Form 6-K MIZUHO FINANCIAL GROUP To: November 29
Intercompany interest rate swaps, currency swaps and similar derivatives between consolidated companies or between trading accounts and other accounts, which are designated as hedges, are not eliminated, and the related gains and losses are recognized in the income statement or deferred in hedge accounting, because these intercompany derivatives are executed according to the criteria of appropriate hedging operations from external third parties which are objectively treated as hedging operations in accordance with practical guidelines n ° 24 and 25 of the committee industry of JICPA.
As with certain assets and liabilities of MHFG and its consolidated subsidiaries, the deferred method, the fair value hedging method or the exceptional accrual method of accounting for interest rate swaps are applied.
Which hedging relationships apply ?? Treatment of hedge accounting for financial instruments referring to LIBOR ??
Among items (a) to (c) above, all hedging relationships included within the scope of ?? Treatment of hedge accounting for financial instruments referring to LIBOR ?? (ASBJ Solutions Pratiques n ° 40, September 29, 2020) are subject to this exceptional treatment. The details of the hedging relationships that apply the processing are as follows.
Hedging method: the deferred method, the fair value hedging method or the exceptional accrual method of accounting
Hedging instruments: interest rate swaps, currency swap transactions or foreign exchange swap transactions, etc.
Hedged instruments: financial assets and liabilities, financial assets and liabilities denominated in foreign currencies, etc.
The variety of hedging operations: to offset the risks of market fluctuations, to fix cash flows
Scope of cash and cash equivalents in the interim consolidated statements of cash flows
In the interim consolidated statements of cash flows, cash and cash equivalents consist of cash and amounts owed by central banks included in “cash and cash equivalents”? in the interim consolidated balance sheet.
Adoption of the consolidated tax system
MHFG and certain consolidated national subsidiaries of the Group have applied the consolidated tax system since the start of the interim period ending September 30, 2021.
Changes in accounting policies
(Accounting standard for revenue recognition and others)
MHFG applied ?? Accounting standard for revenue recognition ?? (ASBJ Statement No.29, March 31, 2020) and others since the start of the interim period ended September 30, 2021.
In accordance with the “Accounting standard for revenue recognition?” », MHFG recognizes income at the time of transfer of the goods or services promised to the customer for an amount which reflects the consideration to which MHFG expects to be entitled in exchange for these goods or services.
In accordance with the transitional treatment provided for by the restrictive clause of article 84 of the “Accounting standard for the recognition of income” ?, the cumulative effects resulting from the retroactive application of these new accounting methods to all previous years have been reflected in retained earnings from April 1, 2021 and the new accounting policies are applied from the start of the financial year.
Due to the cumulative effects resulting from the retroactive application of these new accounting policies, the retained earnings of the interim consolidated statement of changes in net assets decreased by € 724 million as of April 1, 2021. The impact on the interim consolidated balance sheet, the interim consolidated statement of income, the interim consolidated statement of cash flows and the information per share for the interim period ended September 30, 2021 are not material.
And in accordance with the transitional treatment provided for in article 89-3 of ?? Accounting standard for revenue recognition ??, the comparative period is not noted in ??Revenue recognition??.
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