Casio 2005 Annual Report Download - page 29

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ANNUAL REPORT 2005
Accounting for certain lease transactions
Finance leases, which do not transfer titles to lessees, are accounted for in the same manner as operating leases under accounting
principles generally accepted in Japan.
Income taxes
Taxes on income consist of corporation, inhabitants and enterprise taxes.
Deferred income taxes are provided for the items relating to intercompany profit elimination in connection with the calculation
of the consolidated results of operations. In addition, some foreign subsidiaries recognize deferred income taxes in accordance with
accounting practices prevailing in their respective countries of domicile.
The Group recognizes tax effects of temporary differences between the financial statement and the tax basis of assets and lia-
bilities. The provision for income taxes is computed based on the income before income taxes and minority interests included in the
statements of income of each company of the Group. The asset and liability approach is used to recognize deferred tax assets and
liabilities for the expected future tax consequences of temporary differences.
Appropriations of retained earnings
Appropriations of retained earnings are accounted for and reflected in the accompanying consolidated financial statements when
approved by the shareholders.
Amounts per share of common stock
Net income per share of common stock has been computed based on the weighted average number of shares of common stock
outstanding during each fiscal year (less the treasury stock). For diluted net income per share, the number of shares outstanding is
adjusted to assume the conversion of convertible bonds. Related interest expense, net of income taxes, is eliminated.
Cash dividends per share represent the actual amount applicable to the respective years.
Reclassifications
Certain reclassifications have been made in the 2004 consolidated financial statements to conform to the 2005 presentation.
3. CASH AND CASH EQUIVALENTS AND STATEMENTS OF CASH FLOWS
Cash and cash equivalents at March 31, 2005 and 2004 consisted of the following:
Thousands of
Millions of Yen U.S. Dollars
2005 2004 2005
Cash and time deposits .............................................................................. ¥83,528 ¥79,977 $ 780,636
Time deposits over three months ............................................................... (617) (1,336) (5,767)
Marketable securities within three months.................................................. 44,678 44,500 417,551
Short-term loans receivable with resale agreement ..................................... 20,000 —186,916
Cash and cash equivalents.......................................................................... ¥147,589 ¥123,141 $1,379,336
4. INVENTORIES
Inventories at March 31, 2005 and 2004 consisted of the following:
Thousands of
Millions of Yen U.S. Dollars
2005 2004 2005
Finished products ....................................................................................... ¥38,109 ¥36,700 $356,159
Work in process.......................................................................................... 8,234 9,780 76,953
Materials and supplies ................................................................................ 16,233 15,779 151,710
Total...................................................................................................... ¥62,576 ¥62,259 $584,822
5. SECURITIES
(1) The following tables summarize acquisition costs, book values and fair values of securities with available fair values at March 31,
2005 and 2004.
(a) Held-to-maturity debt securities
Millions of Yen Thousands of U.S. Dollars
2005 2004 2005
Book value Fair value Difference Book value Fair value Difference Book value Fair value Difference
Securities with available fair
values exceeding book values.......... ¥2,230 ¥2,433 ¥203 ¥2,230 ¥2,337 ¥107 $20,841 $22,738 $1,897
Securities other than the above ......... ——— ——— ———
Total ............................................ ¥2,230 ¥2,433 ¥203 ¥2,230 ¥2,337 ¥107 $20,841 $22,738 $1,897