Sony Group Corporation · TSE:6758
Sony — Corporate Update (April 2021)
8 slides from Sony's corporate update, Apr 28, 2021
Slide 1: Effects of Transition to International Financial Reporting Standards (IFRS)
Effects of Transition to International Financial Reporting Standards (IFRS) Sony Corporation February 3, 2021 (Note) This reference material is to provide investors with an understanding of Sony’s IFRS-based results forecast for the fiscal year ending March 31, 2022, by reprinting the material relea
Slide 2: Notes Regarding the Material
As announced in the “Notice Regarding Voluntary Adoption of International Financial Reporting Standards (IFRS)” dated February 3, 2021, Sony has decided to voluntarily adopt IFRS beginning in the fiscal year starting April 1, 2021 in lieu of the currently applied generally accepted accounting princi
Slide 3: Major Impacts on IFRS Balance Sheet as of April 1, 2020, Transition Date
Decrease in deferred acquisition costs related to the above change -413.0 Increase in investments due to a change in the measurement method of debt securities at Sony Life Insurance Co., Ltd. (“Sony Life”) +2,433.7 Assets · The numbers (1) to (4) above correspond to the numbers of the items describe
Slide 4: Balance Sheets: Debt securities and goodwill impairment testing units
Item U.S. GAAP IFRS Detail (1) Measurement method for debt securities such as bonds held by Sony Life Amortized cost measurement Fair value measurement(“FVOCI”)*1 Expected to adopt fair value measurement method for debt securities held for ALM*2 purposes in accordance with classification requirement
Slide 5: Balance Sheets: Translation adjustments and defined benefit remeasurements
Item U.S. GAAP IFRS Detail (3) Translation adjustments on foreign operations ― Optionally able to elect the cumulative translation adjustments balance to be zero at the transition date Expected to elect cumulative translation adjustments to be zero at the transition date and to transfer it from accu
Slide 6: Balance Sheets: U.S. GAAP vs IFRS notes
U.S. GAAP IFRS *1 Until FY2023, when IFRS 17 “Insurance Contracts” becomes effective for Sony Life, which is included in the Financial Services segment, the asset side is measured at fair value based on IFRS 9 “Financial Instruments” by being recorded through accumulated other comprehensive income o
Slide 7: Profit or Loss
Item U.S. GAAP IFRS Detail Impacts on sales and operating income Financial services revenue and expenses Changes in classification and measurement method for financial instruments held in the Financial Services segment: E.g., changes in measurement method for certain debt securities held by Sony Ban
Slide 8: Cash Flow
Item U.S. GAAP IFRS Detail Consolidated Principal payments for operating lease liabilities Operating activities Financing activities Cash flow from operating activities increases compared to U.S. GAAP Purchases and sales of content assets*1 Investing activities*2 Operating activities Cash flow from