## Notes to reconciliations of equity as of 31 March 2013 

The major components of the reconciliations of equity as of 31 March 2013 are as follows: 

## A Property, plant and equipment 

## (Presentation) 

Under Japanese GAAP, “Buildings and structures, net”, “Machinery, equipment and vehicles, net”, “Tools, furniture and fixtures, net”, “Land”, and “Construction in progress” were presented separately, whereas they have been presented together as “Property, plant and equipment” under IFRS. 

Under Japanese GAAP, assets held for sale were included in “Property, plant and equipment, net”, whereas they are pre- sented separately as “Assets held for sale” in accordance with IFRS. 

## (Recognition and measurement) 

The amount of “Property, plant and equipment” has decreased as a result of revisions to the depreciation method and useful lives and using the fair value as deemed cost for certain items of property, plant and equipment upon the adoption of IFRS. 

## B Goodwill 

## (Recognition and measurement) 

Under Japanese GAAP, goodwill was amortised over a speci- fied period, while under IFRS, goodwill is not amortised. As a result, the amount of “Goodwill” has increased. 

## C Other intangible assets 

## (Presentation) 

“Patents” presented separately under Japanese GAAP have been included in “Other intangible assets” under IFRS. 

## (Recognition and measurement) 

Under Japanese GAAP, costs associated with the in-licensing of products and technologies incurred before filing an application for approval from regulatory authorities were recognised as research and development expenses, but under IFRS, those costs that satisfy certain criteria are capitalised as intangible assets and amortised over their estimated useful lives on a straight-line basis. Also, the Group revised the useful lives of certain marketing rights upon adoption of IFRS. As a result of those factors, “Other intangible assets” has increased by ¥141,670 million. 

## D Investments in associates and joint ventures 

## (Presentation) 

Investments in associates and joint ventures included in “Other” comprising investments and other assets under Japanese GAAP have been presented separately as “Investments in associates and joint ventures” under IFRS. 

## E Deferred tax assets 

## (Presentation) 

Deferred tax assets presented separately as current and non-current under Japanese GAAP have been reclassified as non-current assets under IFRS. 

## (Recognition and measurement) 

Under Japanese GAAP, the tax effect associated with the elimination of an unrealised gain or loss was calculated using the effective tax rate of the seller, while under IFRS, it is calculated using the effective tax rate of the purchaser. 

In addition, deferred tax assets are recognised on the temporary differences resulting from the reconciliations to IFRS. 

## F Other financial assets (non-current) 

## (Presentation) 

“Investment securities” presented separately under Japanese GAAP have been included in “Other financial assets” (non-current) under IFRS. 

Security deposits and other investments included in “Other” comprising investments and other assets under Japanese GAAP have been included in “Other financial assets” (non-current) under IFRS. 

## (Recognition and measurement) 

Under Japanese GAAP, unquoted equity shares are stated at cost calculated mainly by using the moving average method. However, under IFRS, unquoted equity shares are measured at fair value. As a result, there has been an increase of ¥9,736 million in “Other financial assets” (non-current). 

## G Other non-current assets 

## (Presentation) 

Security deposits and other investments included in “Other” comprising investments and other assets under Japanese GAAP have been included in “Other financial assets” (non-current) under IFRS. 

Investments in associates and joint ventures included in “Other” comprising investments and other assets under Japanese GAAP have been presented separately as “Investments in associates and joint ventures” under IFRS. 

## H Inventories 

## (Presentation) 

“Merchandise and finished goods”, “Work in progress” and “Raw materials and supplies”, which were presented sepa- rately under Japanese GAAP, are presented together as “Inventories” under IFRS. 

