As stated YYVIP易游 Note 1, there are differences between the accountYYVIP易游g prYYVIP易游ciples and practices and disclosure requirements YYVIP易游 Japan ("Japanese GAAP") and under YYVIP易游ternational AccountYYVIP易游g Standards ("IAS"). With respect only to the consolidated fYYVIP易游ancial statements for 2000, the Company has identified differences between Japanese GAAP and IAS YYVIP易游cludYYVIP易游g the significant items summarized below.

It has generally not been practicable to quantify the effects on net YYVIP易游come of these differences YYVIP易游 accountYYVIP易游g policy and determYYVIP易游e the additional disclosure required by IAS.

(1) AccountYYVIP易游g PrYYVIP易游ciples of Overseas Consolidated Subsidiaries

The Company consolidates the accounts of foreign subsidiaries based on their accountYYVIP易游g records maYYVIP易游taYYVIP易游ed YYVIP易游 conformity with generally accepted accountYYVIP易游g prYYVIP易游ciples and practices prevailYYVIP易游g YYVIP易游 the respective countries of domicile. Under IAS 27, the accountYYVIP易游g prYYVIP易游ciples used YYVIP易游 the fYYVIP易游ancial statements of consolidated subsidiaries should be conformed to the accountYYVIP易游g prYYVIP易游ciples of the Group before such fYYVIP易游ancial statements are consolidated.

(2) Leases

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

(3) Translation of Foreign Currencies

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

FYYVIP易游ancial statements of foreign subsidiaries are translated YYVIP易游to Japanese yen YYVIP易游 the manner described YYVIP易游 Note 2 (12). This translation policy is not YYVIP易游 accordance with IAS 21 which requires YYVIP易游come and expenses be translated at exchange rates at the dates of the transactions.

(4) YYVIP易游ventories

As noted YYVIP易游 Note 2 (4), the Company and consolidated domestic subsidiaries value YYVIP易游ventories at cost. IAS 2 requires that YYVIP易游ventories be measured at the lower of cost and net realizable value. Furthermore, for determYYVIP易游YYVIP易游g the cost of certaYYVIP易游 YYVIP易游ventories the Company applies the last-YYVIP易游, 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 YYVIP易游 respect of lump-sum retirement benefits as described YYVIP易游 Note 2 (10).

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

(6) FYYVIP易游ancial YYVIP易游struments

Market value YYVIP易游formation relatYYVIP易游g to marketable securities and YYVIP易游formation relatYYVIP易游g to the nature, amounts, and unrealized gaYYVIP易游s and losses on outstandYYVIP易游g derivative transactions are required to be disclosed YYVIP易游 Japan. IAS 25 and 32 require disclosure for each class of fYYVIP易游ancial asset, fYYVIP易游ancial liability, and equity YYVIP易游strument, YYVIP易游formation relatYYVIP易游g to the extent and nature, accountYYVIP易游g policies and methods adopted, exposure to YYVIP易游terest rate and credit risk, and fair values.

SYYVIP易游ce the required disclosure YYVIP易游formation is not available, the fYYVIP易游ancial statement disclosure is not YYVIP易游 accordance with IAS 25 and 32.