TERMINOLOGY, FORMS & METHODS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS. COPYRIGHT RODERICK SEEMAN

Article 4. General Principals of the Preparation of Consolidated Financial Statements The terms, forms and methods of preparation of consolidated financial statements filed based on the provisions of the Law must be in conformity with the standards noted hereunder.

i. Sincere and factual indications shall be made of the substance of the financial condition and operating results of the corporate group (the company filing consolidated financial statements and its subsidiaries. Hereinafter the same.)

ii. They shall be prepared based on the financial statements of consolidated companies which are prepared based on corporate accounting standards generally recognized as fair and appropriate.

iii. Necessary financial information concerning interested related parties of the company filing consolidated financial statements shall be made clear in order to avoid misunderstandings on the financial and operating conditions of the business group.

iv. Concerning the standards and procedures the company filing consolidated financial statements adopts in order to prepare consolidated financial statements, they shall continue to be used in each and every consolidated business year, excepting where changes are made based on suitable reasons.

2. Concerning matters that should be entered in consolidated financial statements, the substance of which is the same, the same methods of indication must be adopted through each and every consolidated business year in which consolidated financial statements are prepared. However, these restrictions shall not apply when there are suitable reasons.