Article 1(1)From among the financial and accounting documents (hereinafter referred to as "financial documents") that are to be submitted pursuant to the provisions of Article 5, Article 7, paragraph (1), Article 9, paragraph (1), Article 10, paragraph (1) or Article 24, paragraph (1) or (3) of the Financial Instruments and Exchange Act (Act No. 25 of 1948; hereinafter referred to as the "Act") (including cases where these provisions are applied mutatis mutandis pursuant to paragraph (5) of that Article) or paragraph (6) of that Article (including cases where any of these provisions are applied mutatis mutandis pursuant to Article 24-2, paragraph (1) of the Act and cases where these provisions are applied mutatis mutandis, pursuant to Article 27 of the Act, to a corporation which has been designated by the Commissioner of the Financial Services Agency as one to whom it is appropriate to apply this Regulation (that corporation is hereinafter referred to as a "designated corporation")), the terminology, forms, and preparation methods of financial statements (meaning balance sheets, profit and loss statements, statements of changes in net assets and cash flow statements (including documents that are equivalent to these financial documents, and that are prepared by a designated corporation or prepared for specified trust property prescribed in Article 2-2; the same applies hereinafter) and annexed detailed statement or, if financial documents are prepared pursuant to Designated International Accounting Standards (meaning Designated International Accounting Standards prescribed in Article 93 of the Regulation on Terminology, Forms and Preparation Methods of Consolidated Financial Statements (Ministry of Finance Order No. 28 of 1976; hereinafter referred to as "regulation on consolidated financial statements"); the same applies hereinafter) pursuant to the provisions of Article 129, paragraph (2), equivalents to balance sheets, profit and loss statements, statements of changes in net assets and cash flow statements, of which preparation is required pursuant to the Designated International Accounting Standards; the same applies hereinafter) are governed by the provisions of this Chapter to Chapter VIII, excluding Article 1-3, and any matters that are not provided for under this Regulation are in accordance with business accounting standards generally accepted as fair and appropriate.

(2)The business accounting standards published by the business accounting council prescribed in Article 24, paragraph (1) of the Cabinet Order for Organization of the Financial Services Agency (Cabinet Order No. 392 of 1998) are to fall under the business accounting standards generally accepted as fair and appropriate, as prescribed in the preceding paragraph.

(3)From among the business accounting standards prepared and published by organizations that research, study, and prepare business accounting standards on a regular basis, and that satisfy all of the following requirements, those which are specified by the Commissioner of the Financial Services Agency as such that are found to have been prepared and published under fair and proper procedures and are expected to be generally accepted as fair and appropriate business accounting standards are to fall under the business accounting standards generally accepted as fair and appropriate prescribed in paragraph (1):

(4)If the Commissioner of the Financial Services Agency has specially published any standards on the preparation methods for specific matters concerning financial statements that are to be submitted pursuant to the provisions of the Act, the standards is regarded as being equivalent to the provisions of this Regulation and prevails over the business accounting standards generally accepted as fair and appropriate prescribed in paragraph (1).

Article 1-2The terminology, forms, and preparation methods of financial statements that a company which prepares consolidated financial statements and which is a company with financial auditors as prescribed in Article 2, item (xi) of the Companies Act (Act No. 86 of 2005) (excluding a stock company or designated corporation engaged in a listed business as prescribed in Article 2; referred to as a "special company submitting financial statements" in Chapter VII), submits may be in accordance with the provisions of that Chapter.

Article 1-2-2The terminology, forms, and preparation methods of Financial Statements that an issuer (meaning the issuer prescribed in Article 2, paragraph (5) of the Act) of the securities set forth in paragraph (1), item (v) or (ix) of that Article, which is a stock company satisfying all of the following requirements (hereinafter referred to as a "specified company complying with designated international accounting standards"), submits may, unless it prepares consolidated financial statements, be in accordance with the provisions of Chapter VIII:

Article 1-3The terminology, forms, and preparation methods of financial documents (excluding interim financial documents and quarterly financial documents; the same applies in Chapter IX) that are to be submitted by a foreign company (meaning an issuer of beneficiary securities in foreign investment trusts set forth in Article 2, paragraph (1), item (x) of the Act, foreign investment securities set forth in item (xi) of that paragraph, securities set forth in item (xvii) of that paragraph which have the nature of the securities set forth in items (iii) to (ix) or items (xii) to (xvi) of that paragraph, securities set forth in item (xviii) of that paragraph, securities set forth in item (xix) or item (xx) of that paragraph (limited to those whose issuer is a foreign person), securities set forth in item (xxi) of that paragraph or rights set forth in paragraph (2), item (ii), (iv) or (vi) of that Article; the same applies in that Chapter) are to be governed by the provisions of that Chapter.

Article 2If, with regard to the terminology, forms, and preparation methods of financial statements which a stock company or designated corporation that is engaged in a business set forth in the appended list (hereinafter referred to as a "listed business") submits to its governing authority, there are any special provisions of law or regulations or if there are any rules on Financial Statements (hereinafter referred to as "rules") that its governing authority has established based on this Regulation, the terminology, forms, and preparation methods of the financial statements that the stock company or designated corporation engaged in the relevant business submits pursuant to the provisions of the Act are to be governed by the provisions of the law, regulations or rules, notwithstanding the provisions of Articles 11 to 68-2, Articles 68-4 to 77, Articles 79 to 109 and Articles 110 to 121; provided, however, that this does not apply with regard to matters that the Commissioner of the Financial Services finds to be necessary and on which the Commissioner has given instructions, nor does this apply with regard to matters that are not provided for in the law, regulations or rules.

Article 2-2The terminology, forms, and preparation methods of the financial statements that must be prepared with regard to trust property that is subject to the application of the Regulation on Accounting for Special Purpose Trust Property (Prime Minister's Office Order No. 132 of 2000; hereinafter referred to as the "special purpose trust property accounting regulation") or the Regulation on Accounting for Investment Trust Property (Prime Minister's Office Order No. 133 of 2000; hereinafter referred to as the "investment trust property accounting regulation") (that trust property is hereinafter referred to as the "specified trust property") are to be governed by the special purpose trust property accounting regulation or the investment trust property accounting regulation, notwithstanding the provisions of Articles 11 to 68-2, Articles 68-4 to 77, Articles 79 to 109 and Articles 110 to 121; provided, however, that this does not apply with regard to matters that the Commissioner of the Financial Services Agency finds to be necessary and on which the Commissioner has given instructions, nor does this apply to matters that are not provided for in the special purpose trust property accounting regulation or the investment trust property accounting regulation.

Article 3Financial statements submitted, pursuant to the provisions of the Act, by a stock company concurrently engaged in two or more businesses that are subject to the application of the provisions of Article 2 are to be governed by the laws, regulations or rules that apply to whichever of these businesses constitutes the main portion of the operations of that company; provided, however, that matters concerning any business other than its main business or matters for which that company has obtained the approval of the Commissioner of the Financial Services Agency on the finding that they should not be governed by the provisions of the relevant laws, regulations or rules may be governed by laws, regulations or rules that are relevant to any of the businesses other than the main business.

Article 4If a stock company is concurrently engaged in a business that is subject to the application of the provisions of Article 2 and any other business, and the relevant other business constitutes the main portion of the operations of that company, the Financial Statements that the company submits pursuant to the provisions of this Act may be exempted from having the provisions of Article 2 applied thereto; provided, however, that matters related to the business that is subject to the application of the provisions of Article 2 may be governed by the relevant laws, regulations or rules.

