Casio 2011 Annual Report Download - page 29

Download and view the complete annual report

Please find page 29 of the 2011 Casio annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 52

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52

27
Annual Report 2011
3. Changes in Accounting Policies
(1) New accounting standard for retirement benefits
Effective from the year ended March 31, 2010, the Company and its consolidated subsidiaries in Japan adopted ASBJ Statement
No. 19, “Partial Amendments to Accounting Standard for Retirement Benefits (Part 3)” issued by the Accounting Standards Board
of Japan on July 31, 2008.
The effect on net income of the adoption of the new accounting standard is not material.
(2) New accounting standards for construction contracts
Prior to the year ended March 31, 2010, the Company and its consolidated subsidiaries in Japan recognized revenues and costs of
construction contracts using the completed-contract method. Effective from the year ended March 31, 2010, the Company and
consolidated subsidiaries in Japan adopted the ASBJ Statement No. 15, “Accounting Standard for Construction Contracts” and
ASBJ Guidance No. 18, “Guidance on Accounting Standard for Construction Contracts,” both issued by the Accounting Standards
Board of Japan on December 27, 2007. Accordingly, with respect to construction contracts whose activity commenced in the year
ended March 31, 2010, the percentage-of-completion method has been applied if the outcome of the construction activity is
deemed certain during the course of the activity, otherwise the completed-contract method has been applied. The percentage of
completion as of the end of the reporting period is estimated based on the percentage of the cost incurred to the estimated total
cost.
The effect on net income of the adoption of the new accounting standards is not material.
(3) New accounting standards for equity method
Effective from the year ended March 31, 2011, the Company and its consolidated subsidiaries in Japan adopted ASBJ Statement
No. 16, “Accounting Standard for Equity Method of Accounting for Investments” and ASBJ Practical Issues Task Force No. 24,
“Practical Solution on Unification of Accounting Policies Applied to Associates Accounted for Using the Equity Method” issued by
the Accounting Standards Board of Japan on March 10, 2008, respectively.
The effect on net income of the adoption of the new accounting standards is not material.
(4) New accounting standards for asset retirement obligations
Effective from the year ended March 31, 2011, the Company and its consolidated subsidiaries in Japan adopted ASBJ Statement
No. 18, “Accounting Standard for Asset Retirement Obligations” and ASBJ Guidance No. 21 “Guidance on Accounting Standard
for Assets Retirement Obligations,” both issued by the Accounting Standards Board of Japan on March 31, 2008.
The adoption of the new accounting standards causes operating income for the year ended March 31, 2011 to be reduced
by ¥8 million ($96 thousand) and income before income taxes and minority interests for the year ended March 31, 2011 to be
reduced by ¥161 million ($1,940 thousand), respectively. The change of asset retirement obligations caused by adoption of the new
accounting standards is ¥225 million ($2,711 thousand).
(5) New accounting standards for business combination
Effective from the year ended March 31, 2011, the Company and its consolidated subsidiaries in Japan adopted ASBJ Statement
No. 21, “Accounting Standard for Business Combinations,” ASBJ Statement No. 23, “Partial Amendments to Accounting Standard
for Research and Development Costs,” ASBJ Statement No. 7, “Revised Accounting Standard for Business Divestitures,” ASBJ
Statement No. 16, “Revised Accounting Standard for Equity Method of Accounting for Investments,” and ASBJ Guidance No. 10,
“Revised Guidance on Accounting Standard for Business Combinations and Accounting Standard for Business Divestitures” issued
by the Accounting Standards Board of Japan on December 26, 2008, respectively.
The Company and its consolidated subsidiaries in Japan adopted ASBJ Statement No. 22, “Accounting Standard for
Consolidated Financial Statements” issued by the Accounting Standards Board of Japan on December 26, 2008. The effect on net
income of the adoption of the new accounting standard is not material.