Fujitsu 2013 Annual Report Download - page 119

restatements, net assets at the beginning and end of the year ended March 31, 2013 are expected to decrease by roughly ¥110 billion
($1,170 million) and ¥160 billion ($1,702 million), respectively. In the consolidated income statement, operating income is considered to
be adversely impacted due to the increase in amortization of actuarial gains and losses in the consolidated subsidiaries outside Japan*,
and the increase in net periodic benefit cost caused by the application of the net interest on the net defined benefit liability (asset). Both
operating and net income are considered to decrease by ¥7 billion ($74 million), approximately.
* The Company’s consolidated subsidiaries outside of Japan have to date applied the corridor approach for recognizing a portion of actuarial gains and losses as an
expense. Under the corridor approach, when the net cumulative unrecognized actuarial gains and losses at the end of the year ended March 31, 2013 exceed the
greater of 10% of the present value of the defined benefit obligation or 10% of the fair value of plan assets, the excess amount is recognized as an expense over
the expected average remaining service lives of employees.
The amendment to IAS 19 does not allow recycling of actuarial gains and losses held by the Company’s consolidated subsidiaries outside Japan to the income
statement. However, in the process of the Group’s consolidation, these are periodically recognized as an expense over the expected average remaining service lives
of employees, in line with the “Practical Solution on Unification of Accounting Policies Applied to Foreign Subsidiaries for Consolidated Financial Statements.” The
accounting standard requires retrospective application. The Group will therefore restate the corresponding financial statement for the year ended March 31, 2013
incorporating adjustments for the impact of the adoption of this standard.
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 ¥94 = US$1, the approximate exchange rate at March 31, 2013.
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.
3. Inventories
Inventories at March 31, 2012 and 2013 consist of the following:
Yen
(millions)
U.S. Dollars
(thousands)
At March 31 2012 2013 2013
Finished goods ¥139,162 ¥122,258 $1,300,617
Work in process 106,268 113,362 1,205,979
Raw materials and supplies 88,686 87,472 930,553
Total inventories ¥334,116 ¥323,092 $3,437,149
Amounts above are net of write-downs.
The amounts of write-downs recognized as cost of sales for the years ended March 31, 2012 and 2013 were ¥17,730 million and
¥20,578 million ($218,915 thousand), respectively.
4. Property, Plant and Equipment
Changes in property, plant and equipment, net of accumulated depreciation (including lease assets) are as follows:
Yen
(millions)
U.S. Dollars
(thousands)
Years ended March 31 2012 2013 2013
Land
Balance at beginning of year ¥117,481 ¥115,614 $1,229,936
Additions 601 287 3,053
Impairment loss 1,477 5,430 57,766
Translation differences (269) 709 7,543
Other, net (722) (2,233) (23,755)
Balance at end of year ¥115,614 ¥108,947 $1,159,011
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FUJITSU LIMITED ANNUAL REPORT 2013
FACTS & FIGURES