Article 4-2If a stock company or designated corporation engaged in specified financial services (meaning specified financial services as prescribed in Article 2, paragraph (2) of the Cabinet Office Order on Account Management of specified finance companies (Order of the Prime Minister's Office and the Ministry of Finance No. 32 of 1999); the same applies hereinafter) set forth in Appended List No. 19 is concurrently engaged in any business other than specified financial services, matters concerning the specified financial services are to be governed by that Regulation, notwithstanding the provisions of the preceding two Articles.

Article 5(1)The terminology, forms, and preparation methods of financial statements to be submitted pursuant to the provisions of the Act must comply with the following standards:

(2)The same presentation method must be adopted for matters that must be entered in Financial Statements and that have the same content, throughout each period for preparing financial statements, unless a change is made based on justifiable grounds.

Article 6Financial statements for the current business year must be prepared by including, as part of the financial statements, comparative information (meaning the matters pertaining to the business year immediately preceding the current business year (hereinafter referred to as the "previous business year") corresponding to the matters entered in the financial statements (excluding the supplementary schedules) for the current business year).

Article 7Deleted.

Article 8(1)As used in this Regulation, the term "within one year" means a date that falls within one year from the day following the date of the balance sheet.

(2)As used in this Regulation, the term "ordinary transactions" means transactions that occur routinely or that occur repeatedly during a short period, as a part of the operating activities to achieve the business purpose of the company submitting financial statements.

(3)As used in this Regulation, the term "parent company" means a Company, etc. that has control over the body that decides the financial and operational or business policies of another company, etc. (the body means the ensemble of shareholders at a shareholders' meeting or any other bodies equivalent thereto; hereinafter referred to as a "decision-making body"), and the term "subsidiary company" means the relevant other company, etc. Where a parent company and a subsidiary company jointly, or a subsidiary company alone has control over the decision-making body of another company, etc., the relevant other company, etc. is also deemed as a subsidiary company of the parent company.

(4)A company, etc. that has control over a decision-making body of another company, etc. under the preceding paragraph means any of the companies, etc. set forth in the following items; provided, however, that this does not apply to a company, etc. that is found to clearly not have control over the decision-making body of another company, etc. from the viewpoint of their financial, operational or business relationships:

(5)The term "affiliated company" as used in this Regulation means, when a company, etc. or its subsidiary company is able to exert a material impact on the financial and operational or business policy decisions of another Company, etc. that is not a subsidiary company, due to their ties in terms of investment, personnel, funds, technology, transactions, etc., the relevant other Company, etc. that is not a subsidiary company.

(6)The cases referred to in the preceding paragraph where a material impact can be exerted on the financial and operational or business policy decisions of another company, etc. that is not a subsidiary company are the cases set forth in the following items; provided, however, that this does not apply when it is found that the company, etc. or its subsidiary company of the company, etc. is clearly unable to exert a material impact on the financial and operational or business policy decisions of another company, etc. that is not a subsidiary company, in light of their financial, operational or business relationships:

(7)When a special purpose company (meaning a specified purpose company as prescribed in Article 2, paragraph (3) of the Act on the securitization of assets (Act No. 105 of 1998; hereinafter referred to as the "asset securitization act" in this paragraph and Article 122, item (viii)) (referred to as a "specified purpose company" in Article 122, item (viii)) and business entities engaged in business similar thereto which are restricted from changing the content of business; hereinafter the same applies in this paragraph) has been incorporated for the purpose of allowing the holders of securities issued thereby (including the creditors of specific borrowings as prescribed in Article 2, paragraph (12) of the asset securitization act) to enjoy the revenues arising from assets that have been transferred to the special purpose company at a fair value, and when the business of the special purpose company is being appropriately implemented in accordance with the purpose thereof, the special purpose company is deemed to be independent from any company, etc. that has transferred assets to the special purpose company (hereinafter collectively referred to as a "transferor company, etc.") and, notwithstanding the provisions of paragraphs (3) and (4), the special purpose company is presumed not to fall under a subsidiary company of the transferor company, etc.

(8)As used in this Regulation, the term "associated company" means the parent company, subsidiary company, or affiliated company of the company submitting financial statements and, when the company submitting financial statements is the affiliated company of another company, etc., the relevant other company, etc. (referred to as "other associated company" in paragraph (17), item (iv)).

(9)As used in this Regulation, the term "futures transactions" means the following transactions:

(10)As used in this Regulation, the term "options transactions" means the following transactions:

(11)As used in this Regulation, the term "forward transactions" means the following transactions:

(12)As used in this Regulation, the term "swap transactions" means the following transactions:

(13)As used in this Regulation, the term "any other derivatives transactions" means the following transactions:

(14)As used in this Regulation, the term "derivatives transactions" means transactions as prescribed in paragraph (9) through the preceding paragraph.

(15)As used in this Regulation, the term "consolidated financial statements" means the consolidated financial statements prescribed in Article 1 of the regulation on consolidated financial statements.

(16)As used in this Regulation, the term "equity method" means the method prescribed in Article 2, item (viii) of the regulation on consolidated financial statements.

(17)As used in this Regulation, the term "related party" means any of the following persons:

(18)As used in this Regulation, the term "cash flow" means any increase or decrease in the funds prescribed in the following paragraph.

(19)As used in this Regulation, the term "funds" means the combined total of cash (including any current deposits, ordinary deposits and other deposits which the depositor is able to withdraw without waiting for a certain period to elapse; the same applies in Chapter V) and cash equivalents (meaning short-term investments which can be easily converted into cash and which involve a low risk of fluctuations in value; the same applies in Chapter V).

(20)As used in this Regulation, the term "trading securities" means securities held for the purpose of making a profit from fluctuations in market values.

(21)As used in this Regulation, the term "bonds held to maturity" means corporate bond certificates or other bond certificates that are retained with the intention of holding them until maturity (limited to those that were acquired with the intention of holding them until maturity).

(22)As used in this Regulation, the term "other securities" means securities other than trading securities, bonds held to maturity, shares in a subsidiary company, or shares in an affiliated company.

(23)As used in this Regulation, the term "treasury shares" means the shares of a company submitting financial statements that the company submitting financial statements holds itself.

(24)As used in this Regulation, the term "shares in the company" means shares in the company submitting financial statements.

(25)As used in this Regulation, the term "share options in the company" means call options (meaning the rights to acquire the shares in the company that constitute the underlying assets thereof, by paying a certain amount of money) whose underlying assets are shares in the company.

(26)As used in this Regulation, "stock options" means share options in the company which a company submitting financial statements grants to its workers, etc. (meaning employees hired by the company submitting financial statements and officers of the company submitting financial statements; hereinafter the same applies in this paragraph) as remuneration (meaning what the company submitting financial statements pays or delivers to its workers, etc. as consideration for their work, administration business, etc.).

(27)As used in this Regulation, the term "business combination" means integration of a certain enterprise or a business segment of a certain enterprise and another enterprise or a business segment of another enterprise into a single reporting unit.

