Mitsubishi UFJ Financial Group, Inc.
(4) Notes on Going-Concern Assumption
None.
(5) Changes in Accounting Policies
(Accounting Standard for Revenue Recognition)
Accounting Standard Board of Japan (ASBJ) Statement No. 29, Accounting Standard for Revenue
Recognition (ASBJ, March 30, 2018), and ASBJ Guidance No. 30, Implementation Guidance on Accounting Standard for Revenue Recognition (ASBJ, March 30, 2018), are applied from the beginning of the six months ended September 30,
2021. Under these accounting standards, revenue is recognized in an amount expected to be received in exchange for goods or services when control of promised goods or services is transferred to a customer. A primary change resulting from the
application of these accounting standards relates to revenue from annual membership fees recorded as income from the credit card business. Such revenue was previously recognized when received from customers but is currently recognized over the
period in which the services are provided.
In accordance with the transitional measures set forth in the proviso in
paragraph 84 of the Accounting Standard for Revenue Recognition, the cumulative effect of retroactively applying the new accounting policy to reporting periods prior to the beginning of the six months ended September 30, 2021 was recognized as
adjustments to retained earnings at the beginning of the six months ended September 30, 2021, and the new accounting policy is applied from the beginning of the six months ended September 30, 2021 as a change in MUFGs accounting policies.
However, due to application of the method set forth in paragraph 86 of the Accounting Standard for Revenue Recognition, the new accounting policy was not retroactively applied to a contract for which substantially all of the revenue had been
recognized in accordance with the previous accounting treatment prior to the beginning of the six months ended September 30, 2021.
As a result, at the beginning of the six months ended September 30, 2021, retained earnings decreased by
¥6,617 million. The impact on each of fees and commissions income, ordinary profits, profits before income taxes and per share information for the six months ended September 30, 2021 is not significant.
In accordance with the transitional measures set forth in paragraph 89-3 of the Accounting Standard for Revenue Recognition,
information on breakdowns of revenues from contracts with customers for the six months ended September 30, 2020 is not disclosed.
(6) Changes in
Presentation of Financial Information
From the beginning of the six months ended September 30, 2021, expenses related
to credit cards, which were previously recorded as general and administrative expenses, are recorded as fees and commissions expenses.
This reflects the change made in the presentation of expenses corresponding to income related to credit cards, which is
recorded as fees and commissions income, as a result of a review of fees and commissions income that was conducted in connection with the adoption of ASBJ Statement No. 29, Accounting Standard for Revenue Recognition and ASBJ
Guidance No. 30, Implementation Guidance on Accounting Standard for Revenue Recognition from the beginning of the six months ended September 30, 2021, to disclose financial information in a manner that more closely reflects the
actual economic situation.
In order to reflect this change in the presentation of the financial information, the
consolidated financial statements for the six months ended September 30, 2020, have been retroactively restated.
As a
result, fees and commissions expenses of ¥107,688 million and general and administrative expenses of ¥1,374,768 million previously presented in the consolidated statement of income for the six months ended September 30, 2020 have
been restated, resulting in the current presentation of fees and commissions expenses of ¥142,852 million and general and administrative expenses of ¥1,339,604 million.
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