Trend Micro 2014 Annual Report Download - page 29

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(Changes in accounting standard for retirement benefits)
From this fiscal year, the Company has adopted "Accounting Standard for Retirement
period-end rates of exchange and
all income and expense accounts
are translated at average
exchange rate. The resulting
foreign currency translation
adjustments are included in
accumulated other comprehensive
income (loss) and minority
interest.
(5) Other important matters
for preparing
financial statements
A. Consumption tax
Transactions subject to
consumption tax is stated at the
amount net of the related
consumption tax.
A. Consumption tax
 Same as left
B. Revenue recognition method for
Post Contract Customer Support
Service
Basically, the product license
agreement contracted with the
end-user states the article for
PCS (customer support and
upgrading of products and its
pattern files).
The company applies the following
revenue recognition method for
the portion of PCS. Portion of
PCS revenue is recognized
separately from total revenue and
is deferred as deferred revenues
under current and non-current
liabilities based on the
contracted period.
Deferred revenue is finally
recognized as revenue evenly over
the contracted period.
B. Revenue recognition method for
Post Contract Customer Support
Service
 Same as left
6 Amortization of Goodwill Goodwill is amortized evenly
over the appropriate period in
less than 20 years.
Same as left
7 Definition of cash and
cash equivalent in the
consolidated statements
of cash flows
Cash and cash equivalents in the
consolidated statements of cash
flows are composed of cash in
hand, bank deposits able to be
withdrawn on demand and short-
term investments with an original
maturity of three months or less
and representing a minor risk of
fluctuations in value.
Same as left
(7) Change of the Accounting Policy
26