5. CONSOLIDATED FINANCIAL STATEMENTS (7) Retroactive application of equity method for an investee Subsequent to the six months ended September 30, 2007, NTT Group acquired an additional equity interest in a company that gives the NTT Group the ability to exercise significant influence over the investee. NTT Group's equity interest was previously accounted for "Marketable securities and other investments" in the consolidated balance sheet. As a result of this acquisition of additional equity interest, the equity method of accounting was applied retroactively by the NTT Group in accordance with APB No.18 "The Equity Method of Accounting for Investment in Common Stock." Consequently, the previously reported amounts have been revised in NTT Group's consolidated results of operations. The impact on the items of consolidated results of operations in the six months ended September 30, 2007 are as follows: Copyright (c) 2008 Nippon telegraph and telephone corporation