Fujitsu 2007 Annual Report Download - page 78

Download and view the complete annual report

Please find page 78 of the 2007 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 98

  • 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
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98

<Outside Japan>
FS adopted International Financial Reporting Standards (“IFRS”) for the year ended March 31, 2006,
and accounts for retirement benefits in accordance with IAS 19 “Employee Benefits.” For this change in
accounting principles and practices, FS adopted IFRS 1 “First-time Adoption of International Financial
Reporting Standards,” and recognized the projected benefit obligation in excess of plan assets as of April
1, 2004. FS recognized actuarial gain or loss over future periods after the adoption of IFRS 1.
From the year ended March 31, 2006, Fujitsu Telecommunications Europe Limited, a consoli-
dated subsidiary in the UK, recognized the full value of the unrecognized obligation immediately as
accrued retirement benefits, in accordance with a new UK accounting standard for the retirement
benefits (Financial Reporting Standard 17).
Projected benefit obligation and plan assets
Yen U.S. Dollars
(millions) (thousands)
At March 31 2006 2007 2007
Projected benefit obligation ¥(597,236) ¥(679,617) $(5,759,466)
Plan assets 448,619 546,498 4,631,339
Projected benefit obligation in excess of plan assets (148,617) (133,119) (1,128,127)
Unrecognized actuarial loss 31,924 11,965 101,398
Unrecognized prior service cost — 186 1,576
Accrued retirement benefits ¥(116,693) ¥(120,968) $(1,025,153)
Components of net periodic benefit cost
Yen U.S. Dollars
(millions) (thousands)
Years ended March 31 2006 2007
Service cost ¥ 8,205 ¥ 11,379 $ 96,432
Interest cost 27,436 32,123 272,229
Expected return on plan assets (25,370) (33,169) (281,093)
Amortization of the unrecognized obligation for retirement benefit:
Amortization of actuarial loss 81 266 2,254
Net periodic benefit cost ¥ 10,352 ¥ 10,599 $ 89,822
FS applied the “corridor” approach to amortization of actuarial loss.
The assumptions used in accounting for the plans
At March 31 2006 2007
Discount rate Mainly 5.1% Mainly 5.5%
Expected rate of return on plan assets Mainly 7.3% Mainly 7.0%
Method of allocating actuarial loss Straight-line method over the Straight-line method over the
employees’ average remaining employees’ average remaining
service period service period
76 Fujitsu Limited
2007