Wacom 2008 Annual Report Download - page 30

Useful lives of major classes of property, plants and
equipment are as follows:
Buildings and facilities 3 to 65 years
Machinery, equipment and vehicles 5 to 13 years
Tools and furniture 2 to 20 years
(Change in accounting policy)
Depreciation for property, plant and equipment
acquired on and after April 1, 2007 has been changed
in conformity with the revised Corporation Tax Law of
Japan.
This change has an insignificant impact on the
consolidated statements of income.
(Additional information)
In accordance with the provisions of the revised
Corporation Tax Law of Japan, for property, plant and
equipment acquired on or before March 31, 2007, the
residual value of 5% shall be fully depreciated by
straight-line method in 5 years from the following fiscal
year until the book value reaches the residual value.
This change has an insignificant impact on the
consolidated statements of income.
(7) Intangible assets -
The Company amortizes intangible assets using the
straight-line method except for intangible assets with
indefinite useful lives held by subsidiaries in the United
States of America, which including goodwill are not
amortized, but instead are evaluated for impairment at
least annually in accordance with accounting
principles generally accepted in the United States of
America(U.S.GAAP).
(8) Software -
Software for internal use is amortized using the
straight-line method over an estimated useful life (5 years).
Software to be sold is amortized based on the estimated
volume of sales, with the minimum amortization amount
calculated based on a useful life of 3 years.
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(9) Provisions for bonuses to employees -
The provisions for bonuses to employees are
provided based on the estimated amounts expected
to be paid to the employees.
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(10) Provisions for bonuses to directors and statutory
corporate auditors -
The provisions for bonuses to directors and statutory
corporate auditors are provided based on the
estimated amounts expected to be paid for directors
and statutory corporate auditors.
(11) Accrued retirement benefits for employees -
Lump-sum severance indemnity regulations of the
Company, which cover substantially all employees in
Japan, provide for benefit payments determined by
reference to the employee's current basic rate of pay,
length of service, position in the Company and
termination circumstances. The accrued retirement
benefits represent the actuarially calculated present
value of projected benefit obligations except for, as
permitted under the accounting standard for
employees retirement benefits, the unrecognized
actuarial differences. The unrecognized actuarial
differences are amortized on a straight-line basis over
5 years beginning in the year after they arise.
(12) Accrued retirement benefits for directors and
statutory corporate auditors -
The Company provides an accrued lump-sum
severance indemnity for directors and statutory
corporate auditors at the full amount which would be
required to be paid if all directors and statutory
corporate auditors retired at the balance sheet date
based on the Company's internal regulations.
(13) Income taxes -
Deferred income taxes are recognized using the asset
and liability method. This method is used to recognize
deferred tax assets and liabilities for the expected
future tax consequences of temporary differences
between the carrying amounts of assets and liabilities
for financial reporting purposes and the amounts used
for income tax purposes.
(14) Leases -
Leases that transfer substantially all the risks and
rewards of ownership of the assets are accounted for
as finance leases. Leases that do not transfer
ownership of the assets at the end of the lease term
are accounted for as operating leases in accordance
with accounting principles and practices generally
accepted in Japan.
(15) Consumption taxes -
Consumption taxes are excluded from revenue and
expense accounts which are subject to such taxes.
(16) Foreign currency translation -
Foreign currency transactions are translated using
foreign exchange rates prevailing at the transaction
dates.
All monetary assets and liabilities denominated in
foreign currencies, whether they are long-term or
short-term, are translated into Japanese yen at the
exchange rates prevailing at the balance sheet date.
Resulting gains and losses are included in the
consolidated statements of income.
All assets and liabilities of consolidated subsidiaries
overseas are translated at current rates at the
respective balance sheet date and all the income and
expense accounts are translated at average rates for
respective periods. Foreign currency translation
adjustments are presented as a component of "Net
Assets" in the consolidated financial statements.
(17) Reclassifications -
Certain prior year accounts have been reclassified to
conform to the current year’s presentation.
3. Investment securities:
The following is certain information relating to the
aggregate acquisition cost and market value of
securities in fiscal year 2007.
(i)
Held-to-maturity debt securities with fair market value
There are not any items which should be disclosed in this section.
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