(28)As used in this Regulation, the term "acquiring enterprise" means an enterprise which acquires (meaning gains control; the same applies in the following paragraph, paragraph (36), Article 8-17, paragraph (1), Article 8-19, paragraph (1) and Article 56) another enterprise or a business segment of another enterprise.

(29)As used in this Regulation, the term "acquired enterprise" means an enterprise which is to be acquired by an acquiring enterprise.

(30)As used in this Regulation, the term "surviving company" means a company surviving absorption-type merger prescribed in Article 749, paragraph (1) of the Companies Act and a business entity equivalent thereto.

(31)As used in this Regulation, the term "combiner" means an enterprise that receives another enterprise or a business segment of another enterprise and pays a consideration therefor.

(32)As used in this Regulation, the term "combinee" means an enterprise that is received into the combiner or an enterprise whose business segment is receive into the combiner.

(33)As used in this Regulation, the term "combined enterprise" means an enterprise which is a single reporting unit integrated by business combination.

(34)As used in this Regulation, the term "constituent enterprises" means the enterprises involved in a business combination.

(35)As used in this Regulation, the term "purchase method" means a method wherein the acquisition costs for the assets and liabilities that the combiner takes on from a combinee is the market values of the cash delivered as consideration and its shares, etc.

(36)As used in this Regulation, the term "reverse acquisition" means, from among business combinations, those set forth below:

(37)As used in this Regulation, the term "common control transaction, etc." means a business combination wherein all of the constituent enterprises or businesses are ultimately controlled by the same shareholders before and after the business combination, and when the control is not temporary, as well as transactions wherein the enterprise which controls the business group (meaning a company submitting consolidated financial statements and its subsidiary companies; hereinafter the same applies in this paragraph) exchanges its shares in a subsidiary company with any of the subsidiary company's shareholders who do not belong to the business group.

(38)As used in this Regulation, the term "business divestiture" means the transfer of a certain enterprise's business segment to another enterprise (including a newly incorporated enterprise).

(39)As used in this Regulation, the term "divesting enterprise" means the enterprise that transfers its business segment in a business divestiture.

(40)As used in this Regulation, the term "divested enterprise" means the enterprise (including a newly incorporated enterprise) that receives a business segment from a divesting enterprise in a business divestiture.

(41)As used in this Regulation, "financial instruments" means financial assets (meaning monetary claims, securities, and claims arising from derivatives transactions (including equivalents thereof); the same applies in Article 8-6-2, paragraph (3)) and financial liabilities (meaning monetary debts and debts arising from derivatives transactions (including equivalents thereof); the same applies in that paragraph).

(42)As used in this Regulation, the term "asset retirement obligations" means legal obligations or the equivalent thereof with regard to the retirement of tangible fixed assets, which arise through the acquisition, construction, development, or ordinary use of tangible fixed assets.

(43)As used in this Regulation, the term "construction contract" means a contract wherein the basic specifications and work details for civil engineering, building, shipbuilding, the manufacture of machinery and equipment, or any other work, are based on instructions from the person ordering the work.

(44)As used in this Regulation, the term "accounting policies" means the accounting principles and procedures adopted for the preparation of Financial Statements.

(45)As used in this Regulation, the term "presentation method" means the presentation method adopted for the preparation of financial statements.

(46)As used in this Regulation, the term "accounting estimates" means amounts of assets, liabilities, revenues, expenses, etc. that are reasonably calculated based on the information available at the time of the preparation of financial statements when those amounts are uncertain.

(47)As used in this Regulation, the term a "change in accounting policies" means a change of an accounting policy that is generally accepted as fair and appropriate into another accounting policy that is generally accepted as fair and appropriate.

(48)As used in this Regulation, the term "change in presentation method" means a change of a presentation method that is generally accepted as fair and appropriate to another Method of Presentation that is generally accepted as fair and appropriate.

(49)As used in this Regulation, the term a "change in accounting estimates" means a change in an accounting estimate that had been made for the preparation of financial statements for the previous business year or any prior business year, based on new information that has become available.

(50)As used in this Regulation, the term "error" means an error arising from the failure to use, or the misuse of, information that was available at the time of the preparation of financial statements, regardless of whether or not the act to be the cause thereof was intentional.

(51)As used in this Regulation, the term "retrospective application" means the implementation of accounting processes by assuming that new accounting policies are retroactively applied to financial statements for the previous business year or any prior business year.

(52)As used in this Regulation, the term "reclassification of financial statements" means changing the presentation by assuming that a new presentation method is retroactively applied to the financial statements for the previous business year and earlier.

(53)As used in this Regulation, the term "restatement" means the reflection, in financial statements, of the correction of an error in financial statements for the previous business year or any prior business year.

(54)As used in this Regulation, the term "retirement benefits" means retirement lump-sum payments and retirement pensions paid to workers, etc. (meaning employees hired by the company submitting financial statements and officers of the company submitting financial statements (limited to those that are subject to a retirement benefit plan); the same applies in the following paragraph, paragraph (56), and paragraph (58)) after their retirement.

(55)As used in this Regulation, the term "retirement benefit obligations" means liabilities of which amount is obtained by first calculating the amount that constitutes the portion of retirement benefits (excluding those that have already been paid) projected to be paid to each worker, etc. (including any person who is no longer employed at the relevant company; hereinafter the same applies in this paragraph) that has arisen based on the service of each worker, etc. until the balance sheet date (for a worker who is no longer employed, until the date the worker, etc. ceased to be employed at the relevant company), this amount having been discounted by using the discount rate (meaning a rate specified by the company submitting financial statements based on the yields of the Japanese government bonds, government agency bond certificates, or any other high quality bonds by reflecting the period that runs from the balance sheet date until the day on which retirement benefits are projected to be paid to each worker, etc.; the same applies in the following paragraph, paragraph (57), and Article 8-13, paragraph (1), item (vii)) as of the balance sheet date, and then calculating the total amount for all workers, etc.

(56)As used in this Regulation, the term "service cost" means the cost of which amount is obtained by first calculating the amount that constitutes the portion of the retirement benefits projected to be paid to each worker, etc. that has arisen based on the service of each worker, etc. between the day of commencement of the relevant business year and the balance sheet date, this amount having been discounted by using the discount rate, and then calculating the total amount for all workers, etc.

(57)As used in this Regulation, the term "interest cost" means the cost equivalent to the interest calculated by using the discount rate on the retirement benefit obligations as of the start date of the current business year.

(58)As used in this Regulation, the term "pension assets" means specific assets which are accumulated for allocation to retirement benefits based on a contract, etc. between a company, etc. and a worker, etc. with regard to a specific retirement benefit plan and which satisfy all of the following requirements:

(59)As used in this Regulation, the term "expected return" means revenues that are reasonably expected to arise as a result of investing pension assets.

(60)As used in this Regulation, the term "actuarial gain/loss" means the difference between the expected return on pension assets and the actual investment results, the difference between the estimated value used in the actuarial calculation of retirement benefit obligations and the actual value, and the difference that arises as a result of a change in the estimated value, etc.

(61)As used in this Regulation, the term "past service cost" means an increased or decreased portion of the retirement benefit obligations that arises as a result of adopting a retirement benefit plan or revising the level of retirement benefits.

(62)As used in this Regulation, the term "unrecognized actuarial gain/loss" means an actuarial gain/loss that has not been reported as an expense (including reporting as a reduction in expenses or reporting as a profit when the reduction exceeds the amount of expenses; the same applies hereinafter) as an item constituting the net income for the period or the net loss for the period.

