Application of Tax-Effect Accounting Accompanying the Transition to the Group Aggregation System

「From the first quarter of the current consolidated fiscal year, we and our domestic consolidated subsidiaries transitioned from the consolidated taxation system to the group tax sharing system. Accordingly, the accounting treatment and disclosure of corporate and local corporate taxes and tax-effect accounting comply with the Accounting Treatment and Disclosure for Application of the Group Tax Sharing System (Practical Response Report No. 42, dated 12 August 2021; hereinafter, Practical Response Report No. 42).」

「From the first quarter of the current consolidated fiscal year, we and our domestic consolidated subsidiaries transitioned from the consolidated taxation system to the group tax sharing system. Accordingly, the accounting treatment and disclosure of corporate and local corporate taxes and tax-effect accounting comply with the Accounting Treatment and Disclosure for Application of the Group Tax Sharing System (Practical Response Report No. 42).」

「The Company and certain consolidated subsidiaries have applied the provisions of 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 Aggregation System" (31 March 2020), 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 items for which the single-entity taxation system was revised in conjunction with that transition. Accordingly, the provisions of Paragraph 44 of the Guidance on Accounting Standard for Tax Effect Accounting (ASBJ Guidance No. 28, 16 February 2018) have not been applied, and deferred tax assets and deferred tax liabilities are calculated based on the provisions of the tax laws before the amendments.」