This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. The Company assumes no responsibility for this translation or for direct, indirect or any other forms of damages arising from the translation.
To Those Shareholders with Voting Rights:
INFORMATION DISCLOSURE ON THE INTERNET
REGARDING THE NOTICE OF
THE 99th ORDINARY GENERAL MEETING OF SHAREHOLDERS
Notes to the Consolidated Financial Statements
Notes to the Non-consolidated Financial Statements
(April 1, 2021 to March 31, 2022)
The Notes to the Consolidated Financial Statements and Notes to the Non-consolidated Financial Statements are made available to the shareholders on our website (https://www.iskweb.co.jp/ir/stockholders.html) in accordance with laws and ordinances, as well as the provisions of Article 19 of our Articles of Incorporation.
ISHIHARA SANGYO KAISHA, LTD.
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Notes to the Consolidated Financial Statements
- Notes on Going Concern Assumption Not applicable.
- Notes on the Significant Items that Constitute the Basis of Preparation of Consolidated Financial Statements
- Scope of Consolidation
- Number of Consolidated Subsidiaries and Names of Major Consolidated Subsidiaries
The Company has 17 consolidated subsidiaries.
Japan | ISK Bioscience K.K. |
Ishihara Techno Corporation | |
Fuji Titanium Industry Co., Ltd. | |
ISK Engineering Partners Corporation | |
Overseas | ISK AMERICAS INCORPORATED |
ISK BIOSCIENCES EUROPE N.V. | |
ISK TAIWAN CO., LTD. |
2) Name of Major Non-consolidated Subsidiaries
ISK BIOSCIENCES KOREA LTD.
The Company's 16 non-consolidated subsidiaries are all small companies, and have been excluded from the scope of consolidation as they do not have a material impact on the Company's consolidated financial statements individually or in the aggregate.
(2) Application of the Equity Method
1) Number and Names of Affiliates Accounted for Under the Equity Method
3 companies CERTIS EUROPE B.V. HOKUSAN CO., LTD.
SUMMIT AGRO USA, LLC
On March 22, 2022, CERTIS EUROPE B.V. became an equity method affiliate through an exchange of shares with BELCHIM CROP PROTECTION N.V., which was previously an equity method affiliate.
- Names of Major Non-consolidated Subsidiaries and Affiliates Not Accounted for Under the Equity Method
ISK BIOSCIENCES KOREA LTD.
The Company's 16 non-consolidated subsidiaries and two affiliates have been excluded from the scope of application of the equity method, as their impact on the Company's net income and retained earnings for the current fiscal year are immaterial, and are also immaterial in the aggregate.
(3) Fiscal Year of the Consolidated Subsidiaries
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The fiscal closing date for all consolidated subsidiaries in Japan is March 31. The fiscal closing date for all consolidated subsidiaries overseas is December 31. Their financial statements as of that date are used to prepare the consolidated financial statements, and necessary adjustments are made to reflect significant transactions that occurred between that date and the consolidated fiscal closing date.
- Accounting Policies
- Standards and Methods for Valuation of Assets Securities
Held-to-maturity debt securities: | Carried at amortized cost |
Available-for-sale securities |
Securities apart from shares, etc. without market prices:
Carried at fair value (any valuation differences are reported as a separate component of net assets; cost of securities sold is calculated using the moving average method.)
Shares, etc. without market prices:
Carried at cost using the moving average method | |
Derivatives: | Carried at fair value |
Inventories: | Inventories held for regular sales purposes |
Principally stated at cost, determined by the gross average method | |
(carrying amounts on the balance sheet are subject to the book | |
value reduction method based on decreased profit margin). | |
At other overseas consolidated subsidiaries, inventories are mainly | |
stated at lower of cost or net sales value, cost being determined by | |
the gross average method. |
2) Depreciation or Amortization Method for Non-current Assets Property, plant and equipment (except for leased assets):
Primarily the straight-line method
Intangible assets (except for leased assets):
Straight-line method | |
Computer software for internal use is amortized by the straight -line | |
method over their estimated useful lives of 5 years. | |
Leased assets: | Leased assets under finance lease contracts that transfer ownership |
to the lessee are depreciated by using the same method as for self- | |
held non-current assets. | |
Leased assets under finance lease contracts that do not transfer | |
ownership to the lessee are depreciated to a residual value of zero | |
by the straight-line method over the lease term as the useful life. |
- Standards for Recording Allowances and Provisions Allowance for doubtful receivables:
An estimated amount of uncollectible receivables is recorded based on the aggregate historical experience of bad debts for ordinary
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receivables. For specific probable doubtful accounts from customers experiencing financial difficulties and those in bankruptcy, bad debts amounts are estimated individually based on their specific collectibility.
Provision for bonuses:
A provision for bonuses to be paid to employees is recorded for the estimated amount of such payments.
Provision for implementation of environmental and safety arrangements:
A provision for expenditure to implement environmental and safety arrangements is recorded for the estimated amount of such expenditure.
Specifically, the provision pertains to expenses related to the remediation of soil and groundwater contamination and measures for buried waste at the Yokkaichi Plant.
Provision for maintenance: A provision for expenditure for the maintenance of certain equipment is recorded for the estimated amount of such expenditure that is attributable to the current fiscal year.
Provision for loss on withdrawal from business:
A provision for expenditure for the withdrawal from the biopharmaceutical HVJ-E development business in the organic chemicals business (healthcare) is recorded for the estimated amount of such expenditure.
- Standards for Translating the Value of Important Foreign Currency-denominated Assets and Liabilities into Japanese Yen
The amounts of monetary receivables and payables denominated in foreign currencies are translated into yen amounts at the spot rates of exchange in effect at the balance sheet date, and differences resulting from translation are recognized in income or loss. The assets and liabilities of overseas subsidiaries, etc. are translated into yen at the spot rates of exchange in effect at the balance sheet date, revenue and expense accounts are translated at the average rates of exchange in effect during the year, and differences resulting from translation are reported as translation adjustments which is a component of net assets.
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Method of Hedge Accounting
Hedging transactions are mainly accounted for using the deferral method. Forward exchange contracts which meet certain conditions are accounted for at their contracted rates (the "allocation method"), and interest-rate swaps which meet certain conditions are accounted for as if the interest rates which apply to the swaps had originally applied to the underlying debt (the "special method"). - Method of Accounting for Retirement Benefits
- Method of attribution of expected retirement benefits to each period
In order to calculate the amount of retirement benefit obligations, expected future retirement benefits are attributed to each period through the end of the current fiscal year on a straight-line basis.
- Method of recognizing actuarial gains and losses and prior service cost in profit or loss Actuarial gain or loss is amortized from the following fiscal year in which such gain or loss is recognized, by the straight-line method, over the estimated average remaining years of service of the employees at the time of occurrence of such gain or loss.
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Prior service cost is amortized as incurred by the straight-line method over the estimated average remaining years of service of the employees at the time of such occurrence.
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ISHIHARA SANGYO KAISHA Ltd. published this content on 15 June 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 June 2022 01:12:01 UTC.