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1、Financial ReportFINANCIAL REPORT 2024SoftBank Group Corp.a.Consolidated Statement of Financial PositionASSETS(Millions of yen)(Thousands of U.S.dollars)NotesAs of March 31,2023As of March 31,2024As of March 31,2024Current assetsCash and cash equivalents.8 6,925,153 6,186,874$40,861,726Trade and othe

2、r receivables.9,282,594,7362,868,76718,947,011Derivative financial assets.28249,414852,3505,629,417Other financial assets .10,28371,313777,9965,138,340Inventories .11163,781161,8631,069,038Other current assets.12282,085550,9843,639,020Subtotal.10,586,48211,398,83475,284,552Assets classified as held

3、for sale.1342,559281,084Total current assets.10,586,48211,441,39375,565,636Non-current assetsProperty,plant and equipment .141,781,1421,895,28912,517,595Right-of-use assets.15858,577746,9034,932,983Goodwill.165,199,4805,709,87437,711,340Intangible assets.162,409,6412,448,84016,173,568Costs to obtain

4、 contracts.332,856317,6502,097,946Investments accounted for using the equity method.19730,440839,2085,542,619Investments from SVF(FVTPL).2810,489,72211,014,48772,746,100Investment securities.287,706,5019,061,97259,850,551Derivative financial assets.281,170,845385,5282,546,252Other financial assets .

5、10,282,303,6202,424,28216,011,373Deferred tax assets.21210,823245,9541,624,424Other non-current assets.12156,239192,8631,273,781Total non-current assets.33,349,88635,282,850233,028,532Total assets 43,936,36846,724,243$308,594,168Consolidated Financial StatementsSoftBank Group Corp.Financial Report 2

6、0241LIABILITIES AND EQUITY(Millions of yen)(Thousands of U.S.dollars)NotesAs of March 31,2023As of March 31,2024As of March 31,2024Current liabilitiesInterest-bearing debt.22,28 5,129,047 8,271,143$54,627,455Lease liabilities.17,28184,105149,801989,373Deposits for banking business.23,281,472,2601,64

7、3,15510,852,355Trade and other payables.24,282,416,8722,710,52917,901,915Derivative financial liabilities.2882,612195,0901,288,488Other financial liabilities .25,28180,19131,801210,032Income taxes payable.367,367163,2261,078,040Provisions.2772,35044,704295,251Other current liabilities.26675,920801,2

8、855,292,155Subtotal.10,580,72414,010,73492,535,064Liabilities directly relating to assets classified as held for sale.139,56163,146Total current liabilities.10,580,72414,020,29592,598,210Non-current liabilitiesInterest-bearing debt.22,2814,349,14712,296,38181,212,476Lease liabilities.17,28652,892644

9、,7064,258,015Third-party interests in SVF.7,284,499,3694,694,50331,005,237Derivative financial liabilities.28899,35141,238272,360Other financial liabilities .25,2858,54557,017376,574Provisions.27163,627167,9021,108,923Deferred tax liabilities.211,828,5571,253,0398,275,801Other non-current liabilitie

10、s.26254,941311,9932,060,583Total non-current liabilities.22,706,42919,466,779128,569,969Total liabilities 33,287,153 33,487,074$221,168,179SoftBank Group Corp.Financial Report 20242LIABILITIES AND EQUITY(Millions of yen)(Thousands of U.S.dollars)NotesAs of March 31,2023As of March 31,2024As of March

11、 31,2024EquityEquity attributable to owners of the parentCommon stock.33 238,772 238,772$1,576,990Capital surplus .332,652,7903,326,09321,967,459Other equity instruments.33414,055193,1991,275,999Retained earnings.332,006,2381,632,96610,785,060Treasury stock.33(38,791)(22,725)(150,089)Accumulated oth

