Pioneer 2009 Annual Report Download - page 33

Annual Report 2009 31
r. Per Share Information
Basic net income (loss) per share is computed by dividing net
income (loss) available to common shareholders by the
weighted-average number of common shares outstanding for
the period, retroactively adjusted for stock splits. Diluted net
income (loss) per share is not disclosed because of the
Company’s net loss position.
Cash dividends per share presented in the accompanying
consolidated statements of operations are dividends
applicable to the respective years including dividends to be
paid after the end of the year.
s. New Accounting Pronouncements
Business Combinations—
On December 26, 2008, the ASBJ issued a revised accounting
standard for business combinations, ASBJ Statement No. 21,
“Accounting Standard for Business Combinations.” Major
accounting changes under the revised accounting standard
are as follows:
(1) The current accounting standard for business
combinations allows companies to apply the pooling of
interests method of accounting when certain specific
criteria are met such that the business combination is
essentially regarded as a uniting-of-interests. The revised
standard requires to account for such business
combination by the purchase method and the pooling of
interests method of accounting is no longer allowed.
(2) The current accounting standard accounts for the research
and development costs to be charged to income as
incurred. Under the revised standard, an in-process
research and development (IPR&D) acquired by the
business combination is capitalized as an intangible asset.
(3) The current accounting standard accounts for a bargain
purchase gain (negative goodwill) to be systematically
amortized within 20 years. Under the revised standard, the
acquirer recognizes a bargain purchase gain in profit or loss
on the acquisition date after reassessing whether it has
correctly identified all of the assets acquired and all of the
liabilities assumed with a review of such procedures used.
This standard is applicable to business combinations
undertaken on or after April 1, 2010 with early adoption
permitted for fiscal years beginning on or after April 1, 2009.
Asset Retirement Obligations—
On March 31, 2008, the ASBJ published a new accounting
standard for asset retirement obligations, ASBJ Statement
No. 18 “Accounting Standard for Asset Retirement Obligations”
and ASBJ Guidance No. 21 “Guidance on Accounting
Standard for Asset Retirement Obligations.” Under this
accounting standard, an asset retirement obligation is defined
as a legal obligation imposed either by law or contract that
results from the acquisition, construction, development and the
normal operation of a tangible fixed asset and is associated
with the retirement of such tangible fixed asset.
The asset retirement obligation is recognized as the sum of
the discounted cash flows required for the future asset
retirement and is recorded in the period in which the obligation
is incurred if a reasonable estimate can be made. If a reasonable
estimate of the asset retirement obligation cannot be made in
the period the asset retirement obligation is incurred, the liability
should be recognized when a reasonable estimate of asset
retirement obligation can be made. Upon initial recognition of a
liability for an asset retirement obligation, an asset retirement
cost is capitalized by increasing the carrying amount of the
related fixed asset by the amount of the liability. The asset
retirement cost is subsequently allocated to expense through
depreciation over the remaining useful life of the asset. Over
time, the liability is accreted to its present value each period. Any
subsequent revisions to the timing or the amount of the original
estimate of undiscounted cash flows are reflected as an
increase or a decrease in the carrying amount of the liability and
the capitalized amount of the related asset retirement cost. This
standard is effective for fiscal years beginning on or after April 1,
2010 with early adoption permitted for fiscal years beginning on
or before March 31, 2010.