Application of Tax Effect Accounting Following the Transition to the Group Tax-Sharing System

「We and certain consolidated subsidiaries have transitioned from the consolidated taxation system to the group relief system from the beginning of the first quarter of the current consolidated fiscal year.」

「The Company and certain consolidated subsidiaries have applied the provisions concerning the transition to the group aggregation 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 taxation system was revised in conjunction with that transition,」

「The Company and certain consolidated subsidiaries have applied the provisions concerning the transition to the group aggregation 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 taxation system was revised in conjunction with that transition,」

「The Company and certain consolidated subsidiaries have applied the provisions of Paragraph 3 of the Practical Response Report No. 39, "Accounting Treatment for the Application of Tax Effect Accounting Related to the Transition from the Consolidated Taxation System to the Group Aggregation System" (31 March 2020), with respect to the transition to the group aggregation 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 taxation system was revised in conjunction with that transition. Accordingly, the provisions of Paragraph 44 of the Guidance on Accounting Standard for Tax Effect Accounting (ASBJ Guidance No. 28, 16 February 2018) have not been applied, and deferred tax assets and deferred tax liabilities are calculated based on the provisions of the tax laws before the amendments.」

「With respect to the transition by the company and its 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 standalone tax filing system was revised in connection with that transition, the provisions of Paragraph 44 of the Guidance on the Application of Accounting Standards for Tax Effect Accounting (ASBJ Guidance No. 28, 16 February 2018) were not applied pursuant to Paragraph 3 of the Practical Solution on the Application of Tax Effect Accounting in Transition from the Consolidated Taxation System to the Group Tax Sharing System (Practical Issues Task Force Report No. 39, 31 March 2020). The amounts of deferred tax assets and deferred tax liabilities were calculated based on the provisions of tax laws before the amendments.」

「With respect to the transition by the company and its 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 standalone tax filing system was revised in connection with that transition, the provisions of Paragraph 44 of the Guidance on the Application of Accounting Standards for Tax Effect Accounting (ASBJ Guidance No. 28, 16 February 2018) were not applied pursuant to Paragraph 3 of the Practical Solution on the Application of Tax Effect Accounting in Transition from the Consolidated Taxation System to the Group Tax Sharing System (Practical Issues Task Force Report No. 39, 31 March 2020). The amounts of deferred tax assets and deferred tax liabilities were calculated based on the provisions of tax laws before the amendments.」