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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Fujitsu Limited and Consolidated subsidiaries
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.
The Company’s consolidated subsidiaries outside Japan prepare their financial statements in accordance with IFRS (International
Financial Reporting Standards).
However, certain items are adjusted in the process of consolidation based on “Practical Solution on Unification of Accounting Policies
Applied to Foreign Subsidiaries for Consolidated Financial Statements” (Accounting Standards Board of Japan, Practical Issues Task Force,
No. 18 dated May 17, 2006).
<Changes in accounting principles and practices effective the year ended March 31, 2011>
Effective the year ended March 31, 2011, the Group has adopted the “Accounting Standard for Asset Retirement Obligations” (Accounting
Standards Board of Japan Statement No. 18, dated March 31, 2008) and the “Guidance on Accounting Standard for Asset Retirement
Obligations” (Accounting Standards Board of Japan Guidance No. 21, dated March 31, 2008).
As a result of the adoption of the above accounting standard, operating income decreased by ¥531 million ($6,398 thousand). The
difference between the amount of the asset retirements obligations newly recognized as a liability at the beginning of the fiscal year in
which the standard was adopted and the amount of asset retirement expenses recognized as an asset was recorded as an expense of
¥4,113 million ($49,554 thousand) in Other income (expenses). As a result, income before income taxes and minority interests
decreased by ¥4,644 million ($55,952 thousand).
Effective the year ended March 31, 2011, the Group has adopted the “Accounting Standard for Business Combinations” (Accounting
Standards Board of Japan Statement No. 21, dated December 26, 2008), “Accounting Standard for Consolidated Financial Statements”
(Accounting Standards Board of Japan Statement No. 22, dated December 26, 2008), and “Revised Guidance on Accounting Standard for
Business Combinations and Accounting Standard for Business Divestitures” (Accounting Standards Board of Japan Guidance No. 10,
revision dated December 26, 2008).
(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 accumulated other comprehensive income as “foreign cur-
rency translation adjustments.”
(d) Revenue recognition
Revenue from sales of ICT systems and products excluding customized software under development contracts (the “customized soft-
ware”) 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.
107FUJITSU LIMITED ANNUAL REPORT 2011
FACTS & FIGURES