12、er comprehensive income.333,756,7855,793,82038,265,769Total equity attributable to owners of the parent.9,029,84911,162,12573,721,188Non-controlling interests 18,331,619,3662,075,04413,704,801Total equity 10,649,21513,237,16987,425,989Total liabilities and equity 43,936,36846,724,243$308,594,168Soft

13、Bank Group Corp.Financial Report 20243b.Consolidated Statement of Profit or Loss and Consolidated Statement of Comprehensive IncomeConsolidated Statement of Profit or Loss(Millions of yen)(Thousands of U.S.dollars)NotesFiscal year endedMarch 31,2023Fiscal year ended March 31,2024Fiscal year ended Ma

14、rch 31,2024Net sales 36 6,570,439 6,756,500$44,623,869Cost of sales.37(3,242,397)(3,214,108)(21,227,845)Gross profit 3,328,0423,542,39223,396,024Gain on investmentsGain(loss)on investments at Investment Business of Holding Companies.384,560,500(459,045)(3,031,801)Loss on investments at SoftBank Visi

15、on Funds.7(5,322,265)(167,290)(1,104,881)Gain(loss)on other investments.(73,294)66,985442,408Total gain on investments (835,059)(559,350)(3,694,274)Selling,general and administrative expenses.37(2,695,328)(2,982,383)(19,697,398)Finance cost.39(555,902)(556,004)(3,672,175)Foreign exchange loss.(772,2

16、70)(703,122)(4,643,828)Loss on equity method investments.(96,677)(38,641)(255,208)Derivative gain(excluding gain(loss)on investments).4054,2561,502,3269,922,238Change in third-party interests in SVF.71,127,949(390,137)(2,576,692)Other gain(loss).41(24,138)242,7201,603,065Income before income tax (46

17、9,127)57,801381,752Income taxes.21(320,674)151,4161,000,039Net income (789,801)209,217$1,381,791 Net income attributable toOwners of the parent.(970,144)(227,646)$(1,503,507)Non-controlling interests.18180,343436,8632,885,298Net income (789,801)209,217$1,381,791SoftBank Group Corp.Financial Report 2

18、0244(Yen)(U.S.dollars)NotesFiscal year endedMarch 31,2023Fiscal year ended March 31,2024Fiscal year ended March 31,2024Earnings per shareBasic earnings per share.43 (652.37)(170.99)$(1.13)Diluted earnings per share.43 (662.41)(174.20)$(1.15)Consolidated Statement of Comprehensive Income(Millions of

19、yen)(Thousands of U.S.dollars)NotesFiscal year endedMarch 31,2023Fiscal year ended March 31,2024Fiscal year ended March 31,2024Net income (789,801)209,217$1,381,791Other comprehensive income,net of tax Items that will not be reclassified to profit or lossRemeasurements of defined benefit plan.423,24

20、0(308)(2,034)Equity financial assets at FVTOCI.426,19410,77771,178Share of other comprehensive income of associates.423563262,152Total items that will not be reclassified to profit or loss .9,79010,79571,296Items that may be reclassified subsequently to profit or lossDebt financial assets at FVTOCI.

21、42(598)(286)(1,889)Cash flow hedges.42(72,791)24,007158,556Exchange differences on translating foreign operations.421,221,2492,000,91613,215,218Share of other comprehensive income of associates.42100,291(3,208)(21,188)Total items that may be reclassified subsequently to profit or loss .1,248,1512,02

22、1,42913,350,697Total other comprehensive income,net of tax 1,257,9412,032,22413,421,993Total comprehensive income 468,1402,241,441$14,803,784Total comprehensive income attributable toOwners of the parent.293,1161,809,984$11,954,191Non-controlling interests.175,024431,4572,849,593Total comprehensive

23、income 468,1402,241,441$14,803,784SoftBank Group Corp.Financial Report 20245c.Consolidated Statement of Changes in Equity(Millions of yen)Equity attributable to owners of the parentFor the fiscal year ended March 31,2023NotesCommon stockCapital surplusOther equity instrumentsRetained earningsTreasur

