Fujitsu 2012 Annual Report Download - page 113

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(m) Provision for construction contract losses
Provision for construction contract losses is the estimated amount of future losses on customized software or construction contracts
whose costs are probable to exceed total contract revenues.
(n) Provision for bonuses to board members
Provision for the bonuses to board members is recorded based on an estimated amount.
(o) 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.
(p) 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.
(q) 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.
(r) 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 tem-
porary differences in the recognition of assets and liabilities for tax and financial reporting purposes.
(s) Earnings per share
Basic earnings per share is computed based on the weighted average number of shares of common stock outstanding during the respec-
tive 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.
(t) Changes in disclosures
Effective the year ended March 31, 2012, the Group has implemented “Accounting Standard for Accounting Changes and Error Correc-
tions” (Accounting Standards Board of Japan Statement No. 24, issued December 4, 2009) and the “Guidance on Accounting Standard for
Accounting Changes and Error Corrections” (Accounting Standards Board of Japan Guidance No. 24, issued December 4, 2009).
(u) Accounting standards issued but not yet effective
The following accounting standards were issued but not yet effective up to June 25, 2012, the filing date of the Annual Securities Report,
regulated by the Financial Instruments and Exchange Law of Japan. The Group has not yet adopted these standards as of March 31, 2012.
111
FUJITSU LIMITED ANNUAL REPORT 2012
Facts & Figures