Isuzu 2011 Annual Report Download - page 28

Financial Section
26
i) Income Taxes
Income taxes are accounted for on an accrual basis. Deferred tax assets
and liabilities are recognized for the future tax consequences attribut-
able to differences between the financial statements carrying amounts
of existing assets and liabilities and their respective tax bases. Deferred
tax assets and liabilities are measured using enacted tax rates expected
to apply to taxable income in the years in which those temporary differ-
ences are expected to be recovered or settled. The effect of deferred tax
assets and liabilities of a change in tax rate are recognized in income in
the period that includes the enacted date.
j) Net Income per Share
Net income per share of common stock is calculated based upon the
weighted average number of shares of common stock outstanding dur-
ing each year.
Basis for the calculation of net income per share at the year ended
March 31, 2011 is as follows:
Thousands of
Millions of yen U.S. dollars
Net Income ¥ 51,599 $ 620,554
Net income pertaining to common stock ¥ 51,599 $ 620,554
Average outstanding shares:
Common stock (share): 1,694,447,742
k) Appropriation of Retained Earnings
The appropriation of retained earnings is recorded in the fiscal year
in which such appropriation is approved by the Board of Directors or
Shareholders.
l) Cash and Cash Equivalents
For the purpose of the consolidated statements of cash flows, the
Company considers all highly liquid investments with a maturity of three
months or less to be cash equivalents.
Reconciliation for cash and cash equivalents at end of the year on
the consolidated statements of cash flows for the year ended March 31,
2011 is as follows:
Thousands of
Millions of yen U.S. dollars
Cash and time deposits
on the consolidated balance sheets ¥ 199,831 $ 2,403,264
Time deposits with maturities
exceeding three months (2,764) (33,248)
Bonds with maturities within three months 5,289 63,619
Cash and cash equivalents
on the statements of cash flows ¥ 202,356 $ 2,433,635
m) Accounting Changes
1. Adoption of Accounting Standards for Asset Retirement Obligations
Effective from the current consolidated fiscal year, “Accounting
Standard for Asset Retirement Obligations” (ASBJ Statement No. 18,
March 31, 2008) and “Guidance on Accounting Standard for Asset
Retirement Obligations” (ASBJ Guidance No. 21, March 31, 2008) are
applied.
Consequently, the amount of income before income taxes and minor-
ity interest decreased by 544 million yen. This adoption has immaterial
effect on either operating income or ordinary income.
2. Adoption of “Accounting Standard for Equity Method of Accounting
for Investments” and “Practical Solution on Unification of Accounting
Policies Applied to Associates Accounted for Using the Equity Method”
Effective from the current consolidated fiscal year, “Accounting Standard
for Equity Method of Accounting for Investments” (ASBJ Statement
No. 16, March 10, 2008) and “Practical Solution on Unification of
Accounting Policies Applied to Associates Accounted for Using the
Equity Method” (PITF No. 24, March 10, 2008) are applied.
This adoption has no effect on operating income and ordinary
income, income before taxes.
3. Adoption of Accounting Standards for Corporate Combination, etc.
Effective from the current consolidated fiscal year, “Accounting
Standard for Business Combinations” (ASBJ Statement No. 21,
December 26, 2008), “Accounting Standard for Consolidated Financial
Statements” (ASBJ Statement No. 22, December 26, 2008), “Partial
Amendments to Accounting Standard for Research and Development
Cost” (ASBJ Statement No. 23, December 26, 2008), “Accounting
Standard for Business Divestitures” (ASBJ Statement No. 7, December
26, 2008), “Accounting Standard for Equity Method of Accounting
for Investments” (ASBJ Statement No. 16, December 26, 2008), and
“Guidance on Accounting Standard for Business Combinations and
Accounting Standard for Business Divestitures” (ASBJ Guidance No. 10,
December 26, 2008) are applied.
2011
(as of March 31, 2011)
3. Securities
Fair value of securities of other securities as of March 31, 2011 and 2010 are as follows:
Millions of yen Thousands of U.S. dollars
Acquisition Carrying Unrealized Acquisition Carrying Unrealized
costs value gain (loss) costs value gain (loss)
Unrealized gain:
Stocks:
Total
Unrealized loss:
Stocks:
Total
$ 76,540
$ 76,540
$ (14,163)
$ (14,163)
$ 159,182
$ 159,182
$ 61,149
$ 61,149
$ 82,641
$ 82,641
$ 75,312
$ 75,312
¥ 6,364
¥ 6,364
¥ (1,177)
¥ (1,177)
¥ 13,236
¥ 13,236
¥ 5,084
¥ 5,084
¥ 6,871
¥ 6,871
¥ 6,262
¥ 6,262