24、y stockAccumulated other compre-hensive incomeTotalNon-controlling interestsTotal equityAs of April 1,2022 238,7722,634,574496,8764,515,704(406,410)2,496,1589,975,6741,732,08811,707,762Comprehensive incomeNet income.(970,144)(970,144)180,343(789,801)Other comprehensive income.1,263,2601,263,260(5,31

25、9)1,257,941Total comprehensive income (970,144)1,263,260293,116175,024468,140Transactions with owners and other transactionsCash dividends.34(70,327)(70,327)(288,175)(358,502)Distribution to owners of other equity instruments.33(36,680)(36,680)(36,680)Redemption and cancellation of other equity inst

26、ruments.33(82,821)(21,776)(104,597)(104,597)Transfer of accumulated other comprehensive income to retained earnings.2,633(2,633)Purchase and disposal of treasury stock.33(798)(1,044,755)(1,045,553)(1,045,553)Retirement of treasury stock.33(1,412,374)1,412,374Changes from loss of control.(5,248)(5,24

27、8)Changes in interests in subsidiaries.4,8994,89927,72832,627Changes in associates interests in their subsidiaries.(5,845)(5,845)(5,845)Changes in interests in associates capital surplus.21,22321,22321,223Share-based payment transactions .(463)(463)37,11636,653Other.(1,598)(1,598)(59,167)(60,765)Tot

28、al transactions with owners and other transactions 18,216(82,821)(1,539,322)367,619(2,633)(1,238,941)(287,746)(1,526,687)As of March 31,2023 238,7722,652,790414,0552,006,238 (38,791)3,756,7859,029,8491,619,36610,649,215SoftBank Group Corp.Financial Report 20246(Millions of yen)Equity attributable to

29、 owners of the parentFor the fiscal year ended March 31,2024NotesCommon stockCapital surplusOther equity instrumentsRetained earningsTreasury stockAccumulated other compre-hensive incomeTotalNon-controlling interestsTotal equityAs of April 1,2023 238,7722,652,790414,0552,006,238(38,791)3,756,785 9,0

30、29,8491,619,36610,649,215Comprehensive incomeNet income.(227,646)(227,646)436,863209,217Other comprehensive income.2,037,6302,037,630(5,406)2,032,224Total comprehensive income (227,646)2,037,6301,809,984431,4572,241,441Transactions with owners and other transactionsCash dividends.34(64,433)(64,433)(

31、288,296)(352,729)Distribution to owners of other equity instruments.33(25,624)(25,624)(25,624)Redemption and cancellation of other equity instruments.33(740)(220,856)(56,164)(277,760)(277,760)Transfer of accumulated other comprehensive income to retained earnings.595(595)Purchase and disposal of tre

32、asury stock.3374016,06616,80616,806Changes from loss of control.(5,359)(5,359)Changes in interests in subsidiaries.33678,056678,05681,038759,094Issuance of other equity instruments in subsidiaries.33120,000120,000Changes in interests in associates capital surplus.(91)(91)(91)Share-based payment tran

33、sactions .(3,833)(3,833)113,967110,134Other.(829)(829)2,8712,042Total transactions with owners and other transactions 673,303(220,856)(145,626)16,066(595)322,29224,221346,513As of March 31,2024 238,7723,326,093193,1991,632,966(22,725)5,793,82011,162,1252,075,04413,237,169SoftBank Group Corp.Financia

34、l Report 20247(Thousands of U.S.dollars)Equity attributable to owners of the parentNotesCommon stockCapital surplusOther equity instrumentsRetained earningsTreasury stockAccumulated other compre-hensive incomeTotalNon-controlling interestsTotal equityAs of April 1,2023$1,576,990$17,520,573$2,734,661

