Annual Report 1998 - Omron

2. Translation
into United
States Dollars
The consolidated financial statements are stated in Japanese yen, the currency of the country in which
the Company is incorporated and operates. The translations of Japanese yen amounts into U.S. dollar
amounts are included solely for convenience and have been made at the rate of ¥132 to $1, the
approximate free rate of exchange at March 31, 1998. Such translations should not be construed as
representations that the Japanese yen amounts could be converted into U.S. dollars at the above or any
other rate.
3. Inventories Inventories at March 31, 1998 and 1997 consisted of:
Millions of yen
Thousands of
U.S. dollars
1998 1997 1998
Finished products ............................................................................................. ¥56,665 ¥46,564 $429,280
Work-in-process ................................................................................................ 17,707 19,731 134,144
Materials and supplies....................................................................................... 20,609 19,671 156,129
Total .......................................................................................................... ¥94,981 ¥85,966 $719,553
4. Short-Term
Investments
and Investment
Securities
The Companies have chosen not to adopt the recognition and measurement principles of SFAS No.
115 and have instead continued to account for investments in debt and equity securities under previously
accepted accounting principles. The Companies were of the opinion that the adoption of SFAS
No. 115 would materially reduce the comparability of the financial statements with those of other
Japanese companies that follow the Japanese accounting practice of reporting marketable debt and
equity securities under the lower of cost or market method. Marketable securities included in shortterm
investments and investment securities at March 31, 1998 and 1997 would be classified as
available-for-sale securities under SFAS No. 115. The recognition and measurement provisions of SFAS
No. 115 require that the investments in debt and equity securities which are classified as available for
sale be reported at fair value with unrealized gains and losses, net of related taxes, reported in a separate
component of shareholders’ equity.
If the Companies had followed SFAS No. 115, consolidated net income would have increased ¥404
million ($3,061 thousand) for the year ended March 31, 1998. There was no effect on income for the
years ended March 31, 1997 and 1996, of not adopting SFAS No. 115. The effects on the consolidated
balance sheets as of March 31, 1998 and 1997 of not adopting SFAS No. 115 were as follows:
Thousands of
Millions of yen
U.S. dollars
1998 1997 1998
Shareholders’ equity as reported .................................................................. ¥336,064 ¥323,019 $2,545,939
Net increase in the carrying amount of short-term investments................... 1,375 3,065 10,417
Net increase in the carrying amount of investment securities ..................... 12,091 17,512 91,598
Net increase in deferred tax liabilities as a result
of the above net increases in short-term investments
and investment securities............................................................................ (6,868) (10,494) (52,030)
Net increase in net income due to a change in enacted tax rates ................ 404 — 3,061
Shareholders’ equity based on SFAS No. 115........................................ ¥343,066 ¥333,102 $2,598,985
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