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1. Significant Accounting Policies
(a) Basis of presenting consolidated financial statements and the principles of consolidation
The accompanying consolidated financial statements of Fujitsu Limited (the “Company”) and its consolidated subsidiaries (together, the
“Group”) have been prepared in accordance with the regulations under the Financial Instruments and Exchange Law of Japan and accounting
principles and practices generally accepted in Japan. In presenting the accompanying consolidated financial statements, certain items have
been reclassified for the convenience of readers outside Japan.
The consolidated financial statements include the accounts of the Company and, with minor exceptions, those of its majority-owned subsidiaries.
The acquisition of companies is accounted for by the purchase method. Goodwill represents the excess of the acquisition cost over the fair
value of the net assets of the acquired companies.
Investments in affiliates, with minor exceptions, are accounted for by the equity method.
<Changes in accounting principles and practices for the year ended March 31, 2009>
For the year ended March 31, 2009, the Group has adopted the “Practical Solution on Unification of Accounting Policies Applied to Foreign
Subsidiaries for Consolidated Financial Statements,” which was applied in Japan. The impact of this change on operating income and income
(loss) before income taxes and minority interests for the year ended March 31, 2009, was insignificant.
IFRS had been applied firstly to Fujitsu Services Holdings PLC in the UK and its subsidiaries for the year ended March 31, 2006, and then to
several subsidiaries outside Japan such as those in Australia and Singapore. Finally, for the year ended March 31, 2009, IFRS has been applied
to all the subsidiaries outside Japan. For such subsidiaries adopting IFRS for the year ended March 31, 2009, this change in accounting principles
and practices modified their accounting procedures retroactively which decreased the consolidated retained earnings by ¥1,585 million
($16,173 thousand) as of the beginning of the year ended March 31, 2009. The impact of this change to the segment information is set forth in
Note 18.
(b) Cash equivalents
Cash equivalents are considered to be short-term highly liquid investments with a maturity of three months or less from the date of acquisition
and an insignificant risk of fluctuation in value.
(c) Translation of foreign currency accounts
Receivables and payables denominated in foreign currencies are translated into Japanese yen at the foreign currency exchange rates in effect
at the respective balance sheet dates.
The assets and liabilities accounts of the consolidated subsidiaries outside Japan are translated into Japanese yen at the exchange rates in
effect at the respective balance sheet dates. Income and expense accounts are translated at the average exchange rate during the year. The
resulting translation adjustments are recorded in a separate component of net assets as “foreign currency translation adjustments.”
(d) Revenue recognition
Revenue from sales of IT systems and products excluding customized software under development contracts (the “customized software”) is
recognized upon acceptance by the customers, whereas, revenue from sales of personal computers, 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, 2009>
For the year ended March 31, 2009, the Company and its subsidiaries in Japan adopted the “Accounting Standard for Construction Contracts”
which was newly applied in Japan. The impact of this change on sales, operating income and income (loss) before income taxes and minority
interests for the year ended March 31, 2009, was insignificant because the Group had already applied the percentage-of-completion method
to revenue recognition for the customized software, a core business of the Group. The impact of this change to the segment information is set
forth in Note 18.
Fujitsu Limited and Consolidated Subsidiaries
Notes to Consolidated Financial Statements
FACTS & FIGURES
Consolidated Statements of Cash Flows/Notes to Consolidated Financial Statements
091
ANNUAL REPORT 2009
FUJITSU LIMITED