As stated in Note 1, there are differences between the accounting principles and practices and disclosure requirements in Japan ("Japanese GAAP") and under International Accounting Standards ("IAS"). With respect only to the consolidated financial statements for 2000, the Company has identified differences between Japanese GAAP and IAS including the significant items summarized below.

  It has generally not been practicable to quantify the effects on net income of these differences in accounting policy and determine the additional disclosure required by IAS.

(1) Accounting Principles of Overseas Consolidated Subsidiaries

The Company consolidates the accounts of foreign subsidiaries based on their accounting records maintained in conformity with generally accepted accounting principles and practices prevailing in the respective countries of domicile. Under IAS 27, the accounting principles used in the financial statements of consolidated subsidiaries should be conformed to the accounting principles of the Group before such financial statements are consolidated.

(2) Leases

IAS 17 requires that finance leases be reflected in the lessee's accounts by recording an asset and liability equal to the lower of the net fair value of the leased property and the present value of the minimum lease payments. The asset should be depreciated and rentals apportioned between finance charges and reduction of the outstanding liability. As described in Note 2 (13), in Japan, finance leases may be accounted for in the same manner as operating leases. For the years ended March 31, 2000 and 1999, the Company had no finance leases that were required to be capitalized.

(3) Translation of Foreign Currencies

As described in Note 2 (12), assets and liabilities denominated in foreign currencies are translated at historical exchange rates. This is not in accordance with IAS 21 which requires foreign currency monetary items to be translated at the rate of exchange in effect at each balance sheet date.

  Financial statements of foreign subsidiaries are translated into Japanese yen in the manner described in Note 2 (12). This translation policy is not in accordance with IAS 21 which requires income and expenses be translated at exchange rates at the dates of the transactions.

(4) Inventories

As noted in Note 2 (4), the Company and consolidated domestic subsidiaries value inventories at cost. IAS 2 requires that inventories be measured at the lower of cost and net realizable value. Furthermore, for determining the cost of certain inventories the Company applies the last-in, first-out (LIFO) method which is an allowed alternative treatment under IAS 2 for which additional disclosure is required.

(5) Employees' Retirement Benefits

The Company and its domestic consolidated subsidiaries provide for the liability in respect of lump-sum retirement benefits as described in Note 2 (10).

  Under IAS 19, pension costs are recognized and computed using a particular actuarial approach known as the accrued benefit valuation method or, alternatively, the projected benefit valuation method.

(6) Financial Instruments

Market value information relating to marketable securities and information relating to the nature, amounts, and unrealized gains and losses on outstanding derivative transactions are required to be disclosed in Japan. IAS 25 and 32 require disclosure for each class of financial asset, financial liability, and equity instrument, information relating to the extent and nature, accounting policies and methods adopted, exposure to interest rate and credit risk, and fair values.

  Since the required disclosure information is not available, the financial statement disclosure is not in accordance with IAS 25 and 32.