar am ounts in th e accom -
pan ying consolidated fin ancial statem ents.
4. MARKETABLE SECURITIES AND OTHER INVESTMENTS:
The Finan cial Accounting Stan dards Board h as issued Statem ent of Fin ancial Accoun tin g Standards (SFAS) No. 115,
“Accountin g for Certain Investm en ts in Debt an d Equity Securities”, addressin g th e accounting an d reporting for
certain in vestm en ts in debt and equity securities classified as h eld-to-m aturity, tradin g, or available-for-sale securities.
Un der SFAS No. 115, the debt and equity securities owned by th e compan y sh ould be classified as available-for-sale
securities an d sh ould be reported at fair value with un realized gain s an d losses, net of related taxes, excluded from
earn ings and reported in a separate com pon ent of shareh olders’ equity until realized. However, th e com pany has not
adopted this standard which became effective for the fiscal year begin n ing April 1, 1994.
The effects on balan ce sheet item s of the com pan y’s departure from th e provisions of SFAS No. 115 as of March 31,
1998 an d 1997 are sum m arized as follows: Thousands of
Million s of yen U.S. dollars
March 31 1998 1997 1998
Sh areh olders’ equity as reported . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥1,201,615 ¥1,264,775 $9,103,144
Net in crease in th e carrying am ount of:
Marketable securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129,250 195,117 979,167
Other investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64,202 41,697 486,379
Net decrease in deferred tax assets:
Prepaid expenses an d other curren t assets . . . . . . . . . . . . . . . . (61,710) (100,197) (467,500)
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (30,614) (21,375) (231,924)
Net decrease in m in ority in terest . . . . . . . . . . . . . . . . . . . . . . . . . 149 132 1,128
Net in crease in investm en ts in affiliated com pan ies . . . . . . . . . . 3,054 8,678 23,136
Net un realized gain on available-for-sale securities . . . . . . . . . . . . . 104,331 124,052 790,386
Sh areh olders’ equity in accordan ce with accoun ting prin ciples
gen erally accepted in the United States of America . . . . . . . . . . . . ¥1,305,946 ¥1,388,827 $9,893,530
The net un realized gain on available-for-sale securities decreased by ¥19,721 m illion ($149,402 th ousand) and
¥58,265 m illion during th e years ended March 31, 1998 and 1997, respectively.