Application of Tax-Effect Accounting Accompanying the Transition to the Group Aggregation System

「The Company and certain consolidated subsidiaries have transitioned from the consolidated taxation system to the group relief system from the first quarter of the current consolidated fiscal year. Accordingly, the accounting treatment and disclosure for corporate tax, local corporate tax and tax effect accounting are in accordance with the "Treatment of Accounting and Disclosure When Applying the Group Relief System" (Practical Response Report No. 42, 12 August 2021; hereinafter, "Practical Response Report No. 42"). In addition, based on Paragraph 32(1) of Practical Response Report No. 42, the impact of the change in accounting policy accompanying the application of Practical Response Report No. 42 is deemed to be nil.」

「The Company and certain consolidated subsidiaries have transitioned from the consolidated taxation system to the group relief system from the first quarter of the current consolidated fiscal year. Accordingly, the accounting treatment and disclosure for corporate tax, local corporate tax and tax effect accounting are in accordance with the "Treatment of Accounting and Disclosure When Applying the Group Relief System" (Practical Response Report No. 42, 12 August 2021; hereinafter, "Practical Response Report No. 42").」

「The Company and certain consolidated subsidiaries have applied the treatment under Paragraph 3 of the "Treatment for Applying Tax Effect Accounting in Connection with the Transition from the Consolidated Taxation System to the Group Relief System" (Practical Response Report No. 39, 31 March 2020) and have not applied the provisions of Paragraph 44 of the "Implementation Guidance on Tax Effect Accounting" (ASBJ Guidance No. 28, 16 February 2018) with respect to items for which the transition to the group relief system established under the "Act Partially Amending the Income Tax Act and Other Acts" (Act No. 8 of 2020) and the review of the single-entity taxation system accompanying that transition were implemented. Accordingly, the amounts of deferred tax assets and deferred tax liabilities are based on the provisions of the tax laws before the amendments.」

「The Company and certain consolidated subsidiaries have applied the treatment under Paragraph 3 of the "Treatment for Applying Tax Effect Accounting in Connection with the Transition from the Consolidated Taxation System to the Group Relief System" (Practical Response Report No. 39, 31 March 2020) and have not applied the provisions of Paragraph 44 of the "Implementation Guidance on Tax Effect Accounting" (ASBJ Guidance No. 28, 16 February 2018) with respect to items for which the transition to the group relief system established under the "Act Partially Amending the Income Tax Act and Other Acts" (Act No. 8 of 2020) and the review of the single-entity taxation system accompanying that transition were implemented. Accordingly, the amounts of deferred tax assets and deferred tax liabilities are based on the provisions of the tax laws before the amendments.」

「The Company and certain consolidated subsidiaries have applied the treatment under Paragraph 3 of the "Treatment for Applying Tax Effect Accounting in Connection with the Transition from the Consolidated Taxation System to the Group Relief System" (Practical Response Report No. 39, 31 March 2020) and have not applied the provisions of Paragraph 44 of the "Implementation Guidance on Tax Effect Accounting" (ASBJ Guidance No. 28, 16 February 2018) with respect to items for which the transition to the group relief system established under the "Act Partially Amending the Income Tax Act and Other Acts" (Act No. 8 of 2020) and the review of the single-entity taxation system accompanying that transition were implemented. Accordingly, the amounts of deferred tax assets and deferred tax liabilities are based on the provisions of the tax laws before the amendments.」