Application of Tax Effect Accounting in Connection with the Transition to the Group Tax Sharing System

「The company and its 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 fiscal year.」

「The Company and its domestic consolidated subsidiaries apply the provisions of 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" (31 March 2020), 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, they do not apply Paragraph 44 of the Guidance on Tax Effect Accounting (ASBJ Guidance No. 28, 16 February 2018) and calculate deferred tax assets and liabilities based on the provisions of the tax laws before amendment.」