Wacom 2012 Annual Report Download - page 17

31
years beginning in the year after they arise. Actuarial
gains or losses are recognized as incurred in the
foreign consolidated subsidiaries.
(5)Foreign currency translation -
The Company’s functional currency is Japanese yen.
Assets and liabilities denominated in foreign currency
as of year-end are translated at the current exchange
rate. Exchange gains and losses resulting from foreign
currency transactions and the translation of assets and
liabilities denominated in foreign currencies are
included in the consolidated statements of income. All
assets, liabilities, income and expense accounts of
foreign subsidiaries are translated using the current
exchange rates at the respective balance sheet dates.
Foreign currency translation adjustments resulting
from such procedures are recorded in the consoli-
dated balance sheets as a separate component of net
assets.
(6)Amortization of goodwill -
Goodwill is amortized on a straight-line basis over its
remaining useful life.
(7)Cash and cash equivalents -
Cash and cash equivalents include all highly liquid
investments, generally with original maturities of three
months or less, those that are readily convertible to
known amounts of cash and, thus, present an insignifi-
cant risk of changes in value.
(8)Consumption taxes -
The consumption tax withheld upon sale and
consumption tax paid by the Companies on their
purchases of goods and services is not included in
revenue and cost or expense items in the accompany-
ing consolidated statements of income.
3. Changes in accounting policies:
Change in accounting principles and policies for the
year ended March 31, 2012 is as follows.
(Accounting for earnings per share)
The Company has adopted “Accounting Standard for
Earnings Per Share” (Accounting Standards Board of
Japan Statement No. 2 issued on June 30, 2010) and
“Guidance on Accounting Standard for Earnings Per
Share” (Accounting Standards Board of Japan Guid-
ance No. 4 issued on June 30, 2010) from the fiscal
year ended March 31, 2012.
In accordance with the guidance, the Company has
changed the method of calculating diluted earnings
per share. In this revised method, a portion of the fair
value of stock options, which relates to the services to
be rendered in the future, is included in the assumed
proceeds by the exercise of stock options.
This change was retroactively applied, and the diluted
earnings per share for the year ended March 31, 2011
has been restated.
The effect on earnings per share information is
presented in Note 21.
(Changes in revenue recognition)
The Company has changed the timing of rev recogni-
tion for the Company’s standard products to recognize
revenue at the point of arrival at the customer’s
location rather than upon shipment from the beginning
of fiscal year ended March 31, 2012. This change was
made to more accurately present profit and loss as we
concluded that it was more appropriate to recognize
revenue at the time of customer’s receipt as a result of
the current international harmonization of accounting
treatments and the review of our company structure
by the introduction of new accounting system.
This change has been retroactively applied and the
financial statements for the year ended March 31, 2011
were restated.
As a result, in consolidated balance sheets as of March
31, 2011 notes and accounts receivable-trade and
retained earnings decreased by ¥106,692 thousand
and ¥41,585 thousand, respectively, and merchandise
and finished goods and deferred tax assets (current
assets) increased by ¥37,727 thousand and ¥27,380
thousand, respectively. Also, in consolidated state-
ments of income for the year ended March 31, 2011 net
sales and cost of sales decreased by ¥44,818
thousand and ¥12,620 thousand, operating income,
ordinary income and income before income taxes
decreased by ¥19,418 thousand, respectively. In
consolidated statements of comprehensive income for
the year ended March 31, 2011 income before tax and
minority interests and comprehensive income
decreased by ¥19,418 thousand, respectively.
In consolidated statements of cash flows for the year
ended March 31, 2011 income before income taxes
decreased by ¥32,198 thousand, decrease (increase)
in notes and accounts receivable-trade increased by
¥44,818 thousand and decrease (increase) in invento-
ries decreased by ¥12,620 thousand.
Due to the cumulative effect of change in accounting
policy which was reflected to net assets balance at the
beginning of fiscal year ended March 31, 2011, the
retained earnings balance at the beginning in consoli-
dated statements of changes in net assets for the year
ended March 31, 2012 decreased by ¥22,166
thousand.