(63)As used in this Regulation, the term "unrecognized past service cost" means a past service cost that has not been reported as an expense as an item constituting the net income for the period or the net loss for the period.

Article 8-2With regard to accounting policies, the following matters must be set down in the notes; provided, however, that notes may be omitted for immaterial matters:

Article 8-3(1)If a change in accounting Policies is made in line with revision or abolition of accounting standards or any other rules (hereinafter referred to as "accounting standards, etc.") or preparation of new accounting standards, etc. (referred to as "revision, etc. of accounting standards, etc." in the following Article) (limited to when the accounting standards, etc. do not provide for transitional measures concerning retrospective application), the following matters must be set down in the notes; provided, however, that if the same contents are to be entered in consolidated financial statements for the matters set forth in items (iii) to (v), entries of those matters may be omitted by making a statement to that effect:

(2)Notwithstanding the provisions of the preceding paragraph, if principle-based treatment pertaining to retrospective application (meaning the reflection of the cumulative effects resulting from retrospective application to all business years prior to the previous business year in the amounts of assets, liabilities, and net assets at the beginning of the previous business year; the same applies hereinafter) is not possible in practice, the matters specified in the following items for the respective categories of cases set forth in those items must be set down in the notes; provided, however, that if the same contents are to be entered in consolidated financial statements for the matters set forth in item (i), (e) to (g) and item (ii), (e) to (g), entries of those matters may be omitted by making a statement to that effect:

(3)If any accounting processes have been implemented in accordance with transitional measures related to retrospective application prescribed in accounting standards, etc. and retrospective application has not been performed, the following matters must be set down in the notes; provided, however, that if the same contents are to be entered in consolidated financial statements for the matters set forth in items (iii) and (iv), entries of those matters may be omitted by making a statement to that effect:

(4)Notwithstanding the provisions of the preceding three paragraphs, if the matters that must be set down in the notes pursuant to these provisions are not material, the notes may be omitted.

Article 8-3-2(1)If a change in accounting policies is made based on justifiable grounds other than a revision, etc. of accounting standards, etc., the following matters must be set down in the notes; provided, however, that if the same contents are to be entered in consolidated financial statements for the matters set forth in items (iii) to (v), entries of those matters may be omitted by making a statement to that effect:

(2)Notwithstanding the provisions of the preceding paragraph, if principle-based treatment pertaining to retrospective application is not possible in practice, the matters specified in the following items for the respective categories of cases set forth in those items must be set down in the notes; provided, however, that if the same contents are to be entered in consolidated financial statements for the matters set forth in item (i), (e) to (g) and item (ii), (e) to (g), entries of those matters may be omitted by making a statement to that effect:

(3)Notwithstanding the provisions of the preceding two paragraphs, if the matters that must be set down in the notes pursuant to these provisions are not material, the notes may be omitted.

Article 8-3-3(1)If any of the already published accounting standards, etc. have not been applied, the following matters must be set down in the notes; provided, however, that notes may be omitted for immaterial matters:

(2)The matters set forth in the items of the preceding paragraph are not required to be entered when a company submitting financial statements prepares consolidated financial statements.

Article 8-3-4(1)If a change in presentation method is made, the following matters must be set down in the notes:

(2)Notwithstanding the provisions of the preceding paragraph, if reclassification of financial statements is not possible in practice, the reason therefor must be set down in the notes.

(3)Notwithstanding the provisions of the preceding two paragraphs, if the matters that must be set down in the notes pursuant to these provisions are not material, the notes may be omitted.

(4)If the same contents are to be entered in consolidated financial statements for the matters set forth in paragraph (1) (limited to the part pertaining to items (ii) and (iii)) and paragraph (2), entries of those matters may be omitted by making a statement to that effect.

Article 8-3-5If a change in accounting estimates is made, the following matters must be set down in the notes; provided, however, that notes may be omitted for immaterial matters:

Article 8-3-6If it is difficult to distinguish a change in accounting Policies from a change in accounting estimates, the following matters must be set down in the notes; provided, however, that notes may be omitted for immaterial matters:

Article 8-3-7If a restatement was made, the following matters must be set down in the notes; provided, however, that notes may be omitted for immaterial matters:

Article 8-4If any events that will exert a material impact on the financial position, operating results and cash flow conditions of a company submitting financial statements in and/or after the following business year occur after the balance sheet date (those events are hereinafter referred to as "material post-balance sheet events"), those events must be set down in the notes.

Article 8-5In addition to the notes particularly specified under this Regulation, if there are any matters that are found to be necessary for interested persons to make adequate judgments on the financial position, operating results and cash flow conditions of the company, those matters must be set down in the notes.

Article 8-6(1)With regard to finance lease transactions (meaning lease transactions under a lease contract that may not be cancelled before the expiration of the lease period under the lease contract, or lease transactions equivalent thereto (referred to as "non-cancelable lease transactions" in the following paragraph), wherein the lessee of the property that is being used under the lease contract (hereinafter referred to as the "leased property") is able to materially enjoy an economic benefit brought about by the leased property, and, also, that the lessee materially bears the expenses, etc. that arise in line with the use of the leased property; the same applies hereinafter), the matters specified in the following items for the respective categories of cases set forth in those items must be set down in the notes; provided, however, that notes may be omitted for immaterial matters:

(2)With regard to operating lease transactions (meaning lease transactions other than finance lease transactions) that are non-cancelable lease transactions as of the end of the current business year, the amounts of future lease payments in the non-cancelable lease transactions must be set down in the notes after being categorized into amounts for the portion of the lease period that is within one year and amounts for other portions of the lease period; provided, however, that notes may be omitted for immaterial matters.

(3)For sublease transactions (meaning transactions where one party is leased a property by the owner of the leased property, and further leases out the property to a third party under nearly the same conditions; hereinafter the same applies in this paragraph) wherein the lease transactions that a company submitting financial statements carries out as the lessee and the lease transactions the company submitting financial statements carries out as the lessor both fall under the category of finance lease transactions, if the company submitting financial statements has reported, on the balance sheet, lease receivables or lease investment assets, or lease obligations under the sublease transactions at their amounts before the deduction of amounts equivalent to interest expenses, the amounts of the lease receivables or lease investment assets, or lease obligations must be set down in the notes; provided, however, that notes may be omitted for immaterial matters.

(4)The matters prescribed in the preceding paragraphs are not required to be entered when a company submitting financial statements prepares consolidated financial statements.

Article 8-6-2(1)With regard to financial instruments, the following matters must be set down in the notes; provided, however, that notes may be omitted for immaterial matters:

(2)The matters set forth in item (ii), (b) to (e) of the preceding paragraph are not required to be set down in the notes, if it is extremely difficult to identify the market values. In this case, an entry to that effect and the reason therefor must be set down in the notes.

