Application of Tax-Effect Accounting in Connection with the Transition to the Group Tax Sharing System

「Beginning with the first quarter of the current fiscal year, the company and its domestic consolidated subsidiaries transitioned from the consolidated taxation system to the group tax sharing system. Accordingly, the accounting treatment and disclosures for corporate and local corporate taxes and tax-effect accounting comply with the “Accounting and Disclosure under the Group Tax Sharing System”……」

「With respect to the transition by the company and its domestic consolidated subsidiaries 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-entity tax payment system was revised in connection with that transition,」

「For the transition by the Company and certain domestic consolidated subsidiaries to the group relief system established under the Act Partially Amending the Income Tax Act and Other Acts (Act No. 8 of 2020), and for items affected by revisions to the standalone taxation system accompanying that transition, the Group applies the treatment under paragraph 3 of Practical Solution No. 39, Accounting for Tax Effect Accounting on the Transition from the Consolidated Taxation System to the Group Relief System. Accordingly, it does not apply paragraph 44 of the Guidance on Accounting Standard for Tax Effect Accounting and measures deferred tax assets and liabilities based on the provisions of the tax laws before amendment.」