Olympus 2004 Annual Report Download - page 39

O LYMPUS 2 0 0 4 3 7
(k) RESEARCH AND DEVELO PMENT
Expenses relating to research and development activities are charged to income as incurred. To tal amo unts charged to income were ¥ 3 8 ,671
millio n ($351,5 5 5 thousand), ¥ 3 4,735 million and ¥ 30,477 millio n fo r the years ended March 3 1 , 2004, 2 0 0 3 and 2 0 02, respectively.
(l) CERTAIN LEASE TRANSACTIO N S
Finance leases which do no t transfer titles to lessees are accounted for in the same manner as o perating leases.
(m) IN CO ME TAXES
The Co mpany ado pts the accounting standard, which reco gnizes tax effects o f tempo rary differences between the financial statement carrying
amounts and the tax basis o f assets and liabilities. The pro visio n for inco me taxes is co mputed based on the pretax inco me included in the
co nsolidated statement o f income. The asset and liability appro ach is used to recognize deferred tax assets and liabilities for the expected
future tax co nsequences of temporary differences.
(
n ) AMO UNTS PER SHARE
Basic earnings per share (EPS) is computed by dividing inco me available to co mmo n shareholders by the weighted-average number o f com-
mon shares o utstanding for each fiscal year. Diluted EPS is similar to basic EPS except that the weighted-average o f co mmon shares o utstand-
ing is increased by the number o f additional co mmo n shares that wo uld have been outstanding if the po tentially dilutive co mmo n shares had
been issued. Fo r the years ended fo r March 3 1 , 2004, 2 0 0 3 and 2 0 02, there were no dilutive co mmo n shares. Acco rdingly, the Company’s
basic and dilutive earnings per share computations are the same for the perio ds presented.
Cash dividends per co mmon share are the amounts applicable to the respective perio ds.
(o) ACCO UN TING STANDARD FO R TREASURY STO CK AN D REVERSAL O F STATUTO RY RESERVES
Effective April 1 , 2002, the Co mpany ado pted the new acco unting standard fo r treasury sto ck and reversal of statuto ry reserves (Accounting
Standards Bo ard Statement No.1, “ Accounting Standard fo r Treasury Sto ck and Reductio n o f Statuto ry Reserves,” issued by the Acco unting
Standards Bo ard o f Japan on February 2 1 , 2 0 0 2).
The ado ption o f the new accounting standard had no impact o n the financial statements.
(p) EARN IN GS PER SHARE
Effective April 1 , 2002, the Co mpany ado pted the new acco unting standard for earnings per share and related g uidance (Acco unting
Standards Bo ard Statement No.2, “ Accounting Standard for Earnings Per Share” and Financial Standards Implementation G uidance N o.4,
“Implementation G uidance for Acco unting Standard for Earnings Per Share,” issued by the Acco unting Standards Board o f Japan on
September 2 5 , 2 0 0 2).
The effect o f the adoption of the new standard and guidance is disclo sed in the note fo r earnings per share.
2 . MARKETABLE AN D IN VESTMENT SECURITIES
The follo wing tables summarize acquisition costs, bo o k values and fair value o f securities with fair value as o f March 31, 200 4 and 2 0 03:
Available-fo r-sale securities
Securities with bo o k value (fair value) exceeding acquisitio n cost.
M illions of yen Thousands of U.S. dollars
2 0 0 4 2 0 0 3 2 0 0 4
Acquisitio n Bo o k Acquisition Book Acquisitio n Bo o k
c o st va lue Differenc e cost value Difference c o st value Differe nc e
Eq uity securities ................. ¥ 11,4 0 6 ¥ 1 9 ,2 55 ¥ 7,84 9 ¥ 1,3 9 6 ¥ 3,1 3 9 ¥ 1,7 4 3 $103,691 $175,045 $71,354
Bo nds . ... ... ... ... ... .... ... ... ... . 9 9 0 1 0 1 0 0 8 2 8 2 0
Others ............................... 36,078 36,599 521 35,577 35,888 311 3 2 7 ,9 8 2 3 3 2 ,7 1 8 4 ,7 3 6
To tal ....... .. .. .. .. .. .. .. .. .. .. .. .. ¥ 4 7 ,4 9 3 ¥ 5 5 ,8 6 3 ¥ 8 ,3 7 0 ¥ 3 6 ,9 8 3 ¥ 3 9 ,0 3 7 ¥ 2 , 0 5 4 $431,755 $507,845 $76,090
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