(3)For a company submitting financial statements whose financial assets and financial liabilities constitute most of the total amount of assets and the total amount of liabilities and are also material in light of the business purpose of the company, if there are material rates of fluctuation in the values of the financial assets and financial liabilities in response to fluctuations in the numerical values of the indicators that are the cause of major market risks (meaning risks of losses incurred by fluctuations in money rates, currency values, quotations on a financial instruments market (meaning a financial instruments market as prescribed in Article 2, paragraph (14) of the Act; hereinafter the same applies in this paragraph) or any other indicators; hereinafter the same applies in this paragraph and the following paragraph) for the financial assets and financial liabilities, the matters specified in the following items for the respective categories of financial instruments set forth in those items must be set down in the notes:

(4)If the matters set forth in item (ii), (b) of the preceding paragraph do not appropriately reflect the actual conditions of market risks associated with the company submitting financial statements, an entry to that effect and the reason therefor must be set down in the notes.

(5)With regard to monetary claims (excluding those held for the purpose of gaining a profit from fluctuations in the market value) and securities (excluding trading securities) that have maturity periods, the total amount of the claims or securities to be redeemed within a certain period must be set down in the notes.

(6)With regard to corporate bonds, long-term borrowings, lease obligations, and any other debts which require the payment of interest, the total amount of the debts to be repaid within a certain period must be set down in the notes; provided, however, that if the amount is entered in the schedule of corporate bonds prescribed in Article 121, paragraph (1), item (iii) or in the schedule of borrowings, etc. prescribed in item (iv) of that paragraph, a statement to that effect may be set down in the notes in lieu of entering the amount.

(7)The matters specified in the preceding paragraphs are not required to be entered when a company submitting financial statements prepares consolidated financial statements.

Article 8-7(1)In addition to the matters specified in the preceding Article (excluding paragraph (7)), with regard to securities, the matters specified in the following items for the respective categories of securities set forth in those items must be set down in the notes; provided, however, that notes may be omitted for immaterial matters:

(2)If the purpose of holding trading securities, bonds held to maturity, shares in a subsidiary company, shares in an affiliated company, or other securities has changed during the relevant business year, an entry to that effect, the reason for the change (limited if the purpose of holding bonds held to maturity has changed), and details of the impact of the change on the financial statements must be set down in the notes; provided, however, that notes may be omitted for immaterial matters.

(3)If an impairment loss on securities during the relevant business year has been recognized, an entry to that effect and the amount of the impairment losses must be set down in the notes; provided, however, that notes may be omitted for immaterial matters.

(4)The matters specified in the preceding paragraphs (excluding paragraph (1), item (iii)) are not required to be entered when a company submitting financial statements prepares consolidated financial statements.

Article 8-8(1)In addition to the matters specified in Article 8-6-2 (excluding paragraph (7)), with regard to derivatives transactions, the matters specified in the following items for the respective categories of transactions set forth in those items must be set down in the notes; provided, however, that notes may be omitted for immaterial matters:

(2)The matters specified in item (i) of the preceding paragraph must be entered after being classified into transaction types (meaning Futures Transactions, options transactions, forward transactions, swap transactions, and any other derivatives transactions; the same applies in the following paragraph), into market transactions and transactions other than market transactions, into transactions on purchase contracts and those on sale contracts, and into the period from the balance sheet date to the settlement date of the transaction or to the time of termination of the contract, and other matters.

(3)The matters specified in paragraph (1), item (ii) must be entered after being classified into the method of hedge accounting, the type of transaction, the hedged items, and other matters.

(4)The matters specified in paragraph (1) are not required to be entered when a company submitting financial statements prepares consolidated financial statements.

Article 8-9For a company that does not prepare consolidated financial statements, the matters specified in the following items for the respective categories of cases set forth in those items must be set down in the notes; provided, however, that, with regard to the matters specified in item (i), any affiliated company that is not material in terms of its profit or loss the retained earnings and any other items may be excluded:

Article 8-10(1)If a Company Submitting Financial Statements carries out transactions with any related party (the transactions include any transactions which the related party carries out with the company submitting financial statements for the benefit of a third party and any transactions carried out between the company submitting financial statements and a third party wherein the related party exerts a material impact on the company submitting financial statements with regard to the transactions), the following matters must be set down in the notes for each related party, with regard to any of the transactions that are material; provided, however, that this does not apply when the company submitting financial statements prepares consolidated financial statements:

(2)Notwithstanding the provisions of the main clause of the preceding paragraph, the matters set forth in items (ix) and (x) of that paragraph may be entered as a combined amount for each type of related party set forth in the items of Article 8, paragraph (17).

(3)With regard to any of the transactions with a related party that are specified in the following items, the notes prescribed in paragraph (1) are not required:

(4)The matters set forth in paragraph (1) must be set down in the notes in accordance with Form No. 1.

Article 8-10-2(1)If any of the entities set forth in the following items exist for a company submitting financial statements, the matters specified in each of those items must be set down in the notes; provided, however, that this does not apply when the company submitting financial statements prepares consolidated financial statements:

(2)The amounts for the items set forth in item (ii), (a) and (b) of the preceding paragraph may, notwithstanding the provisions of the same paragraph, be entered in either of the following ways; in this case, a statement to that effect must be made:

Article 8-11With regard to corporate taxes and any other taxes that are imposed with amounts related to profits as the tax base (hereinafter referred to as "corporate tax, etc."), financial statements must be prepared by applying tax effect accounting (meaning an accounting process which, when there are differences between the amounts of assets and liabilities reported on the balance sheet and the amounts of assets and liabilities derived as a result of calculating the taxable income, reasonably matches the amount of net income for the period before deducing corporate tax, etc. with the applicable amount of corporate tax, etc. through an appropriate inter-period allocation of the amount of corporate tax, etc. pertaining to the differences; the same applies hereinafter).

Article 8-12(1)When tax effect accounting is applied pursuant to the provisions of the preceding Article, the matters set forth in the following items must be set down in the notes:

(2)If any amount has been deducted from deferred tax assets if calculating the deferred tax assets, the amount must be set down in the notes in addition to the matters set forth in item (i) of the preceding paragraph.

(3)With regard to the matters set forth in paragraph (1), item (ii), the notes may be omitted if the difference between the normal effective statutory tax rate and the corporate tax burden rate, etc. after the application of tax effect accounting is not more than five percent of the normal effective statutory tax rate.

Article 8-13(1)If a defined-benefit plan (meaning a retirement benefit plan other than a defined-contribution plan (meaning a retirement benefit plan whereby a company, etc. accumulates certain premiums outside of the company, etc. and bears no obligation to contribute any additional funds for retirement benefits other than the premiums; the same applies in paragraph (1) of the following Article); the same applies in item (i) and Article 8-13-3, paragraph (1)) is adopted for retirement benefits, the following matters must be set down in the notes:

(2)Items categorized as those set forth in item (ii), (f), item (iii), (e), and item (v), (f) of the preceding paragraph must be set down with a name that is indicative of the item, unless its amount is found to be immaterial.

(3)The matters specified in paragraph (1) are not required to be entered when a company submitting financial statements prepares consolidated financial statements.

Article 8-13-2(1)If a defined-contribution plan is adopted for retirement benefits, the following matters must be set down in the notes:

(2)The matters specified in the preceding paragraph are not required to be entered when a company submitting financial statements prepares consolidated financial statements.

Article 8-13-3(1)Notwithstanding the provisions of Article 8-13, if a defined-benefit plan established by multiple companies, etc. which are employers (hereinafter referred to as a "multi-employer plan" in this paragraph) is adopted for retirement benefits, the matters specified in the following items for the respective categories of cases set forth in those items must be set down in the notes:

(2)The matters that must be set down in the notes pursuant to the provisions of item (i) of the preceding paragraph may be included in the notes set forth in the items of Article 8-13, paragraph (1). In this case, a statement to that effect must be made.

