Application of tax-effect accounting following the transition to the group tax-sharing system

「The Company and certain domestic consolidated subsidiaries have applied the group aggregation system from the current consolidated fiscal year.」

「The company and certain domestic consolidated subsidiaries have transitioned from the consolidated taxation system to the group tax sharing system beginning with the first quarter of the fiscal year under review. Accordingly, the accounting and disclosure for corporate income taxes, local corporate taxes and accounting for income taxes are conducted in accordance with the Practical Response Report No. 42, Accounting and Disclosure under the Group Tax Sharing System.」

「The Company and certain domestic consolidated subsidiaries have applied the treatment under Paragraph 3 of Practical Solution Report No. 39, “Accounting and Disclosure under the Transition from the Consolidated Taxation System to the Group Tax-Sharing System” (31 March 2020), for items relating to the transition to the group tax-sharing system established by the Act Partially Amending the Income Tax Act and Other Acts (Act No. 8 of 2020) and the related review of the single-entity taxation system. Accordingly, they have not applied Paragraph 44 of the Guidance on Accounting Standard for Tax Effect Accounting (ASBJ Guidance No. 28, 16 February 2018), and have measured deferred tax assets and deferred tax liabilities based on the provisions of the tax laws before amendment.」

「The Company and certain domestic consolidated subsidiaries have applied the treatment under Paragraph 3 of Practical Solution Report No. 39, “Accounting and Disclosure under the Transition from the Consolidated Taxation System to the Group Tax-Sharing System” (31 March 2020), for items relating to the transition to the group tax-sharing system established by the Act Partially Amending the Income Tax Act and Other Acts (Act No. 8 of 2020) and the related review of the single-entity taxation system. Accordingly, they have not applied Paragraph 44 of the Guidance on Accounting Standard for Tax Effect Accounting (ASBJ Guidance No. 28, 16 February 2018), and have measured deferred tax assets and deferred tax liabilities based on the provisions of the tax laws before amendment.」

「With respect to the transition by the company and certain domestic consolidated subsidiaries to the group aggregation system established under the Act Partially Amending the Income Tax Act and Other Laws (Act No. 8 of 2020), and items for which the standalone taxation system was revised in connection with that transition, we have applied the treatment in Paragraph 3 of the Practical Response Report on the Application of Tax Effect Accounting for the Transition from the Consolidated Taxation System to the Group Aggregation System (Practical Response Report No. 39, dated 31 March 2020). Accordingly, Paragraph 44 of the Implementation Guidance on Tax Effect Accounting has not been applied, and deferred tax assets and liabilities are measured based on the provisions of the tax laws before amendment.」

「With respect to the transition by the company and certain domestic consolidated subsidiaries to the group aggregation system established under the Act Partially Amending the Income Tax Act and Other Laws (Act No. 8 of 2020), and items for which the standalone taxation system was revised in connection with that transition, we have applied the treatment in Paragraph 3 of the Practical Response Report on the Application of Tax Effect Accounting for the Transition from the Consolidated Taxation System to the Group Aggregation System (Practical Response Report No. 39, dated 31 March 2020). Accordingly, Paragraph 44 of the Implementation Guidance on Tax Effect Accounting has not been applied, and deferred tax assets and liabilities are measured based on the provisions of the tax laws before amendment.」