Olympus 2007 Annual Report Download - page 41

OLYMPUS 2007 39
(e) ACCOUNTING STANDARDS FOR PRESENTATION OF NET ASSETS IN THE BALANCE SHEET
In the year ended March 31, 2007, the Company has adopted new accounting standards, “Accounting Standard for Presentation of Net Assets
in the Balance Sheet” (Statement No. 5 issued by the Accounting Standards Board of Japan on December 9, 2005), and the implementation
guidance for the accounting standard for presentation of net assets in the balance sheet (the Financial Accounting Standard Implementation
Guidance No. 8 issued by the Accounting Standards Board of Japan on December 9, 2005).
As of March 31, 2007, the consolidated balance sheets were prepared according to the new accounting standards comprising three sec-
tions: assets, liabilities and net assets. The consolidated balance sheet as of March 31, 2006 prepared pursuant to the previous presentation
rules comprises assets, liabilities, minority interests and shareholders’ equity sections. Under the new accounting standards, the following items
are presented differently at March 31, 2007 compared to March 31, 2006. The net assets section includes net unrealized losses on hedging
derivatives, net of taxes. Under the previous presentation rules, net unrealized losses on hedging derivatives, net of taxes, were included in
the assets or liabilities sections without considering the related income tax effects. Minority interests are included in the net assets section
at March 31, 2007. Under the previous presentation rules, companies were required to present minority interests between the non-current
liabilities and the shareholders’ equity sections. The adoption of the new accounting standard had no impacts on the consolidated statement
of operations for the year ended March 31, 2007. Also, if the new accounting standards had not been adopted at March 31, 2007, sharehold-
ers’ equity amounting to ¥334,394 million ($2,786,616 thousand) would have been presented.
(f) ACCOUNTING STANDARDS FOR STATEMENT OF CHANGES IN NET ASSETS
In the year ended March 31, 2007, the Company has adopted the new accounting standard, “Accounting Standard for Statement of Changes
in Net Assets” (Statement No. 6 issued by the Accounting Standards Board of Japan on December 27, 2005), and the implementation guid-
ance for the accounting standard for statement of changes in net assets (the Financial Accounting Standard Implementation Guidance No. 9
issued by the Accounting Standards Board of Japan on December 27, 2005).
The Company prepared the accompanying consolidated statement of changes in net assets for the year ended March 31, 2007 in accor-
dance with the new accounting standards. The accompanying consolidated statement of shareholders’ equity for the year ended March 31,
2006, which was voluntarily prepared for inclusion in the consolidated financial statements, has not been adapted to the new presentation
rules of 2007.
(g) ACCOUNTING STANDARDS FOR BUSINESS COMBINATION AND BUSINESS SEPARATION
In the year ended March 31, 2007, the Company has adopted “Accounting Standards for business combination” (Business Accounting Council,
October 31, 2003) and “Accounting Standards for business separation” (Corporate Accounting Standard No. 7 regarding “the business sepa-
ration” issued on December 27, 2005) and “Implementation guidance for Accounting Standards for business combination and separation”
(Accounting Standard Board of Japan, Financial Accounting Standards Implementation Guidance No. 10, December 9, 2005).
(h) CHANGE IN ACCOUNTING STANDARDS FOR RETIREMENT BENEFITS IN THE UNITED STATES ADOPTED BY CONSOLIDATED
SUBSIDIARIES IN THE UNITED STATES
In the year ended March 31, 2007, consolidated subsidiaries in the United States adopted a new accounting standard for retirement benefits
in the United States.
The effect of this change was to decrease retained earnings by ¥2,443 million ($20,358 thousand) since the unrecognized actuarial dif-
ference amounting to ¥2,443 million ($20,358 thousand) was directly charged to retained earnings for the year ended March 31, 2007. The
adoption of this new accounting standard has no impact on net income.
3. SECURITIES
The following tables summarize acquisition costs, book values and fair value of securities with fair value as of March 31, 2007 and 2006:
Available-for-sale securities
Securities with book value (fair value) exceeding acquisition cost.
Millions of yen Thousands of U.S. dollars
2007 2006 2007
Acquisition Book Acquisition Book Acquisition Book
cost Value Difference cost Value Difference cost Value Difference
Equity securities .................. ¥ 39,762 ¥ 63,745 ¥23,983 ¥41,269 ¥ 65,778 ¥24,509 $ 331,350 $ 531,208 199,858
Bonds ............................... — — — — — — — — —
Others ............................... 96,078 97,987 1,909 36,078 37,371 1,293 800,650 816,559 15,909
Total ............................... ¥135,840 ¥161,732 ¥25,892 ¥77,347 ¥103,149 ¥25,802 $1,132,000 $1,347,767 $215,767