Tax Effect Accounting Following the Transition to the Group Tax-Sharing System

「The Company and certain domestic consolidated subsidiaries apply the group tax-sharing system and account for and disclose corporate tax and local corporate tax, or tax-effect accounting related to these taxes, in accordance with “Accounting Treatment and Disclosure When Applying the Group Tax-Sharing System.”」

「The Company and certain domestic consolidated subsidiaries have applied the group aggregation system from the current consolidated fiscal year.」

「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 taxation system to the group tax-sharing system from the first-quarter consolidated accounting period. Accordingly, the accounting treatment and disclosure of corporate tax, local corporate tax, and tax-effect accounting comply with “Accounting Treatment and Disclosure When Applying 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.」

「Beginning at the start of the following consolidated fiscal year, the Company planned to apply the Practical Solution on Accounting and Disclosure under the Group Tax-Sharing System (Practical Solution Report No. 42, 12 August 2021), which prescribes accounting and disclosure treatments for corporate and local corporate taxes and tax-effect accounting when applying the group tax-sharing system.」

「With respect to the transition by the Company and certain domestic consolidated subsidiaries 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 matters relating to the review of the standalone tax payment system accompanying that transition, the Company has applied the treatment prescribed in Paragraph 3 of Practical Response Report No. 39, “Accounting Treatment for Applying Tax Effect Accounting in Connection with the Transition from the Consolidated Taxation System to the Group Tax-Sharing System,” and has calculated deferred tax assets and deferred tax liabilities based on the provisions of the tax laws before amendment, without applying Paragraph 44 of the Guidance on the Application of Tax Effect Accounting (ASBJ Guidance No. 28, 16 February 2018).」

「With respect to the transition by the Company and certain domestic consolidated subsidiaries 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 matters relating to the review of the standalone tax payment system accompanying that transition, the Company has applied the treatment prescribed in Paragraph 3 of Practical Response Report No. 39, “Accounting Treatment for Applying Tax Effect Accounting in Connection with the Transition from the Consolidated Taxation System to the Group Tax-Sharing System,” and has calculated deferred tax assets and deferred tax liabilities based on the provisions of the tax laws before amendment, without applying Paragraph 44 of the Guidance on the Application of Tax Effect Accounting (ASBJ Guidance No. 28, 16 February 2018).」

「With respect to the transition by the Company and certain domestic consolidated subsidiaries 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 matters relating to the review of the standalone tax payment system accompanying that transition, the Company has applied the treatment prescribed in Paragraph 3 of Practical Response Report No. 39, “Accounting Treatment for Applying Tax Effect Accounting in Connection with the Transition from the Consolidated Taxation System to the Group Tax-Sharing System,” and has calculated deferred tax assets and deferred tax liabilities based on the provisions of the tax laws before amendment, without applying Paragraph 44 of the Guidance on the Application of Tax Effect Accounting (ASBJ Guidance No. 28, 16 February 2018).」

「With respect to the transition by the Company and certain domestic consolidated subsidiaries 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 matters relating to the review of the standalone tax payment system accompanying that transition, the Company has applied the treatment prescribed in Paragraph 3 of Practical Response Report No. 39, “Accounting Treatment for Applying Tax Effect Accounting in Connection with the Transition from the Consolidated Taxation System to the Group Tax-Sharing System,” and has calculated deferred tax assets and deferred tax liabilities based on the provisions of the tax laws before amendment, without applying Paragraph 44 of the Guidance on the Application of Tax Effect Accounting (ASBJ Guidance No. 28, 16 February 2018).」

「With respect to the transition to the group tax sharing system established under the Act Partially Amending the Income Tax Act and Other Laws (Act No. 8 of 2020), and matters for which the single-company taxation system was revised in connection with that transition, the company and certain domestic consolidated subsidiaries apply the provisions of the tax laws before the amendment under Paragraph 3 of the Practical Solution on the Application of Tax Effect Accounting for the Transition from the Consolidated Taxation System to the Group Tax Sharing System.」