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

Article 15-2 Notation of Segment Information

1. In those situations where a consolidated company is engaged in two or more different businesses, a note must be made divided into categories according to the respective type of business, of the amount of sales in each category (including service income. Hereinafter the same), the amount of operating profits or operating losses, and the amount of assets (hereinafter in this Article "sales, etc") and the amount of depreciation and capital expenditures.However, when the total amount of the sales, etc falling under the said categories is small in amount, it is possible to note them lumped together in another classification bearing a suitable name.

2. In those situations where the consolidated company exists also in another country or region other than this country (meaning the "this country" provided for in Article 6, Paragraph 1, Item 1 of the Foreign Exchange and Foreign Trade Control Law (Law No. 228, of 1949), hereinafter the same) a note must be made of the sales, etc for each of the countries or regions where the consolidated company is located (including countries or region groups deemed appropriate to handle as a single region, where the said country or region is outside this country). However, where the amount of the sales falling under such classifications are minimal, it is possible to note them lumped together in another classification bearing a suitable name.

3. Where the consolidated company has sales in a country or region other than this country (including countries or region groups deemed appropriate to handle as a single region. Hereinafter in this Paragraph the same) a note must be made based on the provisions of the previous Paragraph, of the sales for each such country or region. However, where the amount of the sales falling under such classifications are minimal, it is possible to note them lumped together in another classification bearing a suitable name.