Casio 2006 Annual Report Download - page 33

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Annual Report 2006
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 2005 consolidated financial statements to conform to the 2006 presentation.
3. Cash and Cash Equivalents and Statements of Cash Flows
Cash and cash equivalents at March 31, 2006 and 2005 consisted of the following:
Thousands of
Millions of Yen U.S. Dollars
2006 2005 2006
Cash and time deposits .............................................................................. ¥71,818 ¥83,528 $ 613,829
Time deposits over three months ............................................................... (757) (617) (6,470)
Marketable securities within three months.................................................. 29,171 44,678 249,325
Short-term loans receivable with resale agreement ..................................... 25,000 20,000 213,675
Cash and cash equivalents.......................................................................... ¥125,232 ¥147,589 $1,070,359
4. Inventories
Inventories at March 31, 2006 and 2005 consisted of the following:
Thousands of
Millions of Yen U.S. Dollars
2006 2005 2006
Finished products ....................................................................................... ¥35,792 ¥38,109 $305,914
Work in process.......................................................................................... 7,733 8,234 66,094
Materials and supplies ................................................................................ 14,118 16,233 120,667
Total...................................................................................................... ¥57,643 ¥62,576 $492,675
5. Securities
(1) The following tables summarize acquisition costs, book values and fair values of securities with available fair values at March 31,
2006 and 2005.
(a) Held-to-maturity debt securities
Millions of Yen Thousands of U.S. Dollars
2006 2005 2006
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 ¥2,399 ¥169 ¥2,230 ¥2,433 ¥203 $19,060 $20,504 $1,444
Securities other than the above ......... ——— ——— ———
Total ............................................ ¥2,230 ¥2,399 ¥169 ¥2,230 ¥2,433 ¥203 $19,060 $20,504 $1,444