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

Article 38. Indications of Classifications of Fixed Liabilities. The liabilities belonging to fixed 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, where the monetary amount of the liability belonging to the said item excepting item iii, 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. Bonds

ii. Long term loans (including financial notes. Hereinafter the same). Provided however that long term loans from shareholders, executives and employees are excluded

iii. Reserves

iv. Others.

2. The provisions of Paragraph 2 of the previous Article apply mutatis mutandis in the cases of the previous paragraph.

3. The provisions of the previous Article, Paragraph 3 apply mutatis mutandis concerning the liability reserves of Paragraph 1, Item iii.

4. The provisions of the previous Article, Paragraph 4 apply mutatis mutandis concerning the liabilities of Paragraph 1, Item iv.