Fujitsu 2001 Annual Report Download - page 35

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2. Differences with International Accounting Standards
The differences between the accounting principles and practices adopted by the Group and those prescribed by
International Accounting Standards (“IAS”) are summarized as follows.
Lease (Note 15)
Prior to and for the year ended March 31, 1999, the Company and its subsidiaries in Japan had treated finance leases
in the same way as operating leases under accounting principles generally accepted in Japan, which differed from IAS
No.17.
For the year ended March 31, 2000 and after, there is no difference from IAS No.17, since the Group changed its
method of accounting for finance leases from accounting such leases in the same manner as operating leases to
recording lease receivables and capitalizing them as lease assets.
Scope of consolidation
Prior to and for the year ended March 31, 1999, Fujitsu Leasing Co., Ltd. had been excluded from consolidation in
accordance with accounting principles generally accepted in Japan, and this represented a deviation from the scope of
consolidation prescribed under IAS No.27.
For the year ended March 31, 2000 and after, there is no difference from IAS No.27, since Fujitsu Leasing Co., Ltd.
has been consolidated.
Decrease in foreign currency translation adjustments
Under IAS No.21, upon the liquidation of a foreign subsidiary, the amount of foreign currency translation adjustments
related to a foreign subsidiary should be recognized as income or expense.
For the year ended March 31, 1999, the Group recorded this amount directly in retained earnings.
Non-current receivables and payables denominated in foreign currencies
Prior to and for the year ended March 31, 2000, non-current receivables and payables denominated in foreign
currencies had been translated into Japanese yen at the exchange rate in effect at their transaction dates, which
differed from IAS No.21.
For the year ended March 31, 2001, there is no difference from IAS No.21, as the amounts in the financial
statements are translated at the exchange rate in effect at the balance sheet date.
Detachable stock purchase warrants (Note 9)
Under IAS No.32, detachable stock purchase warrants should be recorded as a component of shareholders' equity.
For the year ended March 31, 2000 and before, The Group had included warrants in other current liablities.
Marketable securities (Note 4)
Under IAS No.25, marketable securities included in investments and long-term loans should be stated at the lower of
cost or market on a portfolio basis.
Marketable securities are valued as indicated in the section(f) of “Significant Accounting Policies”.
Inventories
Under IAS No.2, inventories should be stated at the lower of their historical cost or net realizable value.
Inventories are valued as indicated in the section(h) of “Significant Accounting Policies”. Had IAS No.2 been applied,
the difference in the aggregate value of inventories would not have been significant.
amounts in the financial statements prior to and for the year ended March 31, 2000, have not been restated. The
adoption of this standard, however, did not have a material impact on the financial statements.
(q) Change in significant accounting policy
Prior to and for the year ended March 31, 1999, the Company and its consolidated subsidiaries in Japan treated
finance leases in the same way as operating leases, which is generally accepted in Japan. As Fujitsu Leasing Co., Ltd.
became a consolidated subsidiary effective the year ended March 31, 2000, the Group has adopted a method under
which the Group, as a lessee, records the leased assets and the corresponding lease obligations, and, as a lessor,
records the lease receivables under finance leases.
The effect on the net income and total assets resulting from this change in the method of accounting was
immaterial.