JVC 2007 Annual Report Download - page 44

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42
3CHANGES IN ACCOUNTING METHOD
Business combination and business separation
Effective from the year ended March 31, 2007, the Company and its consolidated subsidiaries adopted the new
accounting standard, “Opinion Concerning Establishment of Accounting Standard for Business Combinations”
issued by the Business Accounting Deliberation Council on October 31, 2003 and “Accounting Standard for
Business Separations” (Statement No. 7 issued by the Accounting Standards Board of Japan on December 27,
2005) and the implementation guidance for the accounting standard for business combinations and separations
(the Financial Accounting Standard Implementation Guidance No. 10 issued by the Accounting Standards Board of
Japan on December 22, 2006).
4RELATIONSHIP WITH MATSUSHITA ELECTRIC INDUSTRIAL CO., LTD.
The Company is a subsidiary of Matsushita Electric Industrial Co., Ltd. (“Matsushita”). At March 31, 2007, Matsushita
held 133,227 thousand shares of common stock of the Company, 52.7% of the total outstanding shares.
Transactions between the Company and Matsushita for the years ended March 31, 2007, 2006 and 2005, and
the account balances between the two companies at March 31, 2007 and 2006 are not material.
5INVENTORIES
Inventories as of March 31, 2007 and 2006 are as follows:
Thousands of
Millions of yen U.S. dollars
2007 2006 2007
Finished goods ¥083,156 ¥91,687 $704,712
Work in process 6,606 9,295 55,983
Raw materials and supplies 14,013 18,113 118,754
¥103,775 ¥119,095 $879,449
6INVESTMENT SECURITIES
The following tables summarize acquisition costs and book values of securities with available fair values as of March
31, 2007 and 2006:
(1) Available-for-sale securities with available fair values
Millions of yen
Acquisition
cost Book value Difference
2007:
Securities with available fair values exceeding acquisition costs:
Equity securities ¥1,001 ¥5,485 ¥4,484
Securities with available fair values not exceeding acquisition costs:
Equity securities 398 375 (23)
Total ¥1,399 ¥5,860 ¥4,461
Millions of yen
Acquisition
cost Book value Difference
2006:
Securities with available fair values exceeding acquisition costs:
Equity securities ¥2,966 ¥13,461 ¥10,495
Securities with available fair values not exceeding acquisition costs:
Equity securities 8 7 (1)
Total ¥2,974 ¥13,468 ¥10,494
42