Casio 2004 Annual Report Download - page 36

34 CASIO COMPUTER CO., LTD.
11. SHAREHOLDERS’ EQUITY
Under the Commercial Code of Japan, the entire amount of the issue price of shares is required to be accounted for as capital,
although a company may, by resolution of its Board of Directors, account for an amount not exceeding one-half of the issue price
of the new shares as additional paid-in capital, which is included in capital surplus.
Effective October 1, 2001, the Commercial Code provides that an amount equal to at least 10% of cash dividends and other
cash appropriations shall be appropriated and set aside as a legal earnings reserve until the total amount of legal earnings reserve
and additional paid-in capital equals 25% of common stock. The total amount of legal earnings reserve and additional paid-in capi-
tal of the Company has been reached to 25% of common stock, and therefore the Company is not required to provide legal earn-
ings reserve any more. The legal earnings reserve and additional paid-in capital may be used to eliminate or reduce a deficit by
resolution of the shareholders’ meeting or may be capitalized by resolution of the Board of Directors. On condition that the total
amount of legal earnings reserve and additional paid-in capital remains being equal to or exceeding 25% of common stock, they
are available for distribution by the resolution of shareholders’ meeting. Legal earnings reserve is included in retained earnings in
the accompanying consolidated financial statements.
The maximum amount that the Company can distribute as dividends is calculated based on the non-consolidated financial
statements of the Company in accordance with the Commercial Code.
Effective April 1, 2002, the Company adopted the new accounting standard for treasury stock and reversal of statutory reserves
(Accounting Standards Board Statement No. 1, “Accounting Standard for Treasury Stock and Reversal of Statutory Reserves,” issued
by the Accounting Standards Board of Japan on February 21, 2002).
The effect on net income of the adoption of the new accounting standard was not material.
12. LEASE TRANSACTIONS
(1) Finance leases
The amounts of outstanding future lease payments due at March 31, 2004 and 2003 and total lease expenses (including total
assumed depreciation cost and total assumed interest cost) as lessee for the years ended March 31, 2004 and 2003 were as follows:
Thousands of
Millions of Yen U.S. Dollars
2004 2003 2004
Future lease payments:
Due within one year .............................................................................. ¥4,416 ¥3,741 $41,660
Due over one year ................................................................................ 8,814 9,249 83,151
Total...................................................................................................... ¥13,230 ¥12,990 $124,811
Total lease expenses ................................................................................... ¥4,551 ¥ 4,602 $42,934
Total assumed depreciation cost ................................................................. ¥4,121 ¥ 4,145 $38,877
Total assumed interest cost......................................................................... ¥495 ¥589 $4,670
Assumed data as to acquisition cost, accumulated depreciation and net book value of the leased assets under the finance lease
contracts as lessee at March 31, 2004 and 2003 were summarized as follows:
Millions of Yen Thousands of U.S. Dollars
2004 2003 2004
Acquisition Accumulated Net book Acquisition Accumulated Net book Acquisition Accumulated Net book
cost depreciation value cost depreciation value cost depreciation value
Machinery ........................................ ¥16,346 ¥6,980 ¥ 9,366 ¥14,414 ¥4,482 ¥ 9,932 $154,208 $65,849 $ 88,359
Equipment ........................................ 4,723 2,236 2,487 3,711 1,709 2,002 44,556 21,094 23,462
Other ................................................ 1,577 627 950 1,400 707 693 14,877 5,915 8,962
Total ............................................ ¥22,646 ¥9,843 ¥12,803 ¥19,525 ¥6,898 ¥12,627 $213,641 $92,858 $120,783
(2) Operating leases
The amount of outstanding future lease payments due at March 31, 2004 was as follows:
Thousands of
Millions of Yen U.S. Dollars
Future lease payments:
Due within one year........................................................................................... ¥ 57 $ 538
Due over one year.............................................................................................. 89 839
Total .................................................................................................................. ¥146 $1,377