35、$13,250,366$(256,199)$24,812,001$59,638,392$10,695,239$70,333,631Comprehensive incomeNet income.(1,503,507)(1,503,507)2,885,2981,381,791Other comprehensive income.13,457,69813,457,698(35,705)13,421,993Total comprehensive income (1,503,507)13,457,69811,954,1912,849,59314,803,784Transactions with owne

36、rs and other transactionsCash dividends.34(425,553)(425,553)(1,904,075)(2,329,628)Distribution to owners of other equity instruments.33(169,236)(169,236)(169,236)Redemption and cancellation of other equity instruments.33(4,887)(1,458,662)(370,940)(1,834,489)(1,834,489)Transfer of accumulated other c

37、omprehensive income to retained earnings.3,930(3,930)Purchase and disposal of treasury stock.334,887106,110110,997110,997Changes from loss of control.(35,394)(35,394)Changes in interests in subsidiaries.334,478,2774,478,277535,2225,013,499Issuance of other equity instruments in subsidiaries.33792,55

38、0792,550Changes in interests in associates capital surplus.(601)(601)(601)Share-based payment transactions .(25,315)(25,315)752,704727,389Other.(5,475)(5,475)18,96213,487Total transactions with owners and other transactions 4,446,886(1,458,662)(961,799)106,110(3,930)2,128,605159,9692,288,574As of Ma

39、rch 31,2024$1,576,990$21,967,459$1,275,999$10,785,060$(150,089)$38,265,769$73,721,188$13,704,801$87,425,989SoftBank Group Corp.Financial Report 20248d.Consolidated Statement of Cash Flows(Millions of yen)(Thousands of U.S.dollars)NotesFiscal year endedMarch 31,2023Fiscal year endedMarch 31,2024Fisca

40、l year endedMarch 31,2024Cash flows from operating activitiesNet income.(789,801)209,217$1,381,791Depreciation and amortization.893,488858,6205,670,828(Gain)loss on investments at Investment Business of Holding Companies .(4,638,430)449,8172,970,854Loss on investments at SoftBank Vision Funds.5,322,

41、265167,2901,104,881Finance cost.555,902556,0043,672,175Foreign exchange loss.772,270703,1224,643,828Loss on equity method investments.96,67738,641255,208Derivative gain(excluding(gain)loss on investments).(54,256)(1,502,326)(9,922,238)Change in third-party interests in SVF .(1,127,949)390,1372,576,6

42、92Loss(gain)on other investments and other loss(gain).97,432(309,705)(2,045,473)Income taxes.320,674(151,416)(1,000,039)Decrease(increase)in investments from asset management subsidiaries.152,514(230,986)(1,525,566)Increase/decrease in derivative financial assets and derivative financial liabilities

43、 in asset management subsidiaries.49,067(248)(1,638)Decrease(increase)in restricted cash in asset management subsidiaries.138,915(3,082)(20,355)(Decrease)increase in borrowed securities in asset management subsidiaries.(131,796)2,81618,599Increase in trade and other receivables.(517,155)(476,511)(3,

44、147,157)(Increase)decrease in inventories.(18,929)5,43635,903Increase in trade and other payables.439,566325,7312,151,318Other.13,152209,1071,381,063Subtotal.1,573,6061,241,6648,200,674Interest and dividends received .111,740256,0831,691,321Interest paid .(418,163)(430,422)(2,842,758)Income taxes pa

45、id.44(638,160)(885,617)(5,849,131)Income taxes refunded .44112,26968,839454,653Net cash provided by operating activities.741,292 250,547$1,654,759SoftBank Group Corp.Financial Report 20249(Millions of yen)(Thousands of U.S.dollars)NotesFiscal year endedMarch 31,2023Fiscal year endedMarch 31,2024Fisc

46、al year endedMarch 31,2024Cash flows from investing activitiesPayments for acquisition of investments.(313,413)(800,925)$(5,289,776)Proceeds from sales/redemption of investments.44619,775219,6681,450,816Payments for acquisition of investments by SVF.(456,351)(212,045)(1,400,469)Proceeds from sales o

