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

Section 5 Miscellaneous

Article 39. (Notations of Assets in Affiliated Companies) In those situations where the total of notes receivable trade and accounts receivable trade which arose from transactions with affiliated companies exceed 1% of the total assets of the company, there must be an entry separately made concerning the said notes receivable trade and accounts receivable trade, bearing the heading of notes receivable trade from affiliated companies and accounts receivable trade from affiliated companies. However, in those situations where either of the notes receivable trade from affiliated companies or accounts receivable trade from affiliated companies are less than 1% of total assets, it is possible to make an entry of the total thereof only.

2. Concerning claimable rights (excluding notes receivable accounts receivable, and matters noted by division based on the provisions of Article 32, Paragraph 1), goods not yet arrived, consignments, prepaid expenses, or accrued income that arose from transactions with affiliated companies, the monetary amount for which exceed 1% of total assets, there must be a notation of the amount thereof made separately for each with a title showing that they are made with a affiliated company.

3. In those situations where assets are in affiliated companies as provided in the previous two Paragraphs, and the total money value of those things other than those which are entered by a division with a name based on the previous two Paragraphs exceed 1% of the total assets, there must be a note to that effect and the money value thereof.