Sony 1998 Annual Report Download - page 59

Annual Report 1998 Sony Corporation [57]
Recent pronouncements
In June 1997, the FASB issued FAS 130, “Reporting Comprehensive Income”. This standard requires additional dis-
closures in the financial statements for periods beginning after December 15, 1997, and will have no effect on the
company’s financial position or results of operations.
In March 1998, the American Institute of Certified Public Accountants issued Statement of Position (SOP) 98-1,
“Accounting for the Costs of Computer Software Developed or Obtained for Internal Use”. This SOP, which is effective
for financial statements for fiscal years beginning after December 15, 1998, provides guidance on accounting for the
costs of computer software developed or obtained solely to meet the company’s internal needs. At this stage, it is not
possible to estimate the impact of adoption on the company’s financial position or results of operations.
Reclassifications
Certain reclassifications of the financial statements and related footnote amounts in the years ended March 31, 1996
and 1997 have been made to conform to the presentation in the year ended March 31, 1998.
3. U.S. dollar amounts
U.S. dollar amounts presented in the financial statements are included solely for the convenience of the reader.
These translations should not be construed as representations that the yen amounts actually represent, or have been
or could be converted into U.S. dollars. As the amounts shown in U.S. dollars are for convenience only, the rate of
¥132 = U.S. $1, the approximate current rate at March 31, 1998, has been used for the purpose of presentation of
the U.S. dollar amounts in the accompanying consolidated financial statements.
4. Reconciliation of the differences between basic and diluted net income per share (EPS)
Reconciliation of the differences between basic and diluted EPS for the years ended March 31, 1996, 1997 and 1998
is as follows:
Yen in millions Thousands of shares Yen
Weighted-average
Income shares EPS
For the year ended March 31, 1996
Basic EPS
Net income available to common stockholders . . . . . . ¥ 54,252 373,999 ¥145.1
Effect of Dilutive Securities
Warrants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Convertible bonds. . . . . . . . . . . . . . . . . . . . . . . . . . 2,305 47,976
Diluted EPS
Net income for computation. . . . . . . . . . . . . . . . . . . ¥ 56,557 421,990 ¥134.0
For the year ended March 31, 1997
Basic EPS
Net income available to common stockholders . . . . . . ¥139,460 379,230 ¥367.7
Effect of Dilutive Securities
Warrants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
Convertible bonds. . . . . . . . . . . . . . . . . . . . . . . . . . 2,455 79,729
Diluted EPS
Net income for computation. . . . . . . . . . . . . . . . . . . ¥141,915 459,028 ¥309.2
Yen in millions Thousands of shares Yen Dollars
Weighted-average
Income shares EPS
For the year ended March 31, 1998
Basic EPS
Net income available to common stockholders . . . . . . ¥222,068 398,181 ¥557.7 $4.23
Effect of Dilutive Securities
Warrants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
Convertible bonds. . . . . . . . . . . . . . . . . . . . . . . . . . 2,271 65,890
Diluted EPS
Net income for computation. . . . . . . . . . . . . . . . . . . ¥224,339 464,122 ¥483.4 $3.66