(ii) Method of presentation of fixed liabilities / 2
(3) Provisions / 3
(i) Scope of provisions / 3
(ii) Method of presenting provisions / 6
4. Net Worth on the Balance Sheet / 6
(1) Capital Stock Section / 6
(i) Composition of capital stock / 6
(ii) The method of presenting capital stock / 9
(2) Legal Reserve Section / 9
(i) The scope of legal reserve / 10
(1) Capital reserve / 10
(2) Revenue reserve / 13
(3) Revaluation reserve,etc. / 13
(ii) Method of presenting legal reserve / 14
(3) Surplus Section or Deficit Section / 14
(i) Scope of surplus or dificit / 14
(1) Profit brought forward from the preceding period or deficit brought forward from the preceding period / 14
(2) Profit or deficit for the period / 15
(3) Voluntary reserves / 16
(ii) Method of presenting surplus or deficit / 16
(iii) Computation of distributable profit and footnotes or deferred assets / 18
Chapter III Income Statement
1. Meaning and Form of Income Statement / 22
(1) Meaning / 22
(2) Form / 24
(3) Division / 24
(i) The first method of division / 24
(ii) The second method of division / 27
2. Revenues and Expenses / 29
(1) Ordinary Profit and Loss Section / 29
(i) Division / 29
(ii) Operating profit and loss / 31
(1) Operating revenues / 31
(2) Operating expenses / 31
(3) Operating profit or operating revenues / 33
(iii) Non-operating profit and loss / 33
(1) Non-operating revenues / 33
(2) Non-operating expenses / 34
(iv) Ordinary profit or loss / 37
(2) Extraordinary Profit and Loss Section / 38
(i) Division / 38
(ii) Volunatry reserve used / 39
(iii) Provision used otherwise than its purpose / 39
(iv) Ad judtments to the profit and loss of the preceding period and other extraordinary profits and losses / 40
Chapter IV Miscellaneous Rules
1. Announcement of Balance Sheet / 42
(A) Under the Commercial Code Regulation / 43
(1) Matters concerning deviation from the principle of consistency / 43
(2) Matters concerning the form of entry / 44
(3) Matters concerning the principle of materiality(matters to be mentioned as footnotes invariably) / 45
(B)
2. Balance Sheet and Income Statement of Smaller Corporations / 47
(A) Under the Commercial Code Regulation / 48
(1) Matters concerning deviation from the principle of consistency / 48
(2) Matters concerning the principle of materiality / 48
(B)
Comparative Table of Item Classification under the Commercial Code Regulation and the Finanical Statements Regulation
Balance Sheet / 50
1. Major Division / 50
2. Division of Assets / 51
3. Division of Liabilities / 52
4. Division of net Worth / 54
Income Statement / 56
Example of Balance Sheet and Income Statement / 60
Appendix
How to Prepare Accounting Documents under the Commercial Code as Against the Preparation of Financial Statements under the Securities and Exchange Law--Their Technical Aspects / A1
