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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 reclassified amortization recognition from a com-
ponent 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. 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.
(n) 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 computers 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.
(o) 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.
(p) Income taxes
The Group has mainly 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.
(q) Earnings per share
Basic earnings per share is computed based on the weighted average number of shares of common stock outstanding during the respective years.
Diluted earnings per share is computed based on the weighted average number of shares after consideration of the dilutive effect of the
shares of common stocks issuable upon the exercise of subscription rights to shares and the conversion of convertible bonds.
(r) Derivative financial instruments
The Group uses derivative financial instruments for the purpose of hedging against the risk of fluctuations in interest rates and foreign exchange
rates on receivables and payables denominated in foreign currencies.
Derivative financial instruments are stated at fair market value.
The Group defers gain or loss on changes in the fair market values of the derivative financial instruments on the balance sheet until gain
or loss on the hedged items are recognized.
2. U.S. Dollar Amounts
The Company and its consolidated subsidiaries in Japan maintain their books of account in yen. The U.S. dollar amounts included in the
accompanying consolidated financial statements and the notes thereto represent the arithmetic results of translating yen into U.S. dollars at
¥98 = US$1, the approximate exchange rate at March 31, 2009.
The U.S. dollar amounts are presented solely for the convenience of readers and the translation is not intended to imply that the assets and
liabilities which originated in yen have been or could readily be converted, realized or settled in U.S. dollars at the above or any other rate.
094 ANNUAL REPORT 2009
FUJITSU LIMITED
Notes to Consolidated Financial Statements