Toshiba 1999 Annual Report Download - page 55

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TOSHIBA ANNUAL REPORT 1999
In March 1998, the American Institute of Certified Public Accountants issued Statement of Position (SOP) 98-1, “Accounting
for the Costs of Computer Software Developed or Obtained for Internal Use.” This SOP provides guidance on accounting for the
costs of computer software developed or obtained solely to meet the company’s internal needs and, in the case of the company,
is effective for the fiscal year beginning April 1, 1999. Currently, the company is in the process of evaluating the impact from
adoption of this SOP on its results of operations or financial conditions.
RECLASSIFICATIONS –
Certain reclassifications of previously reported amounts have been made to conform with current classifications.
3. U.S. DOLLAR AMOUNTS:
U.S. dollar amounts are included solely for convenience. These translations should not be construed as representations that the
yen amounts actually represent, or have been or could be converted into, U.S. dollars. The amounts shown in U.S. dollars are not
intended to be computed in accordance with generally accepted accounting principles for the translation of foreign currency
amounts. The rate of ¥121=US$1, the approximate current rate of exchange at March 31, 1999, has been used throughout for the
purpose of presentation of the U.S. dollar amounts in the accompanying consolidated financial statements.
4. MARKETABLE SECURITIES AND OTHER INVESTMENTS:
The Financial Accounting Standards Board has issued Statement of Financial Accounting Standards (SFAS) No. 115,
“Accounting for Certain Investments in Debt and Equity Securities,” addressing the accounting and reporting for certain
investments in debt and equity securities classified as held-to-maturity, trading, or available-for-sale securities. Under SFAS
No. 115, the debt and equity securities owned by the company should be classified as available-for-sale securities and should
be reported at fair value with unrealized gains and losses, net of related taxes, excluded from earnings and reported in other
comprehensive income (loss) until realized. However, the company has not adopted this standard which became effective for
the fiscal year beginning April 1, 1994.
The effects on balance sheet items of the company’s departure from the provisions of SFAS No. 115 as of March 31, 1999 and
1998 are summarized as follows:
Thousands of
Millions of yen U.S. dollars
March 31 1999 1998 1999
Shareholders’ equity as reported . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥1,050,336 ¥1,201,615 $8,680,463
Net increase in the carrying amount of:
Marketable securities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104,156 129,250 860,793
Other investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27,808 64,202 229,818
Net decrease in deferred tax assets:
Prepaid expenses and other current assets . . . . . . . . . . . . . . . . . . . . (44,345) (61,710) (366,488)
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (11,629) (30,614) (96,107)
Net decrease in minority interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 149 372
Net increase in investments in affiliated companies . . . . . . . . . . . . . . 2,382 3,054 19,686
Net unrealized gain on available-for-sale securities . . . . . . . . . . . . . . . . 78,417 104,331 648,074
Shareholders’ equity in accordance with accounting principles
generally accepted in the United States of America . . . . . . . . . . . . . . . ¥1,128,753 ¥1,305,946 $9,328,537
The net unrealized gain on available-for-sale securities decreased by ¥25,914 million ($214,165 thousand) and ¥19,721 million
during the years ended March 31, 1999 and 1998, respectively. If the provisions of SFAS No. 115 had been adopted, comprehen-
sive loss for the years ended March 31, 1999 and 1998 would have been ¥151,442 million ($1,251,587 thousand) and ¥50,693
million, respectively.