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

Article 5 (Standards for the Preparation Methods of Indication of Financial Statements) The terminology, forms and methods of preparing financial statements which are to be filed based on the provisions of the Law must conform to the standards listed hereunder.

(i) A true disclosure of the substance of the financial conditions and the operating results of the said company (including designated corporations, hereinafter the same).

(ii) The clear disclosure of necessary accounting facts to interested parties at the said company in order that mistaken judgments not be made concerning those financial and operation conditions.

(iii) The principles and procedures of accounting dispositions which the said company adopted, shall be utilized continuously through each term in which the financial statements are made, excluding those situations where changes are made for suitable reasons.

2. Concerning consistency in the contents of items which are to be entered in financial statements, excluding those situations where there are changes for appropriate reasons, a consistent method of indication must be adopted through each accounting period in the preparation of financial statements.