Yamaha 2010 Annual Report Download - page 57

2. CHANGES IN METHODS OF ACCOUNTING AND PRESENTATION
(a) Changes in methods of accounting
(1) Scope of consolidation
Effective the year ended March 31, 2010, “Guidance on Determining a Subsidiary and an Affiliate” (ASBJ Guidance No. 22, issued by
ASBJ on May 13, 2008) has been applied.
This change had no effect on profit or loss for the year ended March 31, 2010.
(2) Accounting standards for construction contracts
The Company and its consolidated subsidiaries have previously applied the completed-contract method for recognizing the revenues for
construction contracts. However, Effective the year ended March 31, 2010, accompanying the application of “Accounting Standard for
Construction Contracts” (ASBJ Statement No. 15, issued by the ASBJ on December 27, 2007) and “Guidance on Accounting Standard
for Construction Contracts” (ASBJ Guidance No. 18, issued by the ASBJ on December 27, 2007), the percentage-of-completion
method has been applied for the construction work under contract that commenced during the fiscal year ended March 31, 2010,
provided the outcome of the construction activity is deemed certain during the course of the activity (based on the ratio of costs
incurred to the estimated total cost to estimate the percentage of completion of construction activity).
For construction where uncertainty exists, the completed-contract method has been applied.
The effect of this change on profit and loss for the year ended March 31, 2010 was not material.
(3) Method of measurement of inventories
Effective the previous fiscal year, the Company and its domestic consolidated subsidiaries have applied the “Accounting Standard for
Measurement of Inventories” (ASBJ Statement No. 9, issued by the ASBJ on July 5, 2006) and the method of measurement of invento-
ries was changed from the lower of cost or market method to the cost method (reducing book value of inventories when their contribu-
tion to profitability declines), cost being determined by the last-in, first-out method. This change had no effect on profit and loss for the
year ended March 31, 2009.
(4) Accounting standards for lease transactions
Effective the previous fiscal year, the Company and its domestic consolidated subsidiaries have applied the “Accounting Standards for
Lease Transactions” (ASBJ Statement No. 13, originally issued by the Business Accounting Council, First Session on June 17, 1993,
and the final revision issued on March 30, 2007), and “Implementation Guidance on Accounting Standard for Lease Transactions”
(ASBJ Guidance No. 16, originally issued by the Accounting Committee of the Japanese Institute of Certified Public Accountants on
January 18, 1994, with the final revision issued on March 30, 2007). As a result, the accounting treatment for finance leases in which
ownership is not transferred to the lessee has been changed from methods applicable to operating lease transactions to methods appli-
cable to ordinary buying and selling transactions.
For finance leases in which ownership is not transferred to the lessee commencing on or before March 31, 2008, the Company
maintains its accounting treatments applicable to operating lease transactions. The effect of this change on profit and loss for the year
ended March 31, 2009 was not material.
(5) Application of Practical Solution on Unification of Accounting Policies Applied to Foreign Subsidiaries for Consolidated Financial Statements
Effective the previous fiscal year, the Company has applied “Practical Solution on Unification of Accounting Policies Applied to Foreign
Subsidiaries for Consolidated Financial Statements” (Practical Issues Task Force, No. 18, issued by the ASBJ on May 17, 2006), and
the necessary revisions have been made in the consolidated financial statements. The effect on profit and loss for the year ended March
31, 2009 and retained earnings at March 31, 2009 were not material. In previous fiscal years, the landrights at certain overseas consoli-
dated subsidiaries were included and presented in the item “Land,” however, they are now included in the item “Other” item under
“Investments and other assets,” and amounted to ¥1,503 million as of March 31, 2009.
(b) Changes in methods of presentation
Consolidated statements of cash flows
For the year ended March 31, 2009, “proceeds from liquidation of subsidiaries and affiliates,” which amounted to ¥183 million in that
fiscal year was included in the “Other, net” in the “Net cash provided (used in) investing activities” section of the consolidated statements
of cash flows. For the year ended March 31, 2010, this item has become material and, therefore, has been presented separately.
3. U.S. DOLLAR AMOUNTS
Solely for the convenience of the reader, the accompanying consolidated financial statements for the year ended March 31, 2010 have
been presented in U.S. dollars by translating all yen amounts at ¥93.04 = U.S.$1.00, the exchange rate prevailing on March 31, 2010.
This translation should not be construed as a representation that yen have been, could have been, or could in the future be converted into
U.S. dollars at the above or any other rate.
4. INVESTMENT SECURITIES
Investment securities at March 31, 2010 and 2009 were as follows:
Millions of Yen
Thousands of
U.S. Dollars
(Note 3)
2010 2009 2010
Investments in unconsolidated subsidiaries and affiliates ¥ 1,984 ¥ 2,269 $ 21,324
Other 78,059 54,862 838,983
Investment securities ¥80,044 ¥57,131 $860,318
Annual Report 2010 55
Financial Section