Notes to Quarterly Consolidated Financial Statements
Changes in Accounting Policies
(Accounting Standard for Revenue Recognition and Others)
MHFG has applied Accounting Standard for Revenue Recognition (ASBJ Statement No.29, March 31, 2020) and others from the beginning of the first
quarter ended June 30, 2021.
In accordance with Accounting Standard for Revenue Recognition, MHFG recognizes revenue at the time of the
transfer of promised goods or services to the customer in an amount that reflects the consideration to which MHFG expects to be entitled in exchange for those goods or services.
In accordance with transitional treatment set out in the proviso of Article 84 of Accounting Standard for Revenue Recognition, 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, 2021, and the new accounting policies are applied from the beginning of the
fiscal year.
As a result, Retained Earnings decreased by ¥724 million as of April 1, 2021. The impact on the quarterly consolidated
statement of income for the fiscal quarter ended June 30, 2021 is immaterial.
In accordance with transitional treatment set out in the Article 28-15 of Accounting Standard for Quarterly Financial Reporting and its Implementation Guidance (ASBJ Statement No.12, March 31, 2020), the breakdown of revenue from contracts with customers in the
previous first quarter consolidated cumulative period is not presented.
Additional Information
The Board Benefit Trust (BBT) Program
Since
MHFG operates its business to contribute to the creation of value for diverse stakeholders and realize improved corporate value through the continuous and stable growth of MHFG group pursuant to MHFGs basic management policy defined under the
Mizuho Financial Groups Corporate Identity, MHFG has introduced a stock compensation program using a trust (the Program) that functions as an incentive for each Director and Executive Officer to exert maximum effort in performing
his or her duties, and also as consideration for such exertion of effort.
(1)
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Outline of the Program
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The Program has adopted the Board Benefit Trust (BBT) framework. MHFGs shares on the stock market will be acquired through a
trust established based on the underlying funds contributed by MHFG, and MHFGs shares will be distributed to Directors and Executive Officers of MHFG, Mizuho Bank, Ltd., Mizuho Trust & Banking Co., Ltd., and Mizuho Securities Co.,
Ltd. (the Company Group) in accordance with the Rules on Distribution of Shares to be prescribed in advance. The framework consists of the stock compensation program based on the Company Group Officers position in their respective
company (Stock Compensation I) and the stock compensation program based on the performance evaluation of the Company Group (Stock Compensation II).
Stock Compensation I will be paid at the time of retirement in the form of shares of MHFG calculated based on their position. A system is
adopted which enables a decrease or forfeiture of the amount depending on the performance of the company or the individual.
Stock
Compensation II will be paid in the form of shares of MHFG and will be deferred over three years, which is calculated based on the status of achieving our Five-Year Business Plan. A system is adopted which enables a decrease or forfeiture of the
amount depending on the performance of the company or the individual.
Upon the payment of stock compensation under the Program, MHFG may,
for a certain portion, pay a monetary amount equivalent to the market value of its stock in lieu of stock compensation in accordance with the Rules on Distribution of Shares.
Voting rights related to MHFGs shares belonging to the trust assets under the trust shall not be exercised.
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