Tax-Effect Accounting in Connection with the Transition from the Consolidated Taxation System to the Group Aggregate Taxation System

「The Company and certain domestic consolidated subsidiaries have transitioned from the consolidated taxation system to the group tax sharing system from the first quarter of the current consolidated fiscal year. Accordingly, the accounting treatment and disclosures for corporate and local corporate taxes and tax-effect accounting are being made in accordance with the "Accounting and Disclosure Under the Group Tax Sharing System" (Practical Response Report No. 42, 12 August 2021; hereinafter, "Practical Response Report No. 42").」

「The company and certain domestic consolidated subsidiaries have transitioned from the consolidated taxation system to the group tax sharing system from the beginning of the first quarter of the current consolidated fiscal year.」

「For the Company and certain consolidated subsidiaries, with respect to the transition to the group-wide tax sharing system established under the Act Partially Amending the Income Tax Act and Other Acts (Act No. 8 of 2020) and the items for which the separate taxation system was revised in connection with that transition, the provisions of Paragraph 44 of the “Guidance on the Application of Accounting Standards for Tax Effect Accounting” (ASBJ Guidance No. 28, 16 February 2018) are not applied pursuant to Paragraph 3 of the “Treatment of Applying Tax Effect Accounting in Connection with the Transition from the Consolidated Taxation System to the Group-Wide Tax Sharing System” (ASBJ Practical Issues Task Force Report No. 39, 31 March 2020), and the amounts of deferred tax assets and deferred tax liabilities are determined based on the tax laws in effect before the amendments.」

「For the Company and certain consolidated subsidiaries, with respect to the transition to the group-wide tax sharing system established under the Act Partially Amending the Income Tax Act and Other Acts (Act No. 8 of 2020) and the items for which the separate taxation system was revised in connection with that transition, the provisions of Paragraph 44 of the “Guidance on the Application of Accounting Standards for Tax Effect Accounting” (ASBJ Guidance No. 28, 16 February 2018) are not applied pursuant to Paragraph 3 of the “Treatment of Applying Tax Effect Accounting in Connection with the Transition from the Consolidated Taxation System to the Group-Wide Tax Sharing System” (ASBJ Practical Issues Task Force Report No. 39, 31 March 2020), and the amounts of deferred tax assets and deferred tax liabilities are determined based on the tax laws in effect before the amendments.」

「For the Company and certain consolidated subsidiaries, with respect to the transition to the group-wide tax sharing system established under the Act Partially Amending the Income Tax Act and Other Acts (Act No. 8 of 2020) and the items for which the separate taxation system was revised in connection with that transition, the provisions of Paragraph 44 of the “Guidance on the Application of Accounting Standards for Tax Effect Accounting” (ASBJ Guidance No. 28, 16 February 2018) are not applied pursuant to Paragraph 3 of the “Treatment of Applying Tax Effect Accounting in Connection with the Transition from the Consolidated Taxation System to the Group-Wide Tax Sharing System” (ASBJ Practical Issues Task Force Report No. 39, 31 March 2020), and the amounts of deferred tax assets and deferred tax liabilities are determined based on the tax laws in effect before the amendments.」

「For the Company and certain consolidated subsidiaries, with respect to the transition to the group-wide tax sharing system established under the Act Partially Amending the Income Tax Act and Other Acts (Act No. 8 of 2020) and the items for which the separate taxation system was revised in connection with that transition, the provisions of Paragraph 44 of the “Guidance on the Application of Accounting Standards for Tax Effect Accounting” (ASBJ Guidance No. 28, 16 February 2018) are not applied pursuant to Paragraph 3 of the “Treatment of Applying Tax Effect Accounting in Connection with the Transition from the Consolidated Taxation System to the Group-Wide Tax Sharing System” (ASBJ Practical Issues Task Force Report No. 39, 31 March 2020), and the amounts of deferred tax assets and deferred tax liabilities are determined based on the tax laws in effect before the amendments.」

「For the Company and certain consolidated subsidiaries, with respect to the transition to the group-wide tax sharing system established under the Act Partially Amending the Income Tax Act and Other Acts (Act No. 8 of 2020) and the items for which the separate taxation system was revised in connection with that transition, the provisions of Paragraph 44 of the “Guidance on the Application of Accounting Standards for Tax Effect Accounting” (ASBJ Guidance No. 28, 16 February 2018) are not applied pursuant to Paragraph 3 of the “Treatment of Applying Tax Effect Accounting in Connection with the Transition from the Consolidated Taxation System to the Group-Wide Tax Sharing System” (ASBJ Practical Issues Task Force Report No. 39, 31 March 2020), and the amounts of deferred tax assets and deferred tax liabilities are determined based on the tax laws in effect before the amendments.」

「For the Company and certain consolidated subsidiaries, with respect to the transition to the group-wide tax sharing system established under the Act Partially Amending the Income Tax Act and Other Acts (Act No. 8 of 2020) and the items for which the separate taxation system was revised in connection with that transition, the provisions of Paragraph 44 are not applied under the “Treatment of Applying Tax Effect Accounting in Connection with the Transition from the Consolidated Taxation System to the Group-Wide Tax Sharing System” … and the amounts of deferred tax assets and deferred tax liabilities are determined based on the tax laws in effect before the amendments.」