Pioneer 2013 Annual Report Download - page 35

Diluted net income (loss) per share reflects the
potential dilution that could occur if securities were
exercised or converted into common stock. Diluted
net income (loss) 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 out-
standing warrants.
Cash dividends per share presented in the ac-
companying consolidated statement of operations are
dividends applicable to the respective years including
dividends to be paid after the end of the year.
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 cur-
rent requirements, actuarial gains and losses and past
service costs that are yet to be recognized in profit or
loss are not recognized in the consolidated balance
sheet, and the difference between retirement benefit
obligations and plan assets (hereinafter, “deficit or
surplus”), adjusted by such unrecognized amounts, is
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), af-
ter 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 consolidated statement of opera-
tions and the consolidated statement of comprehensive
loss — 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 remain-
ing working lives of the employees. However, actuarial
gains and losses and past service costs that arose in
the current period and have not 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 reclas-
sification adjustments.
(c) Amendments relating to the method of attribut-
ing expected benefit to periods and relating to the
discount rate and expected future salary increases —
The revised accounting standard also made certain
amendments relating to the method of attributing ex-
pected benefit to periods and relating to the discount
rate and expected future salary increases.
This accounting standard and the guidance for (a) and
(b) above are effective for the end of annual periods
beginning on or after April 1, 2013, and for (c) above
are effective for the beginning of annual periods be-
ginning on or after April 1, 2014, or for the beginning
of annual periods beginning on or after April 1, 2015,
subject to certain disclosure in March 2015, both with
earlier application being permitted from the beginning
of annual periods beginning on or after April 1, 2013.
However, no retrospective application of this account-
ing standard to consolidated financial statements in
prior periods is required.
The Company expects to apply the revised ac-
counting standard for (a) and (b) above from the end
of the annual period beginning on April 1, 2013, and
for (c) above from the beginning of the annual period
beginning on April 1, 2014, and is in the process of
measuring the effects of applying the revised account-
ing standard in future applicable periods.
w. Consolidated Corporate Tax System
The Company has applied for a consolidated corpo-
rate tax system because the Company and some of
its consolidated subsidiaries are scheduled to adopt
the system from the year ending March 31, 2014. As
a result, the Company has been adopting account-
ing treatments as a prerequisite to the adoption of
consolidated corporate tax system in accordance with
PITF No. 5 “Practical Solution on Tentative Treatment
of Tax Effect Accounting Under Consolidated Taxation
System (Part 1)” and PITF No. 7 “Practical Solution
on Tentative Treatment of Tax Effect Accounting Un-
der Consolidated Taxation System (Part 2)” from the
current year.
x. Changes in the Method of Presentations
Consolidated Balance sheet
Prior to April 1, 2012, “Lease assets” was included in
“Others” among “Property, Plant and Equipment” of the
consolidated balance sheet. Since during this fiscal year
ended March 31, 2013, the amount increased signifi-
cantly, such amount is disclosed separately in “Property,
Plant and Equipment” of the consolidated balance sheet
as of March 31, 2013. The amount included in “Others”
as of March 31, 2012, was ¥990 million.
Pioneer Corporation Annual Report 2013
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