Pioneer 2012 Annual Report Download - page 35

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 consolidated statement of income are
dividends applicable to the respective years including
dividends to be paid after the end of the year.
u. 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 with revision of
accounting standards, the new policy is applied
retrospectively unless the revised accounting
standards include specific transitional provisions.
When the revised accounting standards include
specific transitional provisions, an entity shall
comply with the specific transitional provisions. (2)
Changes in Presentations—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.
This accounting standard and the guidance are
applicable to accounting changes and corrections
of prior period errors which are made from the
beginning of the fiscal year that begins on or after
April 1, 2011.
v. 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 effective
date of April 1, 2000, and the other related practical
guidances, being followed by partial amendments
from time to time through 2009.
Major changes are as follows:
(a) Treatment in the balance sheet — Under the
current requirements, actuarial gains and losses
and past service costs that are yet to be recognized
in profit or loss are not recognized in the balance
sheet, and the difference between retirement benefit
obligations and plan assets (hereinafter, “deficit or
surplus”), adjusted by such unrecognized amounts,
are recognized as a liability or asset.
Under the revised accounting standard, actuarial
gains and losses and past service costs that are yet
to be recognized in profit or loss shall be recognized
within equity (accumulated other comprehensive
income), after adjusting for tax effects, and the
deficit or surplus shall be recognized as a liability
(liability for retirement benefits) or asset (asset for
retirement benefits).
(b) Treatment in the statement of income and
the statement of comprehensive income (or the
statement of income and comprehensive income) —
The revised accounting standard would not change
how to recognize actuarial gains and losses and past
service costs in profit or loss. Those amounts would
be recognized in profit or loss over a certain period
no longer than the expected average remaining
working lives of the employees. However, actuarial
gains and losses and past service costs that arose in
the current period and yet to be recognized in profit
or loss shall be included in other comprehensive
income and actuarial gains and losses and past
service costs that were recognized in other
comprehensive income in prior periods and then
recognized in profit or loss in the current period shall
be treated as reclassification adjustments.
This accounting standard and the guidance are
effective for the end of annual periods beginning on
or after April 1, 2013, 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 expects to apply the revised
accounting standard from the end of the annual
period beginning on April 1, 2013 and is in the
process of measuring the effects of applying the
revised accounting standard for the year ending
March 31, 2014.
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Pioneer Corporation Annual Report 2012