47、f investments by SVF.833,180922,0206,089,558Payments for acquisition of investments by asset management subsidiaries.(76,877)(507,741)Payments for acquisition of control over subsidiaries.44(14,854)(104,484)(690,073)Proceeds from loss of control over subsidiaries.6,99896,755639,026Purchase of proper

48、ty,plant and equipment,and intangible assets.44(633,765)(622,612)(4,112,093)Payments for loan receivables.(14,932)(313,686)(2,071,765)Collection of loan receivables.94,020107,481709,867Proceeds from withdrawal of trust accounts in SPACs.44323,666Payments into time deposits .(162,691)(148,657)(981,81

49、8)Proceeds from withdrawal of time deposits.152,61077,954514,854Other.113,33513,94792,114Net cash provided by(used in)investing activities.547,578 (841,461)$(5,557,500)SoftBank Group Corp.Financial Report 202410(Millions of yen)(Thousands of U.S.dollars)NotesFiscal year endedMarch 31,2023Fiscal year

50、 endedMarch 31,2024Fiscal year endedMarch 31,2024Cash flows from financing activities(Repayment of)proceeds in short-term interest-bearing debt,net.22 (73,371)182,874$1,207,807Proceeds from interest-bearing debt .229,176,1125,914,09039,060,102Repayment of interest-bearing debt.22(6,294,991)(5,889,18

51、6)(38,895,621)Repayment of lease liabilities.(266,423)(211,231)(1,395,093)Contributions into SVF from third-party investors.17,857Distribution/repayment from SVF to third-party investors.7(544,242)(783,522)(5,174,837)Redemption of non-controlling interests subject to possible redemption .44(319,401)

52、Proceeds from the partial sales of shares of subsidiaries to non-controlling interests.44724747,5654,937,356Purchase of shares of subsidiaries from non-controlling interests.44(5,181)(112,009)(739,773)Redemption of other equity instruments.44(104,597)(277,760)(1,834,489)Distribution to owners of oth

53、er equity instruments.(36,680)(25,624)(169,236)Proceeds from the issuance of other equity instruments in subsidiaries.44120,000792,550Purchase of treasury stock.(1,055,436)(8)(53)Cash dividends paid.(70,241)(64,356)(425,045)Cash dividends paid to non-controlling interests .18(288,452)(288,119)(1,902

54、,906)Other.55,83981,064535,394Net cash provided by(used in)financing activities.191,517(606,222)(4,003,844)Effect of exchange rate changes on cash and cash equivalents 275,765491,8683,248,583Decrease in cash and cash equivalents relating to transfer of assets classified as held for sale (33,011)(218

55、,024)Increase(decrease)in cash and cash equivalents 1,756,152(738,279)(4,876,026)Cash and cash equivalents at the beginning of the year 85,169,0016,925,15345,737,752Cash and cash equivalents at the end of the year 8 6,925,153 6,186,874$40,861,726SoftBank Group Corp.Financial Report 2024111.Reporting

56、 entitySoftBank Group Corp.is a corporation domiciled in Japan.The registered address of SoftBank Group Corp.s head office is disclosed on our website(https:/group.softbank/en/).These consolidated financial statements are composed of SoftBank Group Corp.and its subsidiaries(the“Company”).The Company

57、 engages in various businesses in the information industry,with its core business being in the Investment Business of Holding Companies segment,the SoftBank Vision Funds segment,the SoftBank segment,and the Arm segment.The details are described in“(1)Description of reportable segments”under“Note 6.S

58、egment information.”2.Basis of preparation of consolidated financial statements(1)Compliance with IFRS Accounting StandardsThe consolidated financial statements of the Company have been prepared in accordance with IFRS Accounting Standards(“IFRS”).(2)Basis of measurementThese consolidated financial

