Casio 2009 Annual Report Download - page 34

32 CASIO COMPUTER CO., LTD.
3. Changes in Accounting Policies
(1) Unification of Accounting Policies Applied to Overseas Subsidiaries for Consolidated Financial Statements
On May 17, 2006, the Accounting Standards Board of Japan issued ASBJ Practical Issues Task Force No. 18 “Practical Solution on
Unification of Accounting Policies Applied to Foreign Subsidiaries for Consolidated Financial Statements” (PITF No. 18). PITF No.
18 requires that accounting policies and procedures applied by a parent company and its subsidiaries to similar transactions and
events under similar circumstances should, in principle, be unified for the preparation of the consolidated financial statements.
Accordingly, the Company carried out adjustments for the following six items with regard to overseas subsidiaries. In this case,
adjustments for the following six items are required in the consolidation process so that their impacts on net income are accounted
for in accordance with Japanese GAAP unless the impact is not material.
(a) Goodwill not subject to amortization
(b) Actuarial gains and losses of defined benefit plans recognized outside profit or loss
(c) Capitalized expenditures for research and development activities
(d) Fair value measurement of investment properties, and revaluation of property, plant and equipment, and intangible assets
(e) Retrospective treatment of a change in accounting policies
(f) Accounting for net income attributable to minority interests
The effect on net income of the adoption of the new accounting standards is not material.
(2) Changes in depreciation method
In accordance with amendments to the Income Tax Law enacted in fiscal 2007, the Company and its consolidated subsidiaries have
adopted new accounting standards, effective from the year ended March 31, 2008, for the depreciation of property, plant and
equipment acquired on April 1, 2007 or after.
The adoption of the new standards causes operating income and income before income taxes and minority interests for the year
ended March 31, 2008 to be reduced by ¥527 million ($5,378 thousand).
(3) New accounting standards for inventories
On July 5, 2006, the Accounting Standards Board of Japan issued ASBJ Statement No. 9, “Accounting Standards for Measurement
of Inventories.” As permitted under the superseded accounting standards, the Company and consolidated subsidiaries in Japan
previously stated inventories at the lower of cost (first-in, first-out) or market (replacement cost or net realizable value) unless the
market value of inventories has declined significantly and is not deemed recoverable, in such cases costs were reduced to recover-
able amounts. The new accounting standard requires that inventories held for sale in the ordinary course of business be measured
at the lower of cost or net realizable value. Replacement cost may be used in place of the net realizable value, if appropriate.
The effect on net income of the adoption of the new accounting standards is not material.
(4) New accounting standards for lease transactions as lessee
Prior to the year ended March 31, 2009, the Company and its consolidated subsidiaries in Japan accounted for finance leases which
do not transfer ownership of the leased property to the lessee as operating leases with disclosure of certain “as if capitalized”
information in a note to the consolidated financial statements.
On March 31, 2007, the Accounting Standards Board of Japan issued ASBJ Statement No. 13, “Accounting Standards for Lease
Transactions” and ASBJ Guidance No. 16, “Guidance on Accounting Standards for Lease Transactions.” The new accounting
standards require that all finance lease transactions should be capitalized.
Effective from the year ended March 31, 2009 the Company and its consolidated subsidiaries in Japan adopted the new
accounting standards for finance leases commencing on or after April 1, 2008 and capitalized assets used under such leases, except
for certain immaterial or short-term finance leases, which are accounted for as operating leases. As permitted, finance leases which
commenced prior to April 1, 2008 and have been accounted for as operating leases, continue to be accounted for as operating
leases with disclosure of “as if capitalized” information.
The effect on net income of the adoption of the new accounting standards is not material.
Notes to Consolidated Financial Statements Years ended March 31, 2009 and 2008 Casio Computer Co., Ltd. and Subsidiaries