Fujitsu 2002 Annual Report Download - page 33

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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.
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 and after 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.
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.
Impairment of Property, plant and equipment
Under IAS No.36, upon impairment of property, plant and equipment, the book value should be devalued to the
recoverable amount.
The impairment rule has not been defined in Japan. The Company and its consolidated subsidiaries in Japan devalued
property, plant and equipment in accordance with accounting principles generally accepted in Japan. The effects on the
aggregate value of property, plant and equipment based on IAS No.36 are not calculated.
Retirement benefits (Note 10)
Under IAS No.19, the period of amortizing the unrecognized net obligation upon application of a new accounting
standard should be less than five years. The accounting procedure for this amortization is indicated in Note 10.
Please refer the corresponding notes for details.
3. U.S. Dollar Amounts
The Company and its consolidated subsidiaries in Japan maintain their books of account in yen. The U.S. dollar amounts
included in the accompanying consolidated financial statements and the notes thereto represent the arithmetic results of
translating yen into U.S. dollars at ¥133= US$1, the approximate rate of exchange prevailing on March 31, 2002.
The U.S. dollar amounts are presented solely for the convenience of the reader and the translation is not intended to
imply that the assets and liabilities which originated in yen have been or could readily be converted, realized or settled in
U.S. dollars at the above or any other rate.
This change resulted in a decrease of ¥75,337 million ($566,444 thousand) of cost of sales, an increase of ¥85,468
million ($642,617 thousand) of selling, general and administrative expenses, and a decrease of ¥10,131 million ($76,173
thousand) of operating income and income before income taxes and minority interests, respectively, for the year ended
March 31, 2002. The impact of this change on the segment information is indicated in Note 19.
Yen U.S. Dollars
(millions) (thousands)
2001 2002 2002
Held-to-maturity investments
Carrying value (Amortized cost) ¥3,851 ¥1,062 $ 7,985
Market value 3,892 1,006 7,564
Net unrealized gain (loss) ¥41 ¥(56) $ (421)
Available-for-sale-securities
Acquisition costs ¥111,887 ¥97,991 $ 736,774
Carrying value (Market value) 145,527 115,616 869,293
Net unrealized gain ¥33,640 ¥ 17,625 $ 132,519
4. Marketable Securities
At March 31, 2001 and 2002, marketable securities included in short-term investments and other investments and long-
term loans are as follows.