59、statements have been prepared on the historical cost basis,except for certain items,such as financial instruments,that are measured at fair value as described in“Note 3.Material accounting policies.”(3)Presentation currency and unit of currencyThese consolidated financial statements have been presen

60、ted in Japanese yen,which is the currency of the primary economic environment of SoftBank Group Corp.(“functional currency”),and yen amounts are rounded to the nearest million.The translations of Japanese yen amounts into U.S.dollar amounts are included solely for the convenience of readers outside

61、of Japan and have been made at a rate of 151.41 to$1,the approximate rate of exchange at March 31,2024.Such translations should not be construed as representations that the Japanese yen amounts could be converted into U.S.dollars at that or any other rate.(4)Changes in presentation(Consolidated stat

62、ement of cash flows)a.Cash flows from investing activities“Payments for acquisition of control over subsidiaries,”“Payments into time deposits,”and“Proceeds from withdrawal of time deposits,”which were included in“Other”in the past fiscal year,are separately presented for the fiscal year ended March

63、 31,2024,since the amounts increased and became significant.In order to reflect the changes in presentation,(14,854)million,(162,691)million,and 152,610 million,which were included in“Other”for the fiscal year ended March 31,2023,are reclassified as“Payments for acquisition of control over subsidiar

64、ies,”“Payments into time deposits,”and“Proceeds from withdrawal of time deposits,”respectively.b.Cash flows from financing activities“Proceeds from the partial sales of shares of subsidiaries to non-controlling interests”and“Purchase of shares of subsidiaries from non-controlling interests,”which we

65、re included in“Other”in the past fiscal year,are separately presented for the fiscal year ended March 31,2024,since the amounts increased and became significant.In order to reflect the changes in presenta-tion,724 million and(5,181)million,which were included in“Other”for the fiscal year ended March

66、 31,2023,are reclassified as“Proceeds from the partial sales of shares of subsidiaries to non-controlling interests”and“Purchase of shares of subsidiaries from non-controlling interests,”respectively.(5)New standards and interpretations not yet adopted by the CompanyNew standards and interpretations

67、 that are newly established or amended before the approval date of the consolidated financial statements and not yet adopted by the Company may have the following potential impacts.The impacts on the consolidated financial statements of the Company due to the adoption are currently under review.Stan

68、dard/interpretationMandatory adoption(From the year beginning)To be adopted by the CompanyOutline of the new standardsIAS 1Presentation in the financial statementsJanuary 1,2024From the fiscal year ending March 31,2025The main amendments are as follows:Clarifying the classification of liabilities in

69、to current liabilities or non-current liabilities Amendment to require the disclosure of information on non-current liabilities with covenantsIFRS 18Presentation and disclosure in the financial statementsJanuary 1,2027From the fiscal year ending March 31,2028The IFRS 18 replaces the previous IAS1 an

70、d the main amendments are as follows:Amendment to require the classification of income and expenses into either operating,investing,or financing categories and the presentation of two subtotals,“Operating profit or loss”and“Profit or loss before financing and income taxes and profit or loss”under th

71、e statement of profit or loss Amendment to the grouping of useful information for the financial statements,including the introduction of the principles of aggregation and disaggregation of information under the statement of profit or loss Amendment to require the disclosure of information on all ind

72、icators that meet the definition of management-defined performance measures(MPMs)There are no other new standards and interpretations that are newly established or amended before the approval date of the consolidated financial statements and have significant impacts on the consolidated financial sta

73、tements of the Company.Notes to Consolidated Financial StatementsSoftBank Group Corp.Financial Report 202412(6)Definition of company names and abbreviations used in the financial reportCompany names and abbreviations,unless otherwise stated or interpreted differently in the context,are as follows:Co

74、mpany names/AbbreviationsDefinitionSoftBank Group Corp.SoftBank Group Corp.(stand-alone basis)The CompanySoftBank Group Corp.and its subsidiariesEach of the following names or abbreviations indicates the respective company and its subsidiaries,if any.SB Northstar or the asset management subsidiarySB

