Business News

Epson: Impact of Revision to Defined Benefit Plan on Financial Results

Tuesday 24. June 2014 - Seiko Epson Corporation (TSE: 6724, "Epson") has determined the impact of the revision to its defined benefit plan on its financial results for the year ending March 2015.

The revision was announced on April 3, 2014, but Epson was unable to disclose the appropriate figures at that time because they were still being calculated.
1. Results of calculation
As a result of this revision, Epson forecasts a 30,071 million yen decline in expenses associated with past service costs at Epson and certain domestic subsidiaries. Under IFRS (International Financial Reporting Standards), this will translate to a 30,071 million yen increase in other operating income for the first quarter of the fiscal year ending March 2015.
Note that in the nonconsolidated results (under Japanese accounting standards), a 25,705 million yen decline in expenses associated with past service costs will be amortized over a certain years (five years) within the average remaining period until retirement under the straight-line method. Epson will book this as a reduction of current service costs from the first quarter of the fiscal year ending March 2015.
2. Impact on financial results
Epson included the approximate impact of this revision on the financial results for the fiscal year ending March 2015 in its forecast disclosed on April 30, 2014. As a result, Epson does not currently plan to revise its forecast as a result of the abovementioned calculation.?