(3)The matters specified in the preceding two paragraphs are not required to be entered when a company submitting financial statements prepares consolidated financial statements.

Article 8-14(1)If a company submitting financial statements has granted stock options or share options in the company or delivered shares in the company, the following matters must be set down in the notes; provided, however, that this does not apply if it is otherwise provided for:

(2)The matters set forth in the preceding paragraph are not required to be entered when a company submitting financial statements prepares consolidated financial statements.

Article 8-15(1)In addition to the provisions of the preceding Article, the following matters must be set down in the notes as the details of the stock options, the volume of stock option activity, and changes thereto:

(2)The notes set forth in the preceding paragraph must be entered in either of the following ways:

(3)Notwithstanding the provisions of the preceding paragraph, notes for the following stock options must not be entered collectively for multiple contracts:

(4)With regard to stock options granted during the current business year and stock options whose fair unit value has changed due to changes in conditions during the current business year, the calculation technique used as the method for estimating the fair unit value and the main basic numerical values used along with the method for estimating the values must be entered; provided, however, that the calculation technique used and the method for estimating the main basic numerical values used may be entered collectively for stock options that have used the same methods.

(5)The method for estimating the number of stock options forfeited due to non-attainment of service conditions or performance conditions must be entered as the method for estimating the number of stock options vested.

(6)If an unlisted enterprise has granted stock options, it must enter the valuation method for the shares in the company on which the calculation of the fair unit value is based, as the method for estimating the fair unit value.

(7)If a calculation has been made based on the per-unit intrinsic value (meaning the per-unit value assuming the exercise of stock options, comprised of the difference between the amount at which the shares in the company that constitute the underlying assets of the stock options are valued as of that point in time and the exercise price; hereinafter the same applies in this paragraph) of the stock options, the total amount of the intrinsic value as of the end of the business year, and the total amount of the Intrinsic Value as of the exercise dates of the stock options that were exercised during the relevant business year must be set down in the notes.

(8)If there has been a change in the matters set down in the notes as the details of stock options as a result of the conditions of the stock options having changed, the details of the change must be set down in the notes. If the fair unit value has not been reviewed because the fair unit value of the stock options as of the date that the conditions changed was lower than the fair unit value as of the grant date, an entry to that effect must be set down in the notes.

(9)The matters specified in paragraph (1) through the preceding paragraph are not required to be entered when a company submitting financial statements prepares consolidated financial statements.

Article 8-16(1)In addition to what is provided for in Article 8-14, if share options in the company have been granted or shares in the company have been delivered as the consideration for services received or goods acquired, any matters set forth in the items of paragraph (1) of the preceding Article which are relevant must be entered in an equivalent manner as under the same Article.In this case, the details of the services received or the goods acquired, and, if the consideration for the services or the acquisition price of the goods was calculated based on the fair unit value of the services or goods, an entry to that effect must be set down in the notes.

(2)If the granting of share options in the company or the delivery of shares in the company does not have the nature of consideration, a statement to that effect and the grounds for determining that it does not have the nature of consideration must be made.

(3)The matters specified in the preceding two paragraphs are not required to be entered when a company submitting financial statements prepares consolidated financial statements.

Article 8-17(1)If a business combination has been carried out during the relevant business year through acquisition of another Enterprise or a business segment of another enterprise (excluding the cases prescribed in paragraph (1) of the following Article and the main clause of Article 8-19, paragraph (1)), the following matters must be set down in the notes:

(2)Notwithstanding the provisions of the preceding paragraph, if the transaction in the business combination is not material, the notes may be omitted; provided, however, that if, the transactions in individual business combinations during the business year are not material, but the transactions in multiple business combinations during the relevant business year are material as a whole, the matters set forth in item (i) and items (iii) to (x) of the preceding paragraph must be set down in the notes for the transactions in the business combinations as a whole.

(3)The estimated effects set forth in paragraph (1), item (xi) are any of the following amounts and, if the notes have yet to receive an audit certification, a statement to that effect must be made:

(4)If a material review has been made in the initially allocated amounts of the acquisition costs in the current business year in line with the determination of the provisional accounting process pertaining to the business combination implemented in the previous business year, the details and amounts of the review must be set down in the notes.

(5)The matters prescribed in paragraph (1), paragraph (2), and the preceding paragraph are not required to be entered if the same contents are to be entered in consolidated financial statements. In this case, a statement to that effect must be made.

Article 8-18(1)If a business combination resulting in reverse acquisition has been carried out during the relevant business year, the matters equivalent to the matters set forth in paragraph (1), items (i) to (x) of the preceding Article and the effects that would be exerted on the balance sheet and the profit and loss statement if the purchase method is assumed to have been applied to the business combination must be set down in the notes.

(2)The effects prescribed in the preceding paragraph are any of the following amounts:

(3)The matters and the effects prescribed in paragraph (1) are not required to be entered when the enterprise specified in the following items for the respective categories of business combination set forth in those items prepares consolidated financial Statements; in this case, a statement to that effect must be made:

(4)If the notes have been made pursuant to the provisions of paragraph (1), the matters and the effects prescribed in that paragraph must be set down in the notes in and after the business year following the business year in which the business combination was carried out unless the effects become immaterial; provided, however, that if the enterprise specified in the items in the preceding paragraph for the respective categories of business combination set forth in those items has started preparing consolidated financial statements, a statement to that effect must be made in lieu of entering those matters and effects:

Article 8-19(1)If a business combination through the acquisition of another Enterprise has been carried out during the relevant business year through multiple transactions, the following matters must be set down in the notes; provided, however, that they are not required to be entered when the combined enterprise prepares consolidated financial statements:

(2)If the notes have been made pursuant to the provisions of the main clause of the preceding paragraph, the matters set forth in the items of that paragraph must be set down in the notes in and after the business year following the business year in which the business combination was carried out unless the effects become immaterial; provided, however, that if the combined enterprise has started preparing consolidated financial statements, they are not required to be entered.

Article 8-20(1)If a common control transaction, etc. has been carried out during the relevant business year, the following matters must be set down in the notes:

(2)Notwithstanding the provisions of the preceding paragraph, if the common control transaction, etc. is not material, the notes may be omitted; provided, however, that if, individual common control transactions, etc. during the relevant business year are not material, but the multiple common control transactions, etc. during the relevant business year are material as a whole, the matters set forth in the items of that paragraph must be entered for the common control transactions, etc. as a whole.

(3)The matters specified in the preceding two paragraphs are not required to be entered if the same contents are to be entered in consolidated financial statements. In this case, a statement to that effect must be made.

Article 8-21(1)If a subsidiary company has absorbed its parent company through an absorption-type merger, if the subsidiary company, which is the company submitting financial statements, does not prepare consolidated financial statements, the effects that would have been exerted during the relevant business year in the case of assuming that the parent company has become the surviving company must be set down in the notes; provided, however, that if the effects are immaterial, the notes may be omitted.

(2)The effects prescribed in the preceding paragraph are any of the following amounts:

(3)If the notes have been made pursuant to the provisions of the main clause of paragraph (1), the effects prescribed in that paragraph must be set down in the notes in and after the business year following the business year in which the business combination was carried out unless the effects become immaterial; provided, however, that if the subsidiary company has started preparing consolidated financial statements, they are not required to be entered.

