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

「The Company and certain consolidated subsidiaries transitioned from the consolidated taxation system to the group aggregation system from the first-quarter consolidated accounting period. Accordingly, the accounting treatment and disclosures for corporate income taxes, local corporate taxes and tax-effect accounting comply with the Treatment of Accounting and Disclosure When Applying the Group Aggregation System (Practical Response Report No. 42, 12 August 2021, hereinafter, “Practical Response Report No. 42”).」

「The Company and certain consolidated subsidiaries transitioned from the consolidated taxation system to the group aggregation system from the first-quarter consolidated accounting period. Accordingly, the accounting treatment and disclosures for corporate income taxes, local corporate taxes and tax-effect accounting comply with the Treatment of Accounting and Disclosure When Applying the Group Aggregation System (Practical Response Report No. 42, 12 August 2021, hereinafter, “Practical Response Report No. 42”).」

「The Company and certain consolidated subsidiaries transitioned from the consolidated taxation system to the group aggregation system from the beginning of the current first-quarter consolidated accounting period. Accordingly, the accounting treatment and disclosures for corporate income taxes, local corporate taxes and tax-effect accounting comply with the Treatment of Accounting and Disclosure When Applying the Group Aggregation System (Practical Response Report No. 42, 12 August 2021, hereinafter, “Practical Response Report No. 42”).」

「The Company and certain consolidated subsidiaries have transitioned 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 standalone taxation system was revised in connection with that transition, in accordance with the "Accounting Treatment for the Application of Tax Effect Accounting Related to the Transition from the Consolidated Taxation System to the Group Tax Sharing System"」

「The Company and certain consolidated subsidiaries have transitioned 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 standalone taxation system was revised in connection with that transition, in accordance with the "Accounting Treatment for the Application of Tax Effect Accounting Related to the Transition from the Consolidated Taxation System to the Group Tax Sharing System"」

「The Company and certain consolidated subsidiaries have applied the treatment set out in Paragraph 3 of the Practical Response Report No. 39, "Accounting Treatment for the Application of Tax Effect Accounting Related to the Transition from the Consolidated Taxation System to the Group Tax Sharing System" (31 March 2020), for items relating 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 standalone taxation system was revised in connection with that transition. Accordingly, the Company and those subsidiaries have not applied Paragraph 44 of the Guidance on the Application of Tax Effect Accounting (ASBJ Guidance No. 28, 16 February 2018), and have calculated deferred tax assets and deferred tax liabilities based on the provisions of the tax laws before the amendments.」

「The Company and certain consolidated subsidiaries have applied the treatment set out in Paragraph 3 of the Practical Response Report No. 39, "Accounting Treatment for the Application of Tax Effect Accounting Related to the Transition from the Consolidated Taxation System to the Group Tax Sharing System" (31 March 2020), for items relating 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 standalone taxation system was revised in connection with that transition. Accordingly, the Company and those subsidiaries have not applied Paragraph 44 of the Guidance on the Application of Tax Effect Accounting (ASBJ Guidance No. 28, 16 February 2018), and have calculated deferred tax assets and deferred tax liabilities based on the provisions of the tax laws before the amendments.」

「The Company and certain consolidated subsidiaries apply the provisions of Paragraph 3 of the Practical Response Report No. 39, Treatment of Tax Effect Accounting for the Transition from the Consolidated Taxation System to the Group Tax Sharing System (31 March 2020), to items established under the Act Partially Amending the Income Tax Act and Other Acts (Act No. 8 of 2020) in connection with the transition to the group tax sharing system and items reviewed in line with that transition from the single-entity taxation system. Accordingly, the amounts of deferred tax assets and deferred tax liabilities are based on the provisions of the tax laws before amendment.」