Tax-effect accounting in connection with the transition to the group tax sharing system

「The Company and certain domestic consolidated subsidiaries transitioned from the consolidated taxation system to the group tax sharing system from the beginning of the first quarter of the current consolidated fiscal year. Accordingly, accounting and disclosure for corporate and local taxes and tax effect accounting comply with the “Implementation Guidance on Accounting and Disclosure under the Group Tax Sharing System” (ASBJ Practical Issues Task Force Report No. 42, 12 August 2021).」

「The Company and certain domestic consolidated subsidiaries have applied the treatment under Paragraph 3 of Practical Response Report No. 39, Treatment of Tax Effect Accounting for the Transition from the Consolidated Taxation System to the Group Tax Sharing System, for the transition to the group tax sharing system established by the Act Partially Amending the Income Tax Act and Other Acts (Act No. 8 of 2020). Accordingly, for items involving revisions to the single-entity taxation system accompanying the transition, the provisions of Paragraph 44 of the Implementation Guidance on Tax Effect Accounting have not been applied, and deferred tax assets and liabilities have been measured under the provisions of the tax laws before amendment.」

「The company and certain domestic consolidated subsidiaries, with respect to the transition to the group tax-sharing system established under the Act Partially Amending the Income Tax Act and Other Acts (Act No. 8 of 2020), and items for which the single-entity taxation system was revised in connection with that transition, have, pursuant to the treatment stipulated in Paragraph 3 of the Practical Response Report No. 39, “Treatment of the Application of Tax Effect Accounting in Connection with the Transition from the Consolidated Taxation System to the Group Tax-Sharing System,” calculated deferred tax assets and deferred tax liabilities based on the provisions of the tax laws before revision.」

「The company and certain domestic consolidated subsidiaries, with respect to the transition to the group tax-sharing system established under the Act Partially Amending the Income Tax Act and Other Acts (Act No. 8 of 2020), and items for which the single-entity taxation system was revised in connection with that transition, have, pursuant to the treatment stipulated in Paragraph 3 of the Practical Response Report No. 39, “Treatment of the Application of Tax Effect Accounting in Connection with the Transition from the Consolidated Taxation System to the Group Tax-Sharing System,” applied the provisions of Paragraph 44 of the Implementation Guidance on Accounting Standard for Tax Effect Accounting, and have calculated deferred tax assets and deferred tax liabilities based on the provisions of the tax laws before revision.」

「Income tax expense is calculated by reasonably estimating the effective tax rate after applying tax-effect accounting to profit before income taxes for the fiscal year that includes the current third quarter of the consolidated fiscal year, and multiplying profit before income taxes for the quarter by that estimated effective tax rate.」

「The company and certain domestic consolidated subsidiaries, with respect to the transition to the group tax-sharing system established under the Act Partially Amending the Income Tax Act and Other Acts (Act No. 8 of 2020), and items for which the single-entity taxation system was revised in connection with that transition, have, pursuant to the treatment stipulated in Paragraph 3 of the Practical Response Report No. 39, “Treatment of the Application of Tax Effect Accounting in Connection with the Transition from the Consolidated Taxation System to the Group Tax-Sharing System” (31 March 2020),」