Pioneer 2015 Annual Report Download - page 18

The above accounting standards and guidance
for “transactions with noncontrolling interest,” “acqui-
sition-related costs” and “presentation changes in the
consolidated financial statements” are effective for
the beginning of annual periods beginning on or after
April 1, 2015. Earlier application is permitted from
the beginning of annual periods beginning on or after
April 1, 2014, except for the presentation changes in
the consolidated financial statements. In the case of
earlier application, all accounting standards and guid-
ance above, except for the presentation changes,
should be applied simultaneously. Either retrospective
or prospective application of the revised accounting
standards and guidance for “transactions with non-
controlling interest” and “acquisition-related costs” is
permitted. In retrospective application of the revised
standards and guidance for “transactions with non-
controlling interest” and “acquisition-related costs,”
accumulated effects of retrospective adjustments
for all “transactions with noncontrolling interest” and
“acquisition-related costs” which occurred in the past
shall be reflected as adjustments to the beginning
balance of capital surplus and retained earnings for
the year of the first-time application.
In prospective application, the new standards
and guidance for “transactions with noncontrolling
interest” and “acquisition-related costs” shall be ap-
plied prospectively from the beginning of the year of
the first-time application. The changes in presentation
shall be applied to all periods presented in financial
statements containing the first-time application of the
revised standards and guidance.
The revised standards and guidance for “pro-
visional accounting treatments for a business
combination” are effective for a business combination
which will occur on or after the beginning of annual
periods beginning on or after April 1, 2015. Earlier
application is permitted for a business combination
which will occur on or after the beginning of annual
periods beginning on or after April 1, 2014.
The Company expects to apply the revised ac-
counting standards and guidance from the beginning
of the annual period beginning on April 1, 2015, and
is in the process of measuring the effects of applying
the revised accounting standards and guidance in
future applicable periods.
v. Consolidated Corporate Tax System
The Group files a tax return under the consolidated
corporate tax system, which allows companies to
base tax payments on the combined profits or losses
of the parent company and its wholly owned domestic
subsidiaries.
value of the consideration received or paid and the
amount by which the minority interest is adjusted is
accounted for as an adjustment of goodwill or as
profit or loss in the consolidated statement of opera-
tions. Under the revised accounting standard, such
difference shall be accounted for as capital surplus as
long as the parent retains control over its subsidiary.
(b) Presentation of the consolidated balance sheet — In
the consolidated balance sheet, “Minority interest” un-
der the current accounting standard will be changed to
“Noncontrolling interest” under the revised accounting
standard.
(c) Presentation of the consolidated statement of
operations — In the consolidated statement of op-
erations, “Income before minority interest” under the
current accounting standard will be changed to “Net
income” under the revised accounting standard, and
“Net income” under the current accounting standard
will be changed to “Net income attributable to owners
of the parent” under the revised accounting standard.
(d) Provisional accounting treatments for a business
combination — If the initial accounting for a business
combination is incomplete by the end of the report-
ing period in which the business combination occurs,
an acquirer shall report in its financial statements
provisional amounts for the items for which the ac-
counting is incomplete. Under the current accounting
standard guidance, the impact of adjustments to pro-
visional amounts recorded in a business combination
on profit or loss is recognized as profit or loss in the
year in which the measurement is completed. Under
the revised accounting standard guidance, during the
measurement period, which shall not exceed one year
from the acquisition, the acquirer shall retrospectively
adjust the provisional amounts recognized at the
acquisition date to reflect new information obtained
about facts and circumstances that existed as of the
acquisition date and that would have affected the
measurement of the amounts recognized as of that
date. Such adjustments shall be recognized as if the
accounting for the business combination had been
completed at the acquisition date.
(e) Acquisition-related costs — Acquisition-related
costs are costs, such as advisory fees or professional
fees, which an acquirer incurs to effect a business
combination. Under the current accounting standard,
the acquirer accounts for acquisition-related costs
by including them in the acquisition costs of the in-
vestment. Under the revised accounting standard,
acquisition-related costs shall be accounted for as ex-
penses in the periods in which the costs are incurred.
Unlisted securities are not included above because they do not have a quoted market price in an active market. The
information for these investments is disclosed in Note 17.
There were no available-for-sale securities that the Group sold during the year ended March 31, 2014.
Cost, unrealized gains and losses and aggregate fair values of investment securities as of March 31, 2015 and 2014,
were as follows:
3. Investment Securities
Millions of Yen Millions of Yen
2015 2014
Cost
Unrealized
Gains
Unrealized
Losses Fair Value Cost
Unrealized
Gains
Unrealized
Losses Fair Value
Available-for-sale:
Equity securities ¥1,966 ¥46 ¥130 ¥1,882 ¥3,317 ¥1,603 – ¥4,920
Total ¥1,966 ¥46 ¥130 ¥1,882 ¥3,317 ¥1,603 – ¥4,920
Thousands of U.S. Dollars
2015
Cost
Unrealized
Gains
Unrealized
Losses Fair Value
Available-for-sale:
Equity securities $16,383 $383 $1,083 $15,683
Total $16,383 $383 $1,083 $15,683
Millions of Yen
Thousands of
U.S. Dollars
2015 2015
Proceeds from sales:
Equity securities ¥4,609 $38,408
Others ––
Total ¥4,609 $38,408
Gains on sales:
Equity securities ¥1,596 $13,300
Others ––
Total ¥1,596 $13,300
Available-for-sale securities that the Group sold during the year ended March 31, 2015 were as follows:
Inventories as of March 31, 2015 and 2014, consisted of the following:
4. Inventories
Millions of Yen
Thousands of
U.S. Dollars
2015 2014 2015
Finished products ¥29,039 ¥34,778 $241,992
Work in process 11,065 11,279 92,208
Raw materials and supplies 23,191 24,314 193,259
Total ¥63,295 ¥70,371 $527,459
32 Pioneer Corporation Annual Report 2015 33
Pioneer Corporation Annual Report 2015