## F Share of profits of associates and joint ventures 

(Presentation) 

“Share of profits of associates and joint ventures” included in non-operating income under Japanese GAAP has been presented separately under IFRS. 

Profits or losses associated with certain partnerships included in “Sales” under Japanese GAAP have been included in “Share of profits of associates and joint ventures” under IFRS. 

## G Other income 

(Presentation) 

“Exchange gain” included in non-operating income under Japanese GAAP has been included in “Other income” under IFRS. 

“Gain on sales of property, plant and equipment” included in special gains under Japanese GAAP has been included in “Other income” under IFRS. 

In addition, certain items of income included in “Other” as non-operating income or special gains under Japanese GAAP have been included in “Other income” under IFRS. 

## H Other expense 

(Presentation) 

“Loss on sales and disposal of property, plant and equipment” and “Impairment losses of non-current assets” presented as special losses under Japanese GAAP have been included in “Other expense” under IFRS. 

Certain losses arising from settlement of litigations included in “Selling, general and administrative expenses” under Japanese GAAP have been included in “Other expense” under IFRS. 

In addition, certain items of loss included in “Other” as non- operating expenses or special losses under Japanese GAAP have been included in “Other expense” under IFRS. (Recognition and measurement) 

Under IFRS, research and development expenses arising mainly from in-licensing agreements satisfying certain classifi- cation requirements are recognised as intangible assets, but research and development expenses are charged directly to profit or loss when incurred under Japanese GAAP. For certain intangible assets additionally recognised upon adoption of IFRS, the carrying amount is reduced to the recoverable amount when the discontinuation of the development is decided during the period, and the difference is recognised as impairment loss in the same period. As a result, the amount of “Other expense” has increased by ¥9,832 million. 

## I Finance income 

(Presentation) 

“Interest income” and “Dividend income” included in non- operating income under Japanese GAAP have been included in “Finance income” under IFRS. 

“Gain on sale of investment securities” included in special gains under Japanese GAAP has been included in “Finance income” under IFRS. 

In addition, certain items of income included in “Other” as non-operating income or special gains under Japanese GAAP have been included in “Finance income” under IFRS. 

## J Finance expense 

(Presentation) 

“Interest expense” included in non-operating expenses under Japanese GAAP has been included in “Finance expense” under IFRS. 

Also, certain items of expenses included in “Other” as non- operating expenses or special losses under Japanese GAAP have been included in “Finance expense” under IFRS. 

## K Income tax expense 

(Recognition and measurement) 

Under Japanese GAAP, the tax effect associated with the elimination of unrealised gain or loss is calculated using the effective tax rate of the seller, while under IFRS, it is calculated using the effective tax rate of the purchaser. As a result, the amount of “Income tax expense” has decreased. 

In addition, “Income tax expense” has decreased due to the temporary differences resulting from the reconciliation to IFRS. 

## L Remeasurements of defined benefit plans 

(Recognition and measurement) 

Under Japanese GAAP, actuarial gains and losses associated with retirement benefits are amortised mainly on a straight-line basis from the following year in which they were incurred over the average remaining service years of employees. However, under IFRS, the Group fully recognises the actuarial gains and losses when they are incurred in other comprehensive income as “Remeasurements of defined benefit plans”. As a result, the amount of “Remeasurements of defined benefit plans” has deceased. 

## M Foreign currency translation adjustments 

(Recognition and measurement) 

“Foreign currency translation adjustments” have increased due to the effects of foreign currency translations of reconciliations incurred after the date of transition to IFRS. 

## N Fair value movements on available-for-sale financial assets 

(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, the amount of “Fair value movements on available-for-sale financial assets” has decreased. 

