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

CHAPTER 1 GENERAL PRINCIPALS OF APPLICATION

Article 1. General Principles of Application The terminology, forms and methods of preparing balance sheets, income statements, statements of appropriations of retained earnings or statements of disposition of deficits, and supplementary statements (hereinafter referred to as "financial statements") (including such corresponding to the "financial statements" prepared by "designated corporations", hereinafter the same) from among the statements concerning financial accounts which are filed based on Securities Exchange Law Article 5; Article 7; Article 9, Paragraph 1; Article 10, Paragraph 1; Article 24, Paragraphs 1 or 2 (including those situations applying mutatis mutandis to Paragraph 4 of the same Article) or Paragraph 5 of the same Article (from among those provisions, including those which apply mutatis mutandis to Article 24-2, Paragraph 1, and concerning those corporations so designated as appropriate in view of these provisions by the Minister of Finance (hereinafter "designated corporations") including those situations applying these provisions mutatis mutandis to Article 27 of the Securities Exchange Law (Law No. 25, 1948. Hereinafter referred to as the "Law") shall be based on the determinations of these Chapters I-VI, excluding Article 1-2, and, concerning those matters not provided for in these provisions shall be in accord with accounting standards generally accepted as fair and appropriate.

2. In those situations where the Minister of Finance has especially publicly announced standards of methods of preparation concerning specific items related to financial statements which are to be filed in accordance with the Law, the said standards, as matters corresponding to the provisions of these regulations, shall take priority over the accounting standards generally accepted as fair and appropriate of the previous Paragraph.

Article 1-2 The terminology, forms and methods of preparations of financial statements (excluding mid-term financial statements. Hereinafter the same) filed by foreign companies (meaning the issuer of securities listed in Article 2, Paragaph 1, item 9 of the Law which have the characteristics of securities listed in items 3 to 8 of the same paragraph (hereinafter the same) shall be according to the determinations of Chapter VII.