Integrated Report 2020

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• Accounting Standard for Accounting Policy Disclosures, Accounting Changes and Error Corrections (ASBJ Statement No.24 revised on March 31, 2020)(1)OverviewThis standard provides an overview of the accounting principles and procedures adopted when the relevant accounting standards are not clear.(2)Application scheduleThis accounting standard will be adopted from the fiscal year ending March 31, 2021.• Accounting Standard for Disclosure of Accounting Estimates (ASBJ Statement No.31 issued on March 31, 2020)(1)OverviewThe purpose of this accounting standard is to disclose information that contributes to the understanding of users of financial statements regarding the content of accounting estimates for items that have a risk of having a significant impact on the financial statements for the following years, out of the amounts recorded in the financial statements for the current year based on accounting estimates.(2)Application scheduleThis accounting standard will be adopted from the fiscal year ending March 31, 2021.• Accounting Standard for Fair Value Measurement (ASBJ Statement No. 30 issued on July 4, 2019)• Implementation Guidance on Accounting Standard for Fair Value Measurement (ASBJ Guidance No. 31 issued on July 4, 2019)• Accounting Standard for Financial Instruments (ASBJ Statement No. 10 revised on July 4, 2019)• Implementation Guidance on Disclosures about Fair Value of Financial Instruments (ASBJ Guidance No. 19 revised on March 31, 2020)(1)OverviewTo improve comparability with International accounting standards, “Accounting Standard for Fair Value Measurement” and “Implementation Guidance on Accounting Standard for Fair Value Measurement” (hereinafter referred to as “Accounting Standards for Fair Value Measurement”) were developed and provided guidance such as how to calculate the market value. Accounting standards for fair value measurement are applied to the market prices of the following items:• Financial instruments under “Accounting Standard for Financial Instruments”• Inventories held for sales and trading purposes under “Accounting Standard for Measurement of Inventories”In addition, the “Implementation Guidance on Disclosures about Fair Value of Financial Instruments” has been revised, and notes such as a breakdown by level of the fair value of financial instru-ments have been established.(2)Application scheduleThese accounting standards will be adopted from the beginning of the year ending March 31, 2021.(3)Effect of applicationThe amount of the impact was still being assessed when these consolidated financial statements were prepared.• Foreign subsidiariesStandard/InterpretationOverviewApplication scheduleASU 2019-10 “Lease”Revision to accounting treatment for leaseFrom the fiscal year ending March 31, 2022Note: The amount of impact was still being assessed when these consolidatedfinancial statements were prepared.(u) Changes in accounting principleIFRS 16 “Leases” has been applied from the beginning of the year ended March 31, 2020, excluding the Company and domestic consoli-dated subsidiaries that adopt Japanese accounting standards (J-GAAP) and overseas consolidated subsidiaries that adopt US accounting standards (US-GAAP). Herewith, lessees, in principle, record all leases as assets and liabilities on the consolidated balance sheet. Upon applying IFRS 16, the LINTEC Group has adopted the method where the cumulative effect of applying this standard is recognized at date of initial application, which is allowed as a transitional measure.As a result, “Property, plant and equipment” increased by 1,808 million yen (U.S.16,617 thousand) and “Other” in current liabilities and in non-current liabilities increased by 506 million yen (U.S.4,656 thousand) and 1,272 million yen (U.S.11,689 thousand) respectively for the end of the fiscal year. The impact of these changes on the profit for the year is immaterial.(v) Additional informationThe LINTEC Group anticipates that the impact of the New coronavirus infection (COVID-19) will reduce orders in the various business areas in the first and second quarters for the year ending March 31, 2021 due to the deterioration of the demand environment. Our accounting estimates were made on the assumption that our business activity will recover normal condition from the third quarter for the year ending March 31, 2021.LINTEC Integrated Report 2020FoundationStrategyOverviewFinancial Information79