Olympus 2010 Annual Report Download - page 43

OLYMPUS 2010 41
Cash dividends per common share are the amounts applicable to the respective periods.
(n) TRANSLATION OF FOREIGN CURRENCY FINANCIAL STATEMENTS
In accordance with the accounting standards for foreign currency translations, the balance sheet accounts of the foreign consolidated
subsidiaries are translated at exchange rates at the balance sheet date. Shareholders’ equity accounts are translated at historical
exchange rates. Revenues and expenses are translated at average exchange rates for each corresponding fiscal year. Differences arising
from translation are presented as “Foreign currency translation adjustments” in a separate component of net assets.
2. CHANGES IN ACCOUNTING POLICIES
(a) MEASUREMENT OF INVENTORIES
On July 5, 2006, the Accounting Standards Board of Japan issued ASBJ Statement No.9, “Accounting Standard for Measurement of
Inventories”. Prior to April 1, 2008, the Company and consolidated domestic subsidiaries stated inventories at the lower of market or cost
determined by the first-in-first-out method. The new accounting standard requires that inventories held for sale in the ordinary course of
business be measured at the lower of cost or net realizable value (which is defined as selling price less estimated additional manufacturing
costs and estimated direct selling expenses). Replacement cost may be used in lieu of the net realizable value, if appropriate.
The effect which this change has on the consolidated statements of operations was not material.
(b) PRACTICAL SOLUTION ON UNIFICATION OF ACCOUNTING POLICIES APPLIED TO FOREIGN SUBSIDIARIES FOR CONSOLIDATED
FINANCIAL STATEMENTS
Effective April 2008, PITF No. 18 has been adopted. As a result of this change, operating profit decreased by ¥134 million, loss before
provision for income taxes increased by ¥142 million and net loss increased by ¥1,941 million respectively for the year ended March 31 2009.
(c) LEASES
In the year ended March 31, 2009, the Company has adopted “Account ing standards for Lease Contract” (Corporate Accounting Standard No.
13, issued by the Business Accounting Council, First Session, on June 17, 1993 and revised on March 30, 2007), and Application Guidelines for
Accounting Standards for Lease contracts (Corporate Accounting Standards Application Guidelines No. 16, issued by the Accounting Committee
of the Japanese Institute of Certified Public Accountants on January 18, 1994 and revised on March 30, 2007). Before the application, the
accounting treatment for finance lease transactions that do not transfer ownership had followed the method for operating lease transactions, but
now after the application of it, the accounting treatment for those transactions followed the method for ordinary purchase and sales transactions.
The accounting treatment for finance lease contract that do not transfer ownership whose contract commenced before the first fiscal year in
which the Accounting Standard for Lease Contracts were applied followed the same method as for ordinary operating lease methods.
The effect which this change has on the consolidated statements of operations was not material.
(d) NET SALES AND COST OF SALES ON INVESTMENT SECURITIES FOR BUSINESS INCUBATIONS
Until the year ended March 31, 2009, proceeds from the sale of investment securities for business incubations were recorded as net sales and
the book values of the securities sold and valuation losses, etc. were recorded as cost of sales. Due to the changes in the investment policy,
from the fiscal year ended March 31, 2010, income/loss from such sales is recorded as other income (expenses).
The effect which this change has on the consolidated statements of operations was not material.
3. RECLASSIFICATIONS
(Consolidated Statements of Operations)
(a) Loss on investment in partnership
In the years ended March 31, 2010 and 2009, “Loss on investment in partnership”, formerly shown as an independent item, was included
in “Other, net” of Other Income (Expenses). The amounts of “Loss on investment in partnership” included in “Other, net” of Other Income
(Expenses) in fiscal 2010 and 2009 were immaterial.
(Consolidated Statements of Cash Flows)
(b) Sales of securities
In the years ended March 31, 2010 and 2009, “Sales of securities”, formerly shown as an independent item, was included in “Other” of Cash
Flows from Investing Activities. The amounts of “Sales of securities” included in “Other” of Cash Flows from Investing Activities in fiscal 2010
and 2009 were immaterial.
(c) Purchases of property, plant and equipment and Purchases of intangible assets
In the years ended March 31, 2010 and 2009, “Purchases of property, plant and equipment” and “Purchases of intangible assets”, formerly
included in “Purchases of property, plant and equipment” of Cash Flows from Investing Activities, were shown as an independent item. The
amount of “Purchases of property, plant and equipment” and “Purchases of intangible assets” included in “Purchases of property, plant and
equipment” of Cash Flows from Investing Activities in fiscal 2008 were ¥42,129 million and ¥5,824 million, respectively.