Fujitsu 2003 Annual Report Download - page 45

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43
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 millions for the amortization of unrecognized net obligation at transition
and ¥460,280 millions of gains on establishment of the stock holding trust for the retirement benefit plan were recorded
as other expenses and other income, respectively. The remaining unrecognized net obligation for the consolidated
subsidiaries in Japan was amortized and ¥26,264 millions 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 approximately
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 Group Pension Plan. This plan is subject to formal
actuarial valuation in accordance with the UK accounting standard SSAP24 (Statements of Standard Accounting Practice
24).
The Accounting Standards Board of the UK has issued a new UK accounting standard, FRS17 (Financial Reporting
Standard 17). It is proposed that FRS17 will be fully effective as the replacement of SSAP24 for accounting periods
beginning on or after January 1, 2005. In accordance with the transitional arrangements set out in FRS17, certain
disclosures are required using the different measurement bases laid down in FRS17.
The projected benefit obligation and the fair value of the plan assets in accordance with FRS 17 are summarized as
follows:
Projected benefit obligation and plan assets Yen U.S.Dollars
(millions) (thousands)
At March 31 (ICL Group Pension Plan) 2002 2003 2003
Projected benefit obligation ¥(330,757) ¥(322,898) $(2,690,816)
Plan assets 266,094 207,637 1,730,308
Deficit in the Plan ¥ (64,663) ¥(115,261) $ (960,508)
Discount rate 6.00% 5.75%