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(Recognition and measurement) 

With regard to the cost formula of inventories, the Company and its domestic subsidiaries were mainly using the average method. However, the Group applied the first-in, first-out (FIFO) method under IFRS. As a result, the amount of “Inventories” has decreased. 

## I Trade and other receivables 

(Presentation) 

Accounts receivable-other included in “Other” as current assets under Japanese GAAP have been included in “Trade and other receivables” under IFRS. 

“Allowance for doubtful accounts” presented separately in current assets under Japanese GAAP have been included in “Trade and other receivables” under IFRS. 

(Recognition and measurement) 

Certain provisions for sales discounts or returns have been deducted from “Notes and accounts receivable-trade” under Japanese GAAP. However, they have been included in “Provisions” (current) under IFRS. As a result, the amount of “Trade and other receivables” has increased. 

## J Other financial assets (current) 

(Presentation) 

Time deposits with maturities over three months included in “Cash and deposits” under Japanese GAAP have been included in “Other financial assets” (current) under IFRS. 

Securities with maturities less than three months were included in “Securities” as current assets under Japanese GAAP. However, securities other than cash equivalents are included in “Other financial assets” (current) under IFRS. 

Advances paid and deposits paid included in “Other” as current assets under Japanese GAAP have been included in “Other financial assets” (current) under IFRS. 

## K Other current assets 

(Presentation) 

Accounts receivable-other included in “Other” as current assets under Japanese GAAP have been included in “Trade and other receivables” under IFRS. 

Income tax receivable included in “Other” as current assets under Japanese GAAP has been presented separately as “Income tax receivable” under IFRS. 

Advances paid and deposits paid included in “Other” as current assets under Japanese GAAP have been included in “Other financial assets” (current) under IFRS. 

## L Cash and cash equivalents 

(Presentation) 

Time deposits with maturities over three months included in “Cash and deposits” under Japanese GAAP have been included in “Other financial assets” (current) under IFRS. 

Securities with maturities less than three months were included in “Securities” as current assets under Japanese GAAP. However, securities satisfying the classification require- ments for recognition as cash equivalents are included in “Cash and cash equivalents” under IFRS. 

## M Assets held for sale 

(Presentation) 

Assets held for sale included in “Property, plant and equipment, net” under Japanese GAAP were reclassified and presented separately as “Assets held for sale” under IFRS. 

## N Retained earnings 

(Recognition and measurement) 

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## O Other components of equity 

(Presentation) 

“Subscription rights to shares” presented separately under Japanese GAAP have been included in “Other components of equity” under IFRS. 

(Recognition and measurement) 

The Group applied the exemption under IFRS 1 and transferred all cumulative exchange differences on translating foreign operations to retained earnings on the date of transition to IFRS (1 April 2012). As a result, “Other components of equity” has increased by ¥147,167 million. 

