Fujitsu 2002 Annual Report Download - page 39

Download and view the complete annual report

Please find page 39 of the 2002 Fujitsu 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 50

  • 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

37
Under a new accounting standard in Japan, the Company fully recognized in income the Company’s portion of the
unrecognized net obligation at transition. For additional plan assets to cover the unrecognized net obligation at transition,
the Company placed its holding marketable securities in trust which was solely established for the retirement benefit plan.
For the year ended March 31, 2001, ¥415,615 million for the amortization of unrecognized net obligation at transition
and ¥460,280 million of gains on establishment of the stock holding trust for the retirement benefit plan were recorded as
other income (expenses). The remaining unrecognized net obligation for the consolidated subsidiaries in Japan was
amortized and ¥26,264 million was recognized as expense for the year ended March 31, 2001.
Under a previous accounting standard in Japan, pension costs of major defined benefit plans were based on annual
contributions calculated by the projected benefit valuation method. Accrued lump-sum benefits were stated at the present
value of the vested benefit obligation which would be required to be paid if all employees voluntarily terminated their
services at the balance sheet date.
Considering the above trust scheme, the adoption of the new accounting standard had no material impact on net income
for the year ended March 31, 2001.
The major defined benefit pension plan outside Japan is the ICL pension plan. The plan is subjected to formal actuarial
valuation in accordance with SSAP24 (Statements of Standard Accounting Practice 24), and the fair value of the plan
assets at April 5, 2000, the most recent valuation date, was sufficient to cover the actuarial present value of future benefit
obligations.
The fair value of the plan assets and the present value of future benefit obligations in accordance with FRS17
(Financial Reporting Standards 17), which is a new UK accounting practice for retirement benefits applied from the
accounting period ending on March 31, 2004, are now calculating.