Fujitsu 2008 Annual Report Download - page 98

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<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 leases which were applied in Japan.
These changes did not have any impact on income for the year ended March 31, 2008 as leased assets were
already recognized on the consolidated balance sheets in prior years.
(k) Provision for product warranties
Provision for product warranties is recognized at the time of sales of the products at an amount which represents the
estimated cost, based on past experience, to repair or exchange certain products within the warranty period.
(l) Retirement benefits
The Company and the majority of the consolidated subsidiaries have retirement benefit plans.
Under the significant defined benefit plans, the actuarial valuation used to determine the pension costs is the
projected unit credit method.
<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 reclassified amor-
tization recognition from a component of “other income (expenses)“ to a component of “cost of sales or selling,
general and administrative expenses.” 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 ¥7,467 million
($74,670 thousand). There was no impact on income before income taxes and minority interests. The impact of this
change to the segment information is set forth in Note 18.
(m) Provision for loss on repurchase of computers
Certain computers manufactured by the Group are sold to Japan Electronic Computer Co., Ltd. (“JECC”) and other
leasing companies for leasing to ultimate users under contracts which require the Group to repurchase the com-
puters if they are returned by the users after a certain period. Based on past experience, an estimated amount for
the loss arising from such repurchases is provided at the point of sales and is charged to income.
(n) Provision for recycling expenses
A provision for anticipated recycling expenses has been made based on the regime for PC recycling enforced in
Japan to prepare for recycling expenses incurred upon collection of consumer PCs sold.
(o) Income taxes
The Group has adopted the asset and liability method of tax effect accounting in order to recognize income tax effect
of all temporary differences in the recognition of assets and liabilities for tax and financial reporting purposes.
096
ANNUAL REPORT 2008FUJITSU LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS