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Applying the transitional provisions as prescribed in paragraph 47-2 of “Practical Guidelines of Accounting and Retirement Benefits-Interim Report” (Accounting Committee Repor t No.13 issued by the Japanese Institute of Certified Public Accountants), the Company and certain consolidated subsidiaries in Japan accounted for the elimination of the future and past benefit obligations of the substitutional portion as well as the related government-specified portion of the employees’ pension plan assets at the date of the approval. 

The amount of pension assets which were to be transferred to the Japanese Government was valued at ·310,657 million ($2,930,726 thousand) at March 31, 2004. 

The figures presented above for the year ended March 31, 2003 included the substitutional portion of benefit obligation. 

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Under a new accounting standard in Japan for the year ended March 31, 2001, the Company fully recognized in income the Company’s portion of the unrecognized net obligation at tra nsition. For additional plan assets to cover the unrecognized net obligation at transition, the Company placed its holding of marketable securities in trust which was solely established for the retirement benefit plan. 

The major defined benefit pension plan provided outside Japan is the plan that Fujitsu Services group provides in the UK. This plan is subject to formal actuarial valuation in accordance with the UK accounting standard SSAP24 (Statements of Standard Accounting Practice 24). 

The Accounting Standards Board of the UK has issued a new UK accounting standard, FRS17 (Financial Reporting Standard 17). It is proposed that FRS17 will be fully effective as the replacement of SSAP24 for accounting periods beginning on or after January 1, 2005. In accordance with the transitional arrangements set out in FRS17, certain disclosures are required using different measurement bases laid down in FRS17. 

The projected benefit obligation and the fair value of the plan assets in accordance with FRS17 are summarized as follows: 

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