Pioneer 2016 Annual Report Download - page 31

(b) Presentation of the consolidated balance sheet —
In the consolidated balance sheet, “Minority interest”
under the former accounting standard shall be
changed to “Noncontrolling interest” under the revised
accounting standard.
(c) Presentation of the consolidated statement of
income — In the consolidated statement of income,
“Income before minority interest” under the former
accounting standard shall be changed to “Net income”
under the revised accounting standard, and “Net
income” under the former accounting standard shall
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 reporting
period in which the business combination occurs, an
acquirer shall report in its financial statements provi-
sional amounts for the items for which the accounting
is incomplete. Under the former accounting standard
guidance, the impact of adjustments to provisional
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 former accounting standard,
the acquirer accounts for acquisition-related costs
by including them in the acquisition costs of the
investment. Under the revised accounting standard,
acquisition-related costs shall be accounted for as
expenses in the periods in which the costs are incurred.
The above accounting standards and guidance
for (a) transactions with noncontrolling interest, (b)
presentation of the consolidated balance sheet, (c)
presentation of the consolidated statement of income,
and (e) acquisition-related costs 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 (b) presentation of the con-
solidated balance sheet and (c) presentation of the
consolidated statement of income.
Either retrospective or prospective application of
the revised accounting standards and guidance for
(a) transactions with noncontrolling interest and (e)
acquisition-related costs is permitted. In retrospective
application of the revised standards and guidance, the
accumulated effects of retrospective adjustments for
all (a) transactions with noncontrolling interest and (e)
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 shall be
applied prospectively from the beginning of the year
of the first-time application.
The revised accounting standards and guidance
for (b) presentation of the consolidated balance sheet
and (c) presentation of the consolidated statement
of income 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 (d)
provisional accounting treatments for a business
combination are effective for a business combina-
tion which occurs on or after the beginning of annual
periods beginning on or after April 1, 2015.
The Company applied the revised account-
ing standards and guidance for (a) transactions
with noncontrolling interest, (b) presentation of the
consolidated balance sheet, (c) presentation of the
consolidated statement of income, and (e) acquisi-
tion-related costs above, effective April 1, 2015, and
(d) provisional accounting treatments for a business
combination above for a business combination which
occurred on or after April 1, 2015.
With respect to (b) presentation of the con-
solidated balance sheet and (c) presentation of the
consolidated statement of income, the applicable line
items in the 2015 consolidated financial statements
have been accordingly reclassified and presented in
line with those in 2016.
In the consolidated statement of cash flows for the
year ended March 31, 2016, cash flows for purchases
or sales of ownership interests in a subsidiary without
a change in consolidation scope are presented under
financing activities, and cash flows for acquisition-
related costs are presented under operating activities.
There was no effect from these accounting chenges.
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Pioneer Corporation Annual Report 2016