Nikon 2014 Annual Report Download - page 62

deferred until the underlying transactions have been completed.
Foreign currency swaps used to hedge the foreign currency fluctua-
tions of long-term debt denominated in foreign currencies are mea-
sured at fair value and the unrealized gains or losses are included in
the carrying amounts of the debt. Interest rate swaps, which qualify
for hedge accounting, are measured at market value at the balance
sheet date, and the unrealized gains or losses are deferred until
maturity. Interest rate swaps, which qualify for hedge accounting
and meet specific matching criteria, are not remeasured at market
value, but the differential paid or received under the swap agree-
ments is recognized and included in interest expense or income.
(p) Per Share Information
Basic net income per share is computed by dividing net income
available to common shareholders by the weighted-average number
of common shares outstanding for the period, retroactively adjusted
for stock splits.
Diluted net income per share reflects the potential dilution that
could occur if securities were exercised or converted into common
stock. Diluted net income per share of common stock assumes full
conversion of the outstanding convertible notes and bonds at the
beginning of the year (or at the time of issuance) with an applicable
adjustment for related interest expense, net of tax, and full exercise
of outstanding warrants.
Cash dividends per share presented in the accompanying consoli-
dated statement of income are dividends applicable to the respec-
tive years including dividends to be paid after the end of the year.
(q) Changes in Presentation
Consolidated balance sheet
For the fiscal year ended March 31, 2014, deferred tax liabilities,
included in “Other” under noncurrent liabilities in the previous
year, was individually presented in the balance sheet as the materi-
ality has increased. The amount of deferred tax liabilities in the pre-
vious year was ¥318 million. Deferred tax assets, on the other
hand, was presented individually in the previous year but included
in “Other” under investments and other assets in the fiscal year
under review due to the decrease of its materiality (¥7,646 million
at the end of the fiscal year under review).
(r) Accounting Changes and Error Corrections
In December 2009, the ASBJ issued ASBJ Statement No. 24,
“Accounting Standard for Accounting Changes and Error
Corrections,” and ASBJ Guidance No. 24, “Guidance on Accounting
Standard for Accounting Changes and Error Corrections.” Accounting
treatments under this standard and guidance are as follows:
(1) Changes in Accounting Policies
When a new accounting policy is applied following revision of
an accounting standard, the new policy is applied retrospec-
tively unless the revised accounting standard includes specific
transitional provisions, in which case the entity shall comply
with the specific transitional provisions.
(2) Changes in Presentation
When the presentation of financial statements is changed, prior-
period financial statements are reclassified in accordance with
the new presentation.
(3) Changes in Accounting Estimates
A change in an accounting estimate is accounted for in the
period of the change if the change affects that period only and
is accounted for prospectively if the change affects both the
period of the change and future periods.
(4) Corrections of Prior-Period Errors
When an error in prior-period financial statements is discovered,
those statements are restated.
(s) New Accounting Pronouncements
Accounting Standard for Retirement Benefits
On May 17, 2012, the ASBJ issued ASBJ Statement No. 26,
“Accounting Standard for Retirement Benefits” and ASBJ Guidance
No. 25, “Guidance on Accounting Standard for Retirement
Benefits,” which replaced the Accounting Standard for Retirement
Benefits that had been issued by the Business Accounting Council
in 1998 with an effective date of April 1, 2000, and the other
related practical guidance, and were followed by partial amend-
ments from time to time through 2009.
Major changes are as follows:
(a) Treatment in the balance sheet (please see (h) for more details)
(b) Treatment in the statement of income and the statement of
comprehensive income (please see 2. (h) for more details)
(c) Amendments relating to the method of attributing expected ben-
efit to periods and relating to the discount rate and expected
future salary increases
The revised accounting standard also made certain amendments
relating to the method of attributing expected benefit to periods and
relating to the discount rate and expected future salary increases.
This accounting standard and the guidance for (a) and (b) above
are effective for the end of annual periods beginning on or after
April 1, 2013, and for (c) above are effective for the beginning of
annual periods beginning on or after April 1, 2014, or for the begin-
ning of annual periods beginning on or after April 1, 2015, subject
to certain disclosure in March 2015, both with earlier application
being permitted from the beginning of annual periods beginning on
or after April 1, 2013. However, no retrospective application of this
accounting standard to consolidated financial statements in prior
periods is required.
The Company applied the revised accounting standard for (a) and
(b) above effective March 31, 2014, and expects to apply (c) above
from April 1, 2014, and is in the process of measuring the effects
of applying the revised accounting standard for (c) above in future
applicable periods.
FINANCIAL INFORMATION
Notes to Consolidated Financial Statements
60 NIKON REPORT 2014