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

「From the beginning of the first quarter of the consolidated fiscal year, the company and its consolidated subsidiaries have transitioned from the consolidated taxation system to the Group Tax Sharing System. Accordingly, the accounting treatment and disclosures for corporate income tax, local corporate tax and tax-effect accounting follow the Treatment of Accounting and Disclosure When Applying the Group Tax Sharing System…」

「The company and its consolidated subsidiaries have changed from the previously applied consolidated taxation system to the group aggregation system, effective from the first quarter of the current consolidated fiscal year.」

「The Company and its consolidated subsidiaries will transition from the consolidated taxation system to the group aggregation system from the next consolidated fiscal year.」

「Regarding matters established under the Group Tax Sharing System pursuant to the Act Partially Amending the Income Tax Act and Other Acts (Act No. 8 of 2020), and matters for which the single-company tax payment system was revised in connection with the transition to the Group Tax Sharing System, we calculated deferred tax assets and deferred tax liabilities based on the provisions of the tax laws before amendment, in accordance with the Treatment of Tax Effect Accounting for the Transition from the Consolidated Taxation System to the Group Tax Sharing System…」

「With respect 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 single-company tax payment system was revised in conjunction with that transition, the company and its consolidated subsidiaries did not apply the provisions of Paragraph 44 of the Implementation Guidance on Tax Effect Accounting (ASBJ Guidance No. 28, 16 February 2018), pursuant to 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 (ASBJ PITF No. 39, 31 March 2020). Accordingly, deferred tax assets and deferred tax liabilities were measured based on the provisions of the tax laws before amendment.」

「With respect 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 single-company tax payment system was revised in conjunction with that transition, the company and its consolidated subsidiaries did not apply the provisions of Paragraph 44 of the Implementation Guidance on Tax Effect Accounting (ASBJ Guidance No. 28, 16 February 2018), pursuant to 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 (ASBJ PITF No. 39, 31 March 2020). Accordingly, deferred tax assets and deferred tax liabilities were measured based on the provisions of the tax laws before amendment.」