The effect on earnings per share information is
presented in Note 21.
32
March 31
2012
March 31
2012
Thousands of
U.S. dollars
Thousands of yen
Amount of overdraft limit
Utilized overdraft facilities
Net amount
¥2,000,000
-
¥2,000,000
¥2,000,000
-
¥2,000,000
$24,334
-
$24,334
March 31
2011
March 31
2012
March 31
2012
Thousands of
U.S. dollars
Thousands of yen
Notes receivable
Notes payable
¥ -
-
¥1,900
118,622
March 31
2011
24 issued on December 4, 2009) and “Guidance on
Accounting Standard for Accounting Changes and
Error Corrections” (Accounting Standards Board of
Japan Guidance No. 24 issued on December 4, 2009)
for accounting changes and error corrections
conducted from the fiscal year ended March 31, 2012.
6. Consolidated balance sheets:
Information regarding the consolidated balance sheets
as of March 31, 2011 and 2012 is as follows.
(1)Overdraft facility -
For effective funding to meet working capital
requirements, the Company has established overdraft
facilities with two banks. Unutilized overdraft facilities
under these contracts as of March 31, 2011 and 2012
are as follows:
(2)Notes maturing as of the fiscal year end -
Notes maturing as of the fiscal year end are settled on
the clearance date. Therefore, the following notes
which matured as of the fiscal year end have been
included in the fiscal year end balance sheets due to
the holiday of financial institutions.
Notes to Consolidated Financial Statements
$23
1,443
4. Changes in presentation methods:
Change in accounting principles and policies for the
year ended March 31, 2012 is as follows.
(Consolidated balance sheets)
“Accounts receivable-other”, which was presented
separately under current assets in the year ended
March 2011, is included in “Others” in the year ended
March 31, 2012 as its significance to the consolidated
balance sheets has decreased. To reflect this change,
the financial statements for the year ended March 31,
2011 have been reclassified. As a result, ¥1,562,297
thousand of “Accounts receivable-other” is reclassi-
fied to “Others” under current assets in the consoli-
dated balance sheets for the year ended March 31,
2011.
“Software”, which was included in “Others” under
intangible assets in the year ended March 31, 2011, is
presented separately in the year ended March 31, 2012
as its significance has increased to be greater than 5%
of total assets. To reflect this change, the financial
statements for the year ended March 31, 2011 have
been reclassified. As a result, ¥2,174,826 thousand of
“Others” is reclassified to ¥956,112 of “Software” and
¥1,218,714 of “Others” under intangible assets in the
consolidated balance sheets for the year ended March
31, 2011.
(Consolidated statements of income)
“Loss on disaster”, which was presented separately
under extraordinary loss in the year ended March 31,
2011, is included in “Others” in the year ended March
31, 2012 as its significance to the consolidated
statements of income has decreased. To reflect this
change, the financial statements for the year ended
March 31, 2011 have been reclassified. As a result,
¥197,212 thousand of “Loss on disaster” is reclassified
to “Others” under extraordinary loss in the
consolidated statements of income for the year ended
March 31, 2011.
(Consolidated statements of cash flows)
“Payments for lease and guarantee deposits” and
“Proceeds from collection of lease and guarantee
deposits”, which were included in “Others, net” in the
year ended March 31, 2011, have been presented
separately under net cash provided by (used in)
investing activities in the year ended March 31, 2012 as
their significance has increased. To reflect this change,
the financial statements for the year ended March 31,
2011 have been reclassified
As a result, ¥5,889 thousand of “Others” were
reclassified to (¥13,791) thousand of “Payments for
lease and guarantee deposits” and ¥19,680 thousand
of “Proceeds from collection of lease and guarantee
deposits” under net cash provided by (used in)
investing activities in the consolidated balance sheets
for the year ended March 31, 2011.
5. Additional information:
(Accounting for accounting changes and error
corrections)
The Company has adopted “Accounting Standard for
Accounting Changes and Error Corrections”
(Accounting Standards Board of Japan Statement No.