Notes to Quarterly Consolidated Financial Statements
Changes in Accounting Policies
(Accounting Standard for
Fair Value Measurement and Others)
MHFG has applied Accounting Standard for Fair Value Measurement (ASBJ Statement No.30 July 4, 2019)
and others from the beginning of the first quarter ended June 30, 2020.
In accordance with Article 8 of Accounting Standard for Fair Value
Measurement, the fair value adjustment method used to determine the fair value of derivatives is revised to maximize the use of relevant observable inputs estimated from derivatives and others traded in the market.
In accordance with Article 20 of Accounting Standard for Fair Value Measurement, the cumulative effects arising from the retroactive application
of these new accounting policies to all the previous fiscal years were reflected in Retained Earnings as of April 1, 2020.
As a result, Retained
Earnings decreased by ¥32,639 million, Trading Assets decreased by ¥50,380 million, Derivatives other than for Trading Assets decreased by ¥6,379 million, Trading Liabilities decreased by ¥6,529 million,
Derivatives other than for Trading Liabilities decreased by ¥3,184 million, Deferred Tax Assets increased by ¥14,405 million, and Net Assets per Share decreased by ¥12.87 as of April 1, 2020. The share consolidation was
taken place at a ratio of ten pre-consolidation shares to one post-consolidation share on October 1, 2020. Net Asset per share is calculated under the assumption that the share consolidation had been
taken place at the beginning of fiscal 2019.
And in accordance with the transitional treatment set forth in Article 19 of Accounting Standard for
Fair Value Measurement and Article 44-2 of Accounting Standard for Financial Instruments (ASBJ Statement No. 10, July 4, 2019), MHFG has applied a new accounting policy prescribed
by Accounting Standard for Fair Value Measurement and others from the first quarter ended June 30, 2020.
As a result, in principle,
while fair value of Japanese stocks was previously determined based on the average quoted market price over the month preceding the quarterly consolidated balance sheet date, from the first quarter ended June 30, 2020, fair value of Japanese
stocks is determined based on the quoted market price as of the quarterly consolidated balance sheet date.
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