Application of Practical Solution Report No. 18 and Other Guidance on Accounting Treatment for Overseas Subsidiaries and Other Entities

「The company adopted, from the beginning of the current consolidated fiscal year, “Temporary Treatment of Accounting at Overseas Subsidiaries and Other Entities in Preparing Consolidated Financial Statements” (Practical Solution Report No. 18, 14 September 2018) and “Temporary Treatment of Accounting at Associates Accounted for Using the Equity Method” (Practical Solution Report No. 24, 14 September 2018),」

「The company adopted, from the beginning of the current first quarter of the consolidated fiscal year, “Temporary Treatment of Accounting at Overseas Subsidiaries and Other Entities in Preparing Consolidated Financial Statements” (Practical Solution Report No. 18, 14 September 2018) and “Temporary Treatment of Accounting at Associates Accounted for Using the Equity Method” (Practical Solution Report No. 24, 14 September 2018) (hereinafter, “Practical Solution Report No. 18 and other guidance”). When overseas subsidiaries and other entities apply IFRS 9, Financial Instruments, and elect to present subsequent changes in the fair value of equity instruments in other comprehensive income, gains or losses on the sale of such equity instruments and impairment losses equivalent to those amounts are now adjusted as current-period profit or loss in the consolidated closing process.」