Fujitsu 2008 Annual Report Download - page 96

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(d) Revenue recognition
Revenue from sales of IT systems and products excluding customized software under development contracts (the “cus-
tomized software”) is recognized upon acceptance by the customers, whereas, revenue from sales of personal comput-
ers, other equipment and electronic devices is recognized when the products are delivered to the customers. Revenue
from sales of the customized software is recognized by reference to the percentage-of-completion method.
<Changes in accounting principles and practices for the year ended March 31, 2008>
For the year ended March 31, 2008, the Group changed its accounting policy for the revenue recognition of per-
sonal computers, other equipment and electronic devices from recognition upon shipment to recognition upon
delivery to customers. The amounts in the consolidated financial statements prior to and for the year ended March
31, 2007 have not been restated.
For the year ended March 31, 2008, as a result of this change, net sales decreased by ¥5,753 million ($57,530
thousand) and operating income and income before income taxes and minority interests both decreased by ¥1,767
million ($17,670 thousand). The impact of this change to the segment information is set forth in Note 18.
(e) Marketable securities
Marketable securities included in “short-term investments” and “investments and long-term loans” are classified as
either held-to-maturity investments, which are the debt securities which the Group has the positive intent and
ability to hold to maturity, or available-for-sale securities, which are “equity securities” or “debt securities not classi-
fied as held-to-maturity.”
Held-to-maturity investments are stated at amortized cost, adjusted for the amortization of premium or accretion
of discounts to maturity. The cost of available-for-sale securities sold is calculated by the moving average method.
Available-for-sale securities are carried at fair market value, with the unrealized gains or losses, net of taxes,
reported in a separate component of net assets.
(f) Allowance for doubtful accounts
The allowance for doubtful accounts is provided at an amount deemed sufficient to cover estimated future losses.
(g) Inventories
Finished goods are mainly stated at cost determined by the moving average method.
Work in process is mainly stated at cost determined by the specific identification method or the average
cost method.
Raw materials are mainly stated at cost determined by the moving average method.
Inventories with lower profitability are written down.
<Changes in accounting principles and practices for the year ended March 31, 2008>
For the year ended March 31, 2008, the Company and its consolidated subsidiaries in Japan adopted the account-
ing standards for measurement of inventories which were newly applied in Japan. The amounts in the consolidated
financial statements prior to and for the year ended March 31, 2007 have not been restated.
For the year ended March 31, 2008, as a result of this change, operating income decreased by ¥2,706 million
($27,060 thousand) and income before income taxes and minority interests, which included “loss on revaluation of
inventories at the beginning of period” of ¥25,045 million ($250,450 thousand), decreased by ¥27,751 million
($277,510 thousand).
094
ANNUAL REPORT 2008FUJITSU LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS