Sharp 2010 Annual Report Download - page 61

Corporate assets as of March 31, 2009 and 2010 were
¥442,849 million and ¥421,303 million ($4,579,380 thousand),
respectively, and were mainly comprised of the Company’s
cash and cash equivalents, investments in securities and
deferred tax assets.
Effective for the year ended March 31, 2009, the Com-
pany and its domestic consolidated subsidiaries have applied
the “Accounting Standard for Measurement of Inventories”
(Accounting Standards Board of Japan (ASBJ) Statement No.
9, issued by the ASBJ on July 5, 2006). As a result, for the
year ended March 31, 2009, operating loss for Consumer/
Information Products increases by ¥1,347 million and operat-
ing loss for Electronic Components increases by ¥3,927 mil-
lion, compared to amounts calculated under the previous
method. Also, valuation methods for raw materials and work
in process had previously been based on the last invoice
method. However, effective for the year ended March 31,
2009, the Company and its domestic consolidated subsidiar-
ies have adopted the moving average method in order to
properly reflect the impact of fluctuations in raw material
prices on financial statements, and to achieve more appropri-
ate periodic accounting of profit and loss. This change has an
immaterial impact on segmented information for the year
ended March 31, 2009.
Effective for the year ended March 31, 2009, the Com-
pany has applied the “Practical Solution on Unification of
Accounting Policies Applied to Foreign Subsidiaries for Con-
solidated Financial Statements” (ASBJ PITF No. 18, issued by
the ASBJ on May 17, 2006) and made revisions required for
consolidated accounting. As a result, for the year ended
March 31, 2009, operating loss for Consumer/Information
Products increases by ¥1,765 million and operating loss for
Electronic Components increases by ¥39 million, compared to
amounts calculated under the previous method.
Previously, lease payments under finance leases that do
not transfer ownership of the leased property to the lessee
had been recognized as expenses. However, effective for the
year ended March 31, 2009, the Company and its domestic
consolidated subsidiaries have applied the “Accounting
Standard for Lease Transactions” (ASBJ Statement No. 13,
revised on March 30, 2007 (originally issued by the 1st com-
mittee of the Business Accounting Council on June 17, 1993))
and the “Guidance on Accounting Standard for Lease Trans-
actions” (ASBJ Guidance No. 16, revised on March 30, 2007
(originally issued by the Auditing Standards Committee of
JICPA on January 18, 1994)) and are accounting for such
transactions as capital lease transactions. Finance leases that
do not transfer ownership for which the starting date of the
lease transaction is on and before March 31, 2008, lease
payments are recognized as expenses. This change has an
immaterial impact on segmented information for the year
ended March 31, 2009.
Previously, revenues and costs of construction contracts
had been recognized using the completed-contract method.
Effective for the year ended March 31, 2010, the Company
and its domestic consolidated subsidiaries have applied the
following accounting standards; “Accounting Standard for
Construction Contracts” (ASBJ Statement No. 15, issued by
the ASBJ on December 27, 2007) and the “Guidance on
Accounting Standard for Construction Contracts” (ASBJ
Guidance No. 18, issued by the ASBJ on December 27, 2007).
Accordingly, for construction contracts which commenced on
and after April 1, 2009, and for which the outcome of the
construction activity is deemed certain as of March 31, 2010,
the percentage-of-completion method has been applied,
otherwise the complete-contract method has been applied.
Under the percentage-of-completion method, revenue is
recognized, based on the percentage of the actual costs
incurred of the estimated total cost. This change has an
immaterial impact on segmented information for the year
ended March 31, 2010.
Financial Section
Annual Report 2010 59