75、 Northstar LPSVF1SoftBank Vision Fund L.P.and its alternative investment vehiclesSVF2SoftBank Vision Fund II-2 L.P.SVF2 LLCSVF II Investment Holdings LLCLatAm FundsSBLA Latin America Fund LLCSLA LLCSLA Holdco II LLCSVFSVF1,SVF2,and LatAm FundsSBIASB Investment Advisers(UK)LimitedSBGASB Global Advise

76、rs LimitedArmArm Holdings plc or Arm Limited*FortressFortress Investment Group LLCWeWorkWeWork Inc.SprintSprint CorporationT-MobileT-Mobile US,Inc.after merging with SprintAlibabaAlibaba Group Holding LimitedMgmtCoMASA USA LLC*A corporate reorganization was undertaken in August 2023,pursuant to whic

77、h Arm Holdings Limited,a former subsidiary of Arm Limited,acquired all the issued ordinary shares of Arm Limited,thereby making it a wholly-owned subsidiary.Subsequently,Arm Holdings Limited changed its name to Arm Holdings plc and was listed on the Nasdaq Global Select Market through an initial pub

78、lic offering on September 14,2023.3.Material accounting policiesAccounting policies the Company has adopted have been applied consistently to all periods presented in these consolidated financial statements.Please refer to“(20)Material accounting policies for the SoftBank Vision Funds segment”for de

79、tails of the SoftBank Vision Funds segment.(1)Basis of consolidationa.SubsidiariesA subsidiary is an entity that is controlled by SoftBank Group Corp.The Company controls an entity when the Company is exposed to,or has rights to,variable returns from its involvement with the entity and has the abili

80、ty to affect those returns through its power over the entity.Please refer to“a.Consolidation of SVF1,SVF2,and LatAm Funds by the Company”under“(20)Material accounting policies for the SoftBank Vision Funds segment”for details of SVF1,SVF2,and LatAm Funds.The subsidiaries financial statements are con

81、solidated from the date when control is acquired(“acquisition date”)until the date when the control is lost.When necessary,adjustments are made to the financial statements of subsidiaries to bring their accounting policies in line with those used by the Company.Non-controlling interests consist of t

82、hose interests at the acquisition date and any adjustments for subsequent changes in those interests.Total comprehensive income of subsidiaries is generally attributed to the owners of the parent and to the non-controlling interests,even if this results in the non-controlling interests having a defi

83、cit balance.All intragroup balances and transactions and unrealized gains and losses arising from intragroup transactions are eliminated on consolidation.Changes in the Companys ownership interests in subsidiaries that do not result in the Company losing control over the subsidiaries are accounted f

84、or as equity transactions.The carrying amounts of the Companys interests and the non-controlling interests are adjusted to reflect the changes in their interests in the subsidiaries.Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consid

85、eration paid or received is recognized directly in equity and attributed to owners of the parent.When SoftBank Group Corp.loses control of a subsidiary,a gain or loss is calculated as the difference between:the aggregate of the fair value of the consideration received and the fair value of any retai

86、ned interest;and the net carrying amount of the assets(including goodwill),liabilities,and non-controlling interests of the subsidiary when control is lost.Any amounts previously recognized in accumulated other comprehensive income in relation to the former subsidiaries are reclassified to profit or

87、 loss.b.Associates and joint venturesAn associate is an entity over which SoftBank Group Corp.has significant influence in the financial and operating policy decisions,but does not have control or joint control.A joint venture is an investment which parties including SoftBank Group Corp.have joint c

88、ontrol based on the contractual arrangement that requires unanimous consent related to significant decisions of the business activities and have rights to the net assets of the arrangement.SoftBank Group Corp.Financial Report 202413Investments in associates and joint ventures are accounted for using

