Casio 2008 Annual Report Download - page 33

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Annual Report 2008
Retirement benefits for directors and corporate auditors
The annual provision for accrued retirement benefits for directors and corporate auditors of the Company and certain subsidiaries
is calculated to state the liability at the amount that would be required if all directors and corporate auditors had retired at each
balance sheet date. The provisions for the retirement benefits are not funded.
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
liabilities. 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). Diluted net income per share is calculated based on the assumption
that all dilutive convertible bonds and stock options were converted or exercised at the beginning of year or at the time of issue.
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 2007 consolidated financial statements to conform to the 2008 presentation.
3. Cash and Cash Equivalents and Statements of Cash Flows
Cash and cash equivalents at March 31, 2008 and 2007 consisted of the following:
Millions of Yen
Thousands of
U.S. Dollars
2008 2007 2008
Cash and time deposits ...................................................................................... ¥45,688 ¥52,768 $456,880
Time deposits over three months ....................................................................... (3,800) (784) (38,000)
Marketable securities within three months ......................................................... 35,534 34,605 355,340
Short-term loans receivable with resale agreement ............................................. 10,535 10,650 105,350
Cash and cash equivalents ................................................................................. ¥87,957 ¥97,239 $879,570
4. Inventories
Inventories at March 31, 2008 and 2007 consisted of the following:
Millions of Yen
Thousands of
U.S. Dollars
2008 2007 2008
Finished products ............................................................................................... ¥33,218 ¥39,471 $332,180
Work in process ................................................................................................. 9,251 7,626 92,510
Materials and supplies ........................................................................................ 13,474 18,760 134,740
Total ............................................................................................................. ¥55,943 ¥65,857 $559,430
5. Securities
(1) The following tables summarize acquisition costs, book values and fair values of securities with available fair values at March 31,
2008 and 2007.
(a) Held-to-maturity debt securities
Millions of Yen Thousands of U.S. Dollars
2008 2007 2008
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 ¥2,311 ¥81 $ — $ — $ —
Securities other than the above ............. 2,230 2,218 (12) ———22,300 22,180 (120)
Total ................................................ ¥2,230 ¥2,218 ¥(12) ¥2,230 ¥2,311 ¥81 $22,300 $22,180 $(120)