Tax Effect Accounting in the Transition from the Consolidated Taxation System to the Group Tax Sharing System

「The Company and certain domestic consolidated subsidiaries transitioned from the consolidated tax system to the group tax-sharing system from the beginning of the first quarter of the current fiscal year. Accordingly, accounting and disclosure for corporate income taxes, local corporate taxes and tax-effect accounting are conducted in accordance with the Practical Solution on Accounting and Disclosure Under the Group Tax-Sharing System.」

「The company and certain domestic consolidated subsidiaries have transitioned from the consolidated taxation system to the group tax sharing system from the first quarter. Accordingly, the accounting and disclosure treatment for corporation tax, local corporation tax and tax effect accounting is conducted in accordance with Practical Solution on the Accounting and Disclosure under the Group Tax Sharing System (ASBJ PITF No. 42, 12 August 2021, hereinafter “ASBJ PITF No. 42”).」

「The Company and certain domestic consolidated subsidiaries transitioned from the consolidated tax payment system to the group tax-sharing system from the first quarter.」

「The Company and certain domestic consolidated subsidiaries transitioned from the consolidated tax system to the group tax-sharing system from the beginning of the first quarter of the current fiscal year. Accordingly, accounting and disclosure for corporate income taxes, local corporate taxes and tax-effect accounting are conducted in accordance with the Practical Solution on Accounting and Disclosure Under the Group Tax-Sharing System.」

「The Company and its domestic consolidated subsidiaries will transition from the consolidated taxation system to the group-sharing system from the following consolidated fiscal year.」

「For us and certain domestic consolidated subsidiaries, with respect to the transition to the group aggregation system established under the Act Partially Amending the Income Tax Act and Other Acts (Act No. 8 of 2020), and the items for which the standalone tax system was revised in connection with that transition, the amounts of deferred tax assets and deferred tax liabilities are determined based on the provisions of the tax laws before amendment, in accordance with paragraph 3 of the Practical Response Report No. 39, “Treatment of Application of Tax Effect Accounting in Connection with the Transition from the Consolidated Taxation System to the Group Aggregation System” (31 March 2020), without applying the provisions of paragraph 44 of the Guidance on Accounting Standard for Tax Effect Accounting (ASBJ Guidance No. 28, 16 February 2018).」

「For us and certain domestic consolidated subsidiaries, with respect to the transition to the group aggregation system established under the Act Partially Amending the Income Tax Act and Other Acts (Act No. 8 of 2020), and the items for which the standalone tax system was revised in connection with that transition, the amounts of deferred tax assets and deferred tax liabilities are determined based on the provisions of the tax laws before amendment, in accordance with paragraph 3 of the Practical Response Report No. 39, “Treatment of Application of Tax Effect Accounting in Connection with the Transition from the Consolidated Taxation System to the Group Aggregation System” (31 March 2020), without applying the provisions of paragraph 44 of the Guidance on Accounting Standard for Tax Effect Accounting (ASBJ Guidance No. 28, 16 February 2018).」

「Our company and certain domestic consolidated subsidiaries will transition to the group sharing system established under the Act Partially Amending the Income Tax Act and Other Acts (Act No. 8 of 2020). For items revised in connection with the transition from the consolidated taxation system to the group sharing system, we apply the treatment under Paragraph 3 of Practical Solution No. 39 on the Application of Tax Effect Accounting for the Transition from the Consolidated Taxation System to the Group Sharing System and do not apply Paragraph 44 of the Implementation Guidance on Tax Effect Accounting. Deferred tax assets and liabilities are therefore measured based on the provisions of the tax laws before amendment.」

「For us and certain domestic consolidated subsidiaries, with respect to the transition to the group aggregation system established under the Act Partially Amending the Income Tax Act and Other Acts (Act No. 8 of 2020), and the items for which the standalone tax system was revised in connection with that transition, the amounts of deferred tax assets and deferred tax liabilities are determined based on the provisions of the tax laws before amendment, in accordance with paragraph 3 of the Practical Response Report No. 39, “Treatment of Application of Tax Effect Accounting in Connection with the Transition from the Consolidated Taxation System to the Group Aggregation System” (31 March 2020), without applying the provisions of paragraph 44 of the Guidance on Accounting Standard for Tax Effect Accounting (ASBJ Guidance No. 28, 16 February 2018).」

「For us and certain domestic consolidated subsidiaries, with respect to the transition to the group aggregation system established under the Act Partially Amending the Income Tax Act and Other Acts (Act No. 8 of 2020), and the items for which the standalone tax system was revised in connection with that transition, the amounts of deferred tax assets and deferred tax liabilities are determined based on the provisions of the tax laws before amendment, in accordance with paragraph 3 of the Practical Response Report No. 39, “Treatment of Application of Tax Effect Accounting in Connection with the Transition from the Consolidated Taxation System to the Group Aggregation System” (31 March 2020), without applying the provisions of paragraph 44 of the Guidance on Accounting Standard for Tax Effect Accounting (ASBJ Guidance No. 28, 16 February 2018).」

「For us and certain domestic consolidated subsidiaries, with respect to the transition to the group aggregation system established under the Act Partially Amending the Income Tax Act and Other Acts (Act No. 8 of 2020), and the items for which the standalone tax system was revised in connection with that transition, the amounts of deferred tax assets and deferred tax liabilities are determined based on the provisions of the tax laws before amendment, in accordance with paragraph 3 of the Practical Response Report No. 39, “Treatment of Application of Tax Effect Accounting in Connection with the Transition from the Consolidated Taxation System to the Group Aggregation System” (31 March 2020), without applying the provisions of paragraph 44 of the Guidance on Accounting Standard for Tax Effect Accounting (ASBJ Guidance No. 28, 16 February 2018).」