Article 8-22(1)If a business combination forming a jointly controlled enterprise (hereinafter referred to as a "formation of a jointly controlled enterprise" in this Article and paragraph (1) of the following Article) has been carried out during the relevant business year, the following matters must be set down in the notes:

(2)Notwithstanding the provisions of the preceding paragraph, if the transaction in the formation of a jointly controlled enterprise is not material, the notes may be omitted; provided, however, that if the transactions in the individual formations of a jointly controlled enterprise during the relevant business year are not material, but the transactions in multiple formations of a jointly controlled enterprise during the relevant business year are material as a whole, the matters set forth in that paragraph must be set down in the notes for the transactions in business combinations as a whole.

(3)The matters specified in the preceding two paragraphs are not required to be entered if the same contents are to be entered in consolidated financial statements. In this case, a statement to that effect must be made.

Article 8-23(1)If a business divestiture has been carried out during the current business year, and the business divestiture falls under neither a common control transaction, etc. nor as the formation of a jointly controlled enterprise, the following matters must be set down in the notes:

(2)The entry set forth in item (iv) of the preceding paragraph may be omitted if the continuing involvement is immaterial.

(3)Notwithstanding the provisions of paragraph (1), if the effects of the business divestiture are not material, the notes may be omitted; provided, however, that if, individual transactions are not material, but the transactions carried out during the business year in which the business divestitures were implemented are material as a whole, the matters set forth in items (i) and (ii) of that paragraph must be set down in the notes for the transactions as a whole.

(4)The matters specified in paragraph (1) and the preceding paragraph are not required to be entered if the same contents are to be entered in consolidated financial statements. In this case, a statement to that effect must be made.

Article 8-24(1)If a business divestiture does not fall under a business combination, the Successor Enterprise must set down in the notes the following matters:

(2)The matters prescribed in the preceding paragraph are not required to be entered if the same contents are to be entered in consolidated financial statements. In this case, a statement to that effect must be made.

Article 8-25(1)If a business combination that has been completed after the balance sheet date or a business combination wherein an agreement has been reached on major conditions after the balance sheet date falls under a material post-balance sheet event, the matters concerning the business combination must be set down in the notes in an equivalent manner as under the provisions of Article 8-17 (excluding items (ii), (x) and (xi) of paragraph (1)), Article 8-20 or Article 8-22; provided, however, that any matters that have yet to be determined are not required to be entered.

(2)If a business combination wherein an agreement has been reached on major conditions by the balance sheet date has not been completed by that date (excluding the cases prescribed in the preceding paragraph), the matters concerning the business combination must be set down in the notes in an equivalent manner as under the provisions of the preceding paragraph.

(3)The matters specified in the preceding two paragraphs are not required to be entered if the same contents are to be entered in consolidated financial statements. In this case, a statement to that effect must be made.

Article 8-26(1)In the cases set forth in the following items, the divesting enterprise must set down in the notes the matters specified in those items for the business divesture:

(2)The matters specified in the items of the preceding paragraph are not required to be entered if the same contents are to be entered in consolidated financial statements. In this case, a statement to that effect must be made.

Article 8-27If, as of the balance sheet date, there is an event or circumstance that would raise material doubt about an assumption that the company will stay in business in the future (hereinafter referred to as the "going concern assumption"), material uncertainty on the going concern assumption is still recognized even after measures for eliminating or improving that event or circumstance are taken, the following matters must be set down in the notes; provided, however, that if the material uncertainty ceases to be recognized after the balance sheet date, they are not required to be set down in the notes:

Article 8-28(1)With regard to asset retirement obligations, the matters specified in the following items for the respective categories of asset retirement obligations set forth in those items must be set down in the notes; provided, however, that notes may be omitted for immaterial matters:

(2)The matters specified in the items of the preceding paragraph are not required to be entered when a company submitting financial statements prepares consolidated financial statements.

Article 8-29(1)With regard to information on a certain unit of an enterprise (hereinafter referred to as a "reporting segment") (that information is hereinafter referred to as "segment information"), the following matters must be set down in the notes in accordance with Form No. 2:

(2)With regard to information related to a reporting segment (referred to as "related information" in Form No. 3), the following matters must be set down in the notes in accordance with that form:

(3)If the following items are reported in the balance sheet or the profit and loss statement, the outline for each reporting segment must be set down in the notes in accordance with Form No. 4:

(4)Notwithstanding the provisions of the preceding three paragraphs, notes may be omitted for immaterial matters.

(5)The matters set forth in the items of paragraph (1) and the items of paragraph (2) and the outline prescribed in paragraph (3) are not required to be entered when a company submitting financial statements prepares consolidated financial statements.

Article 8-30(1)If there is any rental, etc. real property (meaning a real property which is other than a real property classified as an inventory asset and is owned for the purpose of revenues or profits from rental or transfer; hereinafter the same applies in this paragraph), the following matters must be set down in the notes; provided, however, that if the total amount of rental, etc. real properties is not material, the notes may be omitted:

(2)The matters prescribed in the preceding paragraph are not required to be entered when a company submitting financial statements prepares consolidated financial statements.

Article 9(1)The notes under Article 8-2 must be included immediately after the cash flow statement.

(2)The notes under Articles 8-3 and 8-3-2 must be included immediately after the notes under Article 8-2.

(3)The notes to be included pursuant to the provisions of this Regulation (excluding the notes under Articles 8-2 to 8-3-2) must be included immediately after the notes under Articles 8-3 and 8-3-2, except for those that are found appropriate to be included as footnotes (meaning the notes included at the end of the table or account statement contained in the Financial Statements in which the matters pertaining to the notes are entered; the same applies hereinafter); provided, however, that matters related to the notes under Article 8-2 may be entered together therewith.

(4)Notwithstanding the provisions of the preceding paragraph, the notes under Article 8-27 must be included immediately after the cash flow statement.In this case, notwithstanding the provisions of paragraph (1), the notes under Article 8-2 must be included immediately after the notes under Article 8-27.

(5)If notes that are related to a specific account title are included pursuant to the provisions of this Regulation, the association between the account title and the notes must be made clear by appending a symbol to the account title or by other similar methods.

Article 10If, for financial statements that are to be submitted pursuant to the provisions of the Act by a stock company or a designated corporation engaged in a business to which the provisions of Article 2 apply, there are matters that are identical to those that must be set down in the notes pursuant to the provisions of this Regulation, notes under this Regulation must be included for those matters, notwithstanding the provisions of laws, regulations, or rules when there are special provisions of law or regulations as provided for in the main clause of Article 2; provided, however, that this does not apply to matters that the Commissioner of the Financial Services Agency finds inappropriate to be included in the notes with regard to a specific business, and in regard to which the Commissioner has given special instructions to that effect.

Article 10-2If, for financial statements to be prepared for specified trust property, there are matters that are identical to those that must be set down in the notes pursuant to the provisions of this Regulation, notes under this Regulation must be included for those matters, notwithstanding the provisions of the special purpose trust property accounting regulation or the investment trust Property accounting regulation; provided, however, that this does not apply to matters that the Commissioner of the Financial Services Agency finds inappropriate to be included in the notes, and in regard to which the Commissioner has given special instructions to that effect.

