text: See Note 2(b) for adoption of a new accounting standard by a 
  consolidated subsidiary in the United Kingdom. 
  
  (d) Cash equivalents 
  All highly liquid investments with maturity of three months or less 
  when purchased are considered cash equivalents. 
  
  (j) Income taxes 
  Deferred tax assets and liabilities have been recognized in the 
  consolidated financial statements with respect to the differences 
  between financial reporting and the tax bases of the assets and 
  liabilities, and were measured using the enacted tax rates and laws 
  which will be in effect when the differences are expected to reverse. 
  (e) Inventories 
  Inventories are stated principally at the lower of cost or market, cost 
  being determined principally by the first-in, first-out method. See Note 
  2 (a). 
  
  (k) Research and development costs 
  Research and development costs are charged to income when 
  incurred. 
  
  (n) Appropriation of retained earnings 
  Under the Commercial Code of Japan, the appropriation of retained 
  earnings with respect to a given financial year is made by resolution 
  of the shareholders at a general meeting held subsequent to the 
  close of such financial year. The accounts for that year do not, 
  therefore, reflect such appropriations. See Note 22. 
  (l) Revenue recognition 
  Revenue is generally recognized on sales of products at the time of 
  shipment. 
  
  (o) New Accounting Standards 
  A new Japanese accounting standard “Impairment of Fixed Assets” 
  was issued in August 2002 that is effective for fiscal years beginning 
  on or after April 1, 2005. The new standard requires that tangible and 
  intangible fixed assets be carried at cost less depreciation, and be 
  reviewed 
  in 
  circumstances indicate that the carrying amount of an asset may not 
  be recoverable. Companies would be required to recognize an 
  impairment loss in their income statement if certain indicators of 
  asset impairment exist and the book value of an asset exceeds the 
  undiscounted sum of future cash flows of the asset. The Company is 
  currently assessing the impact of this new accounting standard on its 
  financial position and operating results.  (m) Derivative financial instruments 
  The Company and certain consolidated subsidiaries have entered into 
  various derivative transactions in order to manage certain risks arising 
  from adverse fluctuations in foreign currency exchange rates, interest 
  rates, and stock and commodity prices. Derivative 
  financial 
  instruments are carried at fair value with changes in unrealized gain 
  or loss charged or credited to operations, except for those which 
  meet the criteria for deferral hedge accounting under which 
  unrealized gain or loss is deferred as an asset or a liability. 
  Receivables and payables hedged by qualified forward foreign 
  exchange contracts are translated at the corresponding foreign 
  exchange contract rates. 
  
  for  impairment whenever events or changes 
  
  2. ACCOUNTING CHANGES 