Adoption of New Accounting Standards for Revenue Recognition and Fair Value Measurement

「Because the revenue recognition standard and other relevant standards were applied, the notes receivable and accounts receivable previously presented under current assets on the balance sheet for the previous fiscal year have been presented from the first quarter of the current fiscal year as notes and accounts receivable and contract assets. In accordance with the transitional treatment prescribed in paragraph 89-2 of the revenue recognition standard, the previous fiscal year has not been reclassified using the new presentation method.」

「The company has applied Accounting Standard No. 29, Revenue Recognition (31 March 2020), and Guidance on Accounting Standard for Revenue Recognition No. 30 (26 March 2021), from 1 April 2021. Revenue is measured based on the consideration specified in contracts with customers, taking into account variable consideration and consideration payable to customers, and is recognised when control of the products transfers to the customer. The company applied Accounting Standard for Fair Value Measurement (Accounting Standard No. 30, 4 July 2019; hereinafter, the Fair Value Measurement Standard) and other relevant standards from the beginning of the first quarter of the current fiscal year. In accordance with the transitional treatment prescribed in paragraph 19 of the Fair Value Measurement Standard and paragraph 44-2 of Accounting Standard for Financial Instruments (Accounting Standard No. 10, 4 July 2019), the new accounting policies prescribed by the Fair Value Measurement Standard and other relevant standards will be applied prospectively.」