Article 10-3The amounts for the account titles and any other matters contained in financial statements are to be presented in units of million yen or thousand yen.

Article 120The methods of entry in a supplementary schedule are in accordance with the provisions of this Chapter.

Article 121(1)The types of supplementary schedules are as follows:

(2)The forms for the supplementary schedules set forth in the items of the preceding paragraph are in accordance with Form No. 10 through Form No. 15.

(3)A company submitting financial statements (limited to an issuer of the securities set forth in Article 24, paragraph (1), item (i) or (ii) of the Financial Instruments and Exchange Act) is not required to prepare the schedule of securities set forth in paragraph (1), item (i) (excluding the cases prescribed in the following Article and Article 123, item (i)).

(4)The supplementary schedules set forth in paragraph (1), items (iii), (iv), and (vi) are not required to be prepared when a company submitting financial statements prepares consolidated financial statements (excluding the cases prescribed in the following Article and Article 123, item (i)).

Article 122The terminology, forms, and preparation methods for supplementary schedules that are to be submitted, pursuant to the provisions of the Act, by the stock companies or designated corporations engaged in a listed business that are set forth in the following items are in accordance with the provisions of each of those items; provided, however, that the supplementary schedules set forth in paragraph (1), items (iii), (iv), and (vi) of the preceding Article and supplementary schedules equivalent thereto are not required to be prepared when the stock company or designated corporation prepares consolidated financial statements:

Article 123The terminology, forms, and preparation methods for a supplementary schedule of specified trust property are in accordance with the provisions of the following items:

Article 124If the amount of securities is not more than one percent of the total amount of assets, preparation of the supplementary schedule set forth in Article 121, paragraph (1), item (i) may be omitted.

Article 125If the amounts of short-term borrowings, long-term borrowings, lease obligations, and other liabilities at the beginning of the relevant business year or the end of the relevant business year which require payment of interest (excluding corporate bonds) are not more than one percent of the combined total of liabilities and net assets at the beginning of the relevant business year or the end of the respective business years, preparation of the supplementary schedule set forth in Article 121, paragraph (1), item (iv) may be omitted.

Article 125-2If the amount of asset retirement obligations at the beginning of the relevant business year or the end of the relevant business year is not more than one percent of the combined total of liabilities and net assets at the beginning of the relevant business year or the end of the respective business years, preparation of the supplementary schedule set forth in Article 121, paragraph (1), item (vi) may be omitted.

Article 126If the preparation of any supplementary schedule has been omitted pursuant to the provisions of Article 124 or Article 125, an entry to that effect must be set down in the notes.

Article 127(1)Notwithstanding the provisions of the preceding Chapters, the forms for the financial statements to be prepared by a special company submitting financial statements may be in accordance with the forms specified in the following items for the respective categories of cases set forth in those items:

(2)Notwithstanding the provisions set forth in the following items, a special company submitting financial statements may prepare notes on the matters specified in the those items in lieu of the notes specified in the provisions set forth in those items:

Article 128When a special company submitting financial statements has prepared financial statements pursuant to the preceding Article, the following matters must be entered:

Article 129(1)The terminology, forms, and preparation methods of financial statements that a specified company complying with designated international accounting standards submits are subject to the provisions of Chapters I to VI.

(2)A specified company complying with designated international accounting standards may prepare financial statements pursuant to Designated International Accounting Standards in addition to financial statements prepared pursuant to the provisions of the preceding paragraph.

Article 130The following matters must be set down in the notes to financial statements prepared in accordance with Designated International Accounting Standards:

Article 131(1)If the Commissioner of the Financial Services Agency gives the approval for a foreign company to submit the documents on financial accounting that it discloses in its home country (including the state or any other region where the company is headquartered; the same applies hereinafter) as financial documents, on finding no risk of this impairing the public interest or the protection of the investors, the terminology, forms, and preparation methods of the financial documents are to be, except for the matters that the Commissioner of the Financial Services Agency finds necessary and gives instructions on, the terminology, forms, and preparation methods used in the home country.

(2)If the documents on financial accounting that a foreign company discloses in its home country have not been approved by the Commissioner of the Financial Services Agency based on the provisions of the preceding paragraph, and the Commissioner of the Financial Services Agency gives the approval for the foreign company to submit the documents on financial accounting that it discloses in an area outside Japan other than its home country as financial documents, on finding no risk of this impairing the public interest or the protection of the investors, the terminology, forms, and preparation methods of the financial documents are to be, except for the matters that the Commissioner of the Financial Services Agency finds necessary and gives instructions on, the terminology, forms, and preparation methods used in the area outside Japan other than its home country.

(3)If a foreign company that has been approved by the Commissioner of the Financial Services Agency to submit the documents on financial accounting that it discloses in an area outside Japan as financial documents pursuant to the provisions of the preceding two paragraphs, submits documents on financial accounting other than those that it discloses in that area, as financial documents, the terminology, forms, and preparation methods of the documents on financial accounting are to be in accordance with the instructions of the Commissioner of the Financial Services Agency.

(4)If the documents on financial accounting that a foreign company discloses in its home country or any other area outside Japan have not been approved by the Commissioner of the Financial Services Agency based on the provisions of paragraph (1) or paragraph (2), the terminology, forms, and preparation methods of financial documents to be submitted by the foreign company are to be in accordance with the instructions of the Commissioner of the Financial Services Agency.

(5)Notwithstanding the provisions of the preceding paragraphs, the terminology, forms, and preparation methods of financial documents which a foreign company that issues regulated securities (meaning regulated securities as prescribed in Article 5, paragraph (1) of the Act) submits with regard to those regulated securities are to be in accordance with the instructions of the Commissioner of the Financial Services Agency; provided, however, that if the Commissioner of the Financial Services Agency approves the foreign company to submit the documents on financial accounting prepared in its home country as financial documents, on finding no risk of impairing the public interest or the protection of the investors, the terminology, forms, and preparation methods of the financial documents are to be, except for the matters that the Commissioner of the Financial Services Agency finds necessary and gives instructions on, the terminology, forms, and preparation methods used in the home country.

Article 132If any accounting principles or procedures adopted by a foreign company with regard to financial documents under paragraphs (1) to (4) of the preceding Article differ from accounting principles and procedures in Japan, the details thereof must be set down in the notes to the financial documents.

Article 133(1)The provisions of Article 5, paragraph (2) and Article 8-3, item (ii) apply mutatis mutandis to financial documents submitted by a foreign company.

(2)If any presentation method of the financial documents submitted by a foreign company differs from the presentation method used in Japan, the details thereof must be set down in the notes in the financial documents.

Article 134If the account titles and any other matters set down in financial documents submitted by a foreign company are presented in monetary amounts in a currency other than Japanese currency, the amounts for major matters are also to be entered in amounts that have been translated into Japanese currency.In this case, the translation standards adopted for the translation into Japanese currency must be set down in the notes to the financial documents.

Article 135(1)The notes to be included pursuant to the provisions of Article 132, Article 133, paragraph (2) and the preceding Article must be included as Footnotes; provided, however, that notes that are found inappropriate to be included as Footnotes may be included in other appropriate places.

(2)The provisions of Article 9, paragraph (3) apply mutatis mutandis to the case of setting down matters in the notes pursuant to the provisions of Article 132 and Article 133, paragraph (2).