ANNUAL REPORT

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3.4.4. Non-derivative financial liabilities Fair value, which is determined for disclosure purposes, is calculated based on the present value of future principal and interest cash flows, discounted at the market rate of interest at the reporting date. In respect of the liability component of convertible notes, the market rate of interest is determined by reference to similar liabilities that do not have a conversion option. For finance leases the market rate of interest is determined by reference to similar lease agreements. 3.5. Property, plant and equipment 3.5.1. Owned assets Items of property, plant and equipment are stated at cost less accumulated depreciation (see below) and impairment losses (see below for accounting policy on impairment). Cost of an item of property, plant and equipment comprises its purchase price as well as any directly attributable costs (for example delivery and handling costs, installation and assembly costs) and the initial estimate of the costs of dismantling and removing the item if the Company is obliged to do so. Subsequent costs are only capitalized if it is probable that they will give rise to future economic benefits in excess of the originally assessed standard of performance of the asset or when it replaces a component that is accounted for separately. Costs incurred simply to restore or maintain the level of future economic benefits are expensed as incurred. Where parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items of property, plant and equipment. Borrowing costs related to acquisition, construction or production of qualifying assets are recognized in profit or loss as incurred. 3.5.2. Leased assets Leases in terms of which the Company assumes substantially all the risks and rewards of ownership are classified as finance leases. Finance leases are capitalized at an amount equal to the lower of its fair value and the present value of the minimum lease payments at inception of the lease, less accumulated depreciation and impairment losses. An operating lease is a lease other than a finance lease. Rent expense for operating leases is recognized in the income statement on a straight-line basis over the lease term. 3.5.3. Depreciation Depreciation is charged to the income statement from the date that the asset is available for use, on a straight-line basis over the estimated useful lives of each part of an item of property, plant and equipment. Land is not depreciated. The estimated useful lives are as follows: Buildings Machineries and equipments Fixtures and fittings 3.6. Intangible assets 3 - 60 years 1 - 20 years 1 - 20 years 3.6.1. Goodwill All business combinations are accounted for by applying the purchase method. Goodwill resulting from acquisition of subsidiaries, associates and joint ventures represents the difference between the cost of the acquisition and the acquirer’s interest in the fair value of the acquired identifiable assets, liabilities and contingent liabilities recognized. Goodwill is stated at cost less any accumulated impairment losses. Goodwill is not amortized but is tested at least annually for impairment. In respect of associates, the carrying amount of goodwill is included in the carrying amount of the investment in the associate. Goodwill is expressed in the currency of the subsidiary to which it relates and is translated to Japanese Yen using the year end exchange rate. Negative goodwill arising on an acquisition is recognized directly in the income statement. 3.6.2. Research and development Expenditure on research activities, undertaken with the prospect of gaining new scientific or technical knowledge and understanding, is recognized in the income statement as an expense as incurred. The periodic lease payments should be split into two components: the interest charge for the period and the reduction of the lease liability. The interest charge should be determined so that a constant periodic rate of interest is recognized on the outstanding balance of the liability. The asset under a finance lease should be depreciated over the shorter of the estimated useful life of the asset or the lease term, unless it is reasonable certain that the Company will obtain ownership by the end of the lease term. 44
FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED MARCH 31, 2009 Expenditure on development activities, whereby research findings are applied to a plan or design for the production of new or substantially improved products and processes, is capitalized if the product or process is technically and commercially feasible and the Company has sufficient resources to complete development. The expenditure capitalized includes the cost of materials, direct labor and an appropriate proportion of overheads. Other development expenditure is recognized in the income statement as an expense as incurred. Capitalized development expenditure is stated at cost less accumulated amortization and impairment losses. 3.6.3. Other intangible assets Other intangible assets that are acquired are stated at cost less accumulated amortization (see below) and impairment losses (see below for accounting policy on impairment). Expenditure on internally generated goodwill and brands is recognized in the income statement as an expense as incurred. Subsequent expenditure on capitalized intangible assets is capitalized only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure is expensed as incurred. 3.6.4. Amortization Amortization is charged to the income statement on a straightline basis over the estimated useful lives. The estimated useful lives are as follows: Softwares Trademarks and patents Tradenames Customer relationships Customer contracts Intellectual properties Capitalized development costs Other rights and agreements 1 - 7 years 7 - 20 years indefinite 8 - 25 years 8 - 15 years 3 - 10 years 5 - 9 years 4 - 15 years Trade names are determined to have an indefinite useful life, because the products are expected to last for the duration of the related consolidated businesses and are expected to retain their current trade names. 3.7. Investments 3.7.1. Investments in securities The Company owns various non-controlling or minority interests in public companies. The Company has not identified, and in the future, may decide not to identify, all the private and public companies in which it acquires non-controlling interests due to confidentiality, competitive or strategic concerns. All or some of the unidentified investments may be material to the Company, individually or in aggregate. Investments are classified as held-to-maturity when the Company has a positive intent and ability to hold debt securities to maturity. 3.7.2. Financial instruments Financial instruments held for trading are classified as current assets and are stated at fair value, with any resultant gain or loss recognized in the income statement. Other financial instruments held by the Company are classified as being available for sale and are stated at fair value, with any resultant gain or loss being recognized directly in equity, except for impairment losses and, in the case of monetary items such as debt securities, foreign exchange gains and losses. When these investments are derecognized, the cumulative gain or loss previously recognized directly in equity is recognized in profit or loss. Where these investments are interest-bearing, interest calculated using the effective interest method is recognized in profit or loss. The fair value of financial instruments classified as held for trading and available for sale is their quoted bid price at the balance sheet date. Financial instruments classified as held for trading or availablefor-sale investments are recognized/derecognized on the date the Company commits to purchase/sell the investments. Heldto-maturity securities are recognized / derecognized on the day they are transferred to/by the Company. 3.8. Investment properties Investment properties are properties which are held either to earn rental income or for capital appreciation or for both. All investment properties are stated at cost, less accumulated depreciation and any accumulated impairment losses. Depreciation charge is charged to the income statement on a straight-line basis over the estimated useful lives of each part of the property. The estimated useful lives are those used as required for owner-occupied property carried at cost. 45
Page 1: ANNUAL REPORT Year Ended March 31,
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Page 8 and 9: Support to our portfolio companies
Page 10 and 11: The evolution of the book value of
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Page 22 and 23: Columbia Music Entertainment, Inc.
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FINANCIAL STATEMENTS FOR THE FISCAL
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PART III CORPORATE GOVERNANCE
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CORPORATE GOVERNANCE The Belgian Co
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CORPORATE GOVERNANCE The following
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CORPORATE GOVERNANCE (1997 to 2000)
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CORPORATE GOVERNANCE INVESTMENT AND
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CORPORATE GOVERNANCE Mr. Fischer ha
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CORPORATE GOVERNANCE OTHER TERMS RH
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CORPORATE GOVERNANCE STATUTORY AUDI
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CORPORATE GOVERNANCE 121
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PART IV SHAREHOLDERS’ INFORMATION
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SHAREHOLDERS’ INFORMATION SHARE P
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NOTES 127
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Co-ordination and Production : IPAC
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ANNUAL REPORT

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