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

Article 37. Indications of Current Liabilities Sections The liabilities belonging to current liabilities, must be entered in accord with the division of the items listed below and entered with an item name indicating the said liability. Provided, however, that where the monetary amount of the liability belonging to the said item, other than item iv, is small in amount and where it is recognized that indications together with liabilities belonging to other items is suitable, the entry can be made together with an item having a suitable name.

i. Notes payable and accounts payable.

ii. Short term borrowings (including financial notes and account overdrafts). Provided however, that short term borrowings from shareholders, executives and employees are excluded.

iii. Accrued expenses.

iv. Reserves.

v. Others.

2. The provisions of the previous Paragraph, concerning liabilities belonging to any of the items of the same paragraph for which it is recognized to be suitable to be shown separately, shall not prevent such separate entries with item names indicating the said liabilities.

3. The reserves of Paragraph 1, Item 4 must be entered with an item the name that shows the objective of the establishment of the said reserve.

4. From among the liabilities of Paragraph 1, Item 5, for those with monetary values of 5% or more of the total of the liability and capital sections, a separate entry must be made with an item name indicating the said liability.