Toyota 2008 Annual Report Download - page 89

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•Annual Report 2008 • TOYOTA
Performance Messages from the Management &
•Overview •Management •Special Feature •Business Overview •Corporate Information •Financial Section •Investor Information •
Toyota does not have any significant related party transactions
other than transactions with affiliated companies in the ordinary
course of business as described in note 12 to the consolidated
financial statements.
In October 2000, the European Union enforced a directive that
requires member states to promulgate regulations implementing
the following:
• manufacturers shall bear all or a significant part of the costs
for taking back end-of-life vehicles put on the market after
July 1, 2002 and dismantling and recycling those vehicles.
Beginning January 1, 2007, this requirement will also be
applicable to vehicles put on the market before July 1, 2002;
• manufacturers may not use certain hazardous materials in
vehicles sold after July 2003;
• vehicles type-approved and put on the market after December
15, 2008 shall be re-usable and/or recyclable to a minimum
of 85% by weight per vehicle and shall be re-usable and/or
recoverable to a minimum of 95% by weight per vehicle; and
• end-of-life vehicles must meet actual re-use of 80% and re-use
as material or energy of 85%, respectively, of vehicle weight
by 2006, rising to 85% and 95%, respectively, by 2015.
See note 23 to the consolidated financial statements for fur-
ther discussion.
In September 2006, FASB issued FAS No. 157, Fair Value
Measurements
(“FAS 157”), which defines fair value, establishes
a framework for measuring fair value and expands disclosures
about fair value measurements. FAS 157 is effective for financial
statements issued for fiscal year beginning after November 15,
2007. Management does not expect this Statement to have a
material impact on Toyota’s consolidated financial statements.
In September 2006, FASB issued FAS No. 158, Employers’
Accounting for Defined Benefit Pension and Other
Postretirement Plans—an amendment of FASB Statements No.
87, 88, 106, and 132(R)
( “FAS 158” ). FAS 158 requires employers
to measure the funded status of their defined benefit postre-
tirement plans as of the date of their year-end statement of
financial position. This provision in FAS 158 regarding a mea-
surement date is effective for fiscal year ending after December
15, 2008. Management does not expect this provision to have a
material impact on Toyota’s consolidated financial statements.
In February 2007, FASB issued FAS No. 159, The Fair Value
Option for Financial Assets and Financial Liabilities—Including
an amendment of FASB Statement No. 115
(“FAS 159”). FAS
159 permits entities to measure many financial instruments and
certain other assets and liabilities at fair value on an instrument-
by-instrument basis and subsequent change in fair value must
be recorded in earnings at each reporting date. FAS 159 is
effective for fiscal year beginning after November 15, 2007.
Management is evaluating the impact of adopting FAS 159 on
Toyota’s consolidated financial statements.
Recent Accounting Pronouncements in the United States
Legislation Regarding End-of-Life Vehicles
Related Party Transactions
Toyota is unable to make reasonable estimates of the period of cash settlement, and accordingly liabilities recognized for uncertain
tax benefits are excluded from the table above. See note 16 to the consolidated financial statements regarding the income taxes.
Toyota expects to contribute ¥153,030 million to its pension plans in fiscal 2009.
Yen in millions
Total Amount of Commitment Expiration Per Period
Amounts
Committed Less than 1 year 1 to 3 years 3 to 5 years 5 years and after
Commercial Commitments:
Maximum potential exposure to guarantees given
in the ordinary course of business (note 23) .................................. ¥1,460,362 ¥439,974 ¥667,914 ¥273,575 ¥78,899
Total Commercial Commitments.................................................. ¥1,460,362 ¥439,974 ¥667,914 ¥273,575 ¥78,899
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