REGULATIONS CONCERNING TERMINOLOGY, FORMS AND METHODS OF PREPARATION OF FINANCIAL STATEMENTS, ETC. Copyright Roderick Seeman

Section 4. Deferred Charges.

Article 36 Deferred Charges

The assets listed hereunders shall fall under deferred charges:

i. Organization expenses (meaning the monetary sum paid based on the provisions of Article 168, Paragraph 1, Item 7 of the Commercial Code and the taxes paid when the establishment of the company was registered. Hereinafter the same)

ii. Initial costs. (meaning the expenses in preparation for initiation of business, paid out until the company initiated business after the company's establishment. Hereinafter the same.)

iii. Stock issue expenses (meaning expenses paid directly for the fees for stock issues and other expenses for stock issues. Hereinafter the same.)

iv. Bond issue expenses (meaning the expenses paid directly for bond issue fees and other expenses for bond issues. Hereinafter the same).

v. Unamortized bond discounts (meaning the bond discount amounts based on the provisions of Article 287 of the Commercial Code. Hereinafter the same.)

vi. Development expenses (meaning expenses specifically paid for the adoption of new technology or new operations structures, or for the development of raw materials or markets. Hereinafter the same)

viii. Experimental and research expenses. (Meaning expenses specifically paid for research on new products or new technologies. Hereinafter the same)

viii. Interest during construction (meaning the interest paid via dividends to shareholders based on the provisions of Article 291, Paragraph 1 of the Commercial Code. Hereinafter the same)

2. The provisions of Article 17, Paragraph 2, apply mutatis mutandis in the situations of the previous Paragraph.