Tax Effect Accounting in Connection with the Transition from the Consolidated Taxation System to the Group Tax Sharing System

「The company and its consolidated subsidiaries have changed from the previously applied consolidated taxation system to the group aggregation system, effective from the first quarter of the current consolidated fiscal year.」

「For the Company and its consolidated subsidiaries, with respect to the transition to the group 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, the amounts of deferred tax assets and deferred tax liabilities are calculated based on the provisions of the tax laws before amendment, in accordance with the treatment specified in Paragraph 3 of Practical Response Report No. 39, “Treatment of the Application of Tax Effect Accounting in Connection with the Transition from the Consolidated Taxation System to the Group Sharing System” (31 March 2020), without applying the provisions of Paragraph 44 of the “Guidance on the Application of Accounting Standards for Tax Effect Accounting” (Accounting Standards Implementation Guidance No. 28, 16 February 2018).」