content_image/222634.jpg content_image/222637.jpg
## (Changes in accounting policy) 

Effective April 1, 2011, the Company adopted “Accounting Standard for Earnings Per Share” (ASBJ Statement No. 2 revised on June 30, 2010), and “Guidance on Accounting Standard for Earnings Per Share” (ASBJ Guidance No. 4, revised on June 30, 2010). 

The method of calculating diluted earnings per share has been changed to the method which adds the fair value of potential services to be offered by the employees to the amount of payment from exer- cising the stock options whose rights are secured after the employ- ment for a certain period. As the earnings of fiscal year 2011 and 2012 result in loss, the Company doesn’t disclose fully diluted earn- ings per share. 

## Unapplied accounting policies 

GLYPH<129>Revised Accounting Standard for Consolidated Financial Statements (ASBJ Statement No. 22) 

GLYPH<129>Revised Guidance on Disclosures about Certain Special Purpose Entities (ASBJ Guidance No. 15) 

GLYPH<129>Revised Guidance on Determining a Subsidiary and an Affiliate (ASBJ Guidance No. 22) 

GLYPH<129>Revised Control Criteria and Influence Criteria for Investment Associations (ASBJ PITF No. 20) 

## (Additional Information) 

The Company adopted “Accounting Standard for Accounting Changes and Error Corrections” (Accounting Standards Board of Japan (“ASBJ”) Statement No. 24, issued on December 4, 2009) and “Guidance on Accounting Standard for Accounting Changes and Error Corrections” (ASBJ Guidance No. 24, issued on December 4, 2009) for accounting changes and corrections of prior period errors which are made from the fiscal year beginning on April 1, 2011. 

These amendments modify consolidation criteria for special purpose entities such that an investor in a special purpose entity is not exempted from consolidation unless the investor is the transferor of assets to the special purpose entity. These amendments will be effective for annual periods beginning on or after April 1, 2013. The Company is currently in the process of determining the effects of these new standards on the consolidated financial statements. 

## 3. Margin transactions 

Margin transactions at March 31, 2012 and 2011 consisted of the following: 

<img src='content_image/222634.jpg'>

Customers’ margin loans are stated at amounts equal to the purchase amounts of the relevant securities, which are collateralized by customers’ securities and customers’ deposits. Proceeds of securities sold for customers’ accounts are stated at the sales amounts. 

## 4. Collateralized short-term financing agreements 

Collateralized short-term financing agreements at March 31, 2012 and 2011 consisted of the following: 

<img src='content_image/222637.jpg'>

