Tax-Effect Accounting Treatment in Connection with the Transition to the Group Aggregation System

「The Company and its 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 income taxes, local corporate taxes and tax effect accounting are conducted in accordance with “Accounting and Disclosure under the Group Tax Sharing System” (Accounting Standards Implementation Guidance No. 42, 12 August 2021; hereinafter, “Implementation Guidance No. 42”).」

「The Company and its 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 income taxes, local corporate taxes and tax effect accounting are conducted in accordance with “Accounting and Disclosure under the Group Tax Sharing System” (Accounting Standards Implementation Guidance No. 42, 12 August 2021; hereinafter, “Implementation Guidance No. 42”).」

「The Company and its 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 income taxes, local corporate taxes and tax effect accounting are conducted in accordance with “Accounting and Disclosure under the Group Tax Sharing System” (Accounting Standards Implementation Guidance No. 42, 12 August 2021; hereinafter, “Implementation Guidance No. 42”).」

「The Company and its domestic consolidated subsidiaries will transition from the consolidated taxation system to the group tax sharing system from the next consolidated fiscal year. In addition, from the beginning of the next consolidated fiscal year, the Company plans to apply “Accounting and Disclosure under the Group Tax Sharing System,” which prescribes the accounting treatment and disclosure requirements for corporate income taxes, local corporate taxes and tax effect accounting when applying the group tax sharing system.」

「For items concerning 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 for which the standalone tax system was reviewed in conjunction with the transition to the group tax sharing system, “Practical Guidance on the Application of Tax Effect Accounting in Transitioning from the Consolidated Taxation System to the Group Tax Sharing System”」

「For the company and its domestic consolidated subsidiaries, 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 matters for which the standalone taxation system was revised in connection with that transition, the company applied the treatment under Paragraph 3 of Practical Response Report No. 39, “Practical Response to the Application of Tax Effect Accounting Related to the Transition from the Consolidated Taxation System to the Group Aggregation System” (31 March 2020). Accordingly, it did not apply Paragraph 44 of the “Guidance on Accounting Standard for Tax Effect Accounting” (ASBJ Guidance No. 28, 16 February 2018), and calculated deferred tax assets and deferred tax liabilities based on the provisions of the tax laws before the amendments.」