[ Comparison of Financial Results between U.S. GAAP and Japanese GAAP ] Note: 1. Accounting for commissions paid to agents, "Accounting for Consideration Given by a Vendor to a Customer or a Reseller of the Vendor's Products" (EITF01-09) Commissions paid to sales agents are recognized as "operating expenses" as incurred under Japanese GAAP. Under U.S. GAAP, such expenses are presumed to be a reduction of equipment sales and the amount paid to the agents is reclassified as the reduction of equipment sales. 2. Classification of Extraordinary Losses Extraordinary losses under Japanese GAAP are registered as "operating expenses," "other expenses, net," or "equity in net losses of affiliates" under U.S. GAAP. 3. Accounting for Leases Accounting for leases is based on FASB Statement of Financial Accounting Standards No. 13. Copyright (c) 2003 Nippon telegraph and telephone corporation