89、 the equity method or accounted for using FVTPL.(a)Investments accounted for using the equity methodInvestments in associates and joint ventures are accounted for using the equity method and are initially recognized at cost.The investment is adjusted thereafter to recognize the Companys interest in

90、profit or loss and other comprehensive income from the date of acquisition to the date of loss of significant influence.When the losses of an associate and a joint venture exceed the Companys interest in the associate and the joint venture,long-term interests that,in substance,form a part of the net

91、 investment in the company are decreased to zero,and no additional loss is recognized except when the Company incurs legal or constructive obligations to or makes payments on behalf of the associate and the joint venture.Unrealized gains or losses on intercompany transactions with associates and joi

92、nt ventures are added to or deducted from the carrying amount of the investments only to the extent of the Companys interests in the associates and the joint ventures.Any excess in the cost of acquisition of an associate and a joint venture over the Companys interest of the net fair value of the ide

93、ntifiable assets and liabilities recognized at the date of acquisition is recognized as goodwill and included within the carrying amount of the investments in associates and joint ventures.Because goodwill is not separately recognized,it is not tested for impairment separately.Instead,the entire car

94、rying amount of the investments in associates and joint ventures,including goodwill,is tested for impairment as a single asset whenever objective evidence indicates that the investment may be impaired.(b)Investments accounted for using FVTPLAmong the investments in associates and joint ventures,inve

95、stments directly made by SVF1,SVF2,and LatAm Funds,and investments made by SoftBank Group Corp.or its subsidiaries based on the premise of transferring to SVF1,SVF2,and LatAm Funds,and preferred stock investments whose feature is substantively different from common stock,are not accounted for using

96、the equity method.These investments are classified as financial assets measured at fair value through profit or loss(“financial assets at FVTPL”).For the Companys accounting policy for the financial assets at FVTPL,please refer to“(4)Financial instruments.”Also,please refer to“(b)Investments in asso

97、ciates and joint ventures”in“b.Portfolio company investments made by SVF1,SVF2,and LatAm Funds”under“(20)Material accounting policies for the SoftBank Vision Funds segment”for details of SVF1,SVF2,and LatAm Funds.(2)Business combinationsBusiness combinations are accounted for using the acquisition m

98、ethod on the acquisition date.The consideration transferred in a business combination is measured as the sum of the assets transferred by the Company,liabilities assumed by the Company from the former owners of the acquiree,and the fair value at the acquisition date of the equity interests issued by

99、 the Company.Acquisition-related costs are recognized in profit or loss as incurred.At the acquisition date,the identifiable assets acquired and the liabilities assumed are recognized at their fair value,except that:deferred tax assets or liabilities and assets or liabilities related to employee ben

100、efits are recognized and measured in accordance with IAS 12“Income Taxes”and IAS 19“Employee Benefits,”respectively;liabilities or equity instruments related to share-based payment arrangements of the acquiree or share-based payment arrangements of the Company entered into to replace share-based pay

101、ment arrangements of the acquiree are measured in accordance with IFRS 2“Share-based Payment”at the acquisition date;and assets or disposal groups that are classified as held-for-sale are measured in accordance with IFRS 5“Non-current Assets Held-for-Sale and Discontinued Operations.”The excess of t

102、he consideration transferred and the amount of any non-controlling interest in the acquiree over the fair value of the identifiable net assets acquired at the acquisition date is recorded as goodwill.If the consideration transferred and the amount of any non-controlling interest in the acquiree is l

103、ess than the fair value of the identifiable net assets of the acquired subsidiary,the difference is recognized immediately in profit or loss.On an acquisition-by-acquisition basis,the Company chooses a measurement basis of non-controlling interests at either fair value or by the proportionate share

104、of the non-controlling interests in the recognized amounts of the acquirees identifiable net assets.When a business combination is achieved in stages,the Companys previously held interest in the acquiree is remeasured at fair value at the acquisition date and the resulting gain or loss,if any,is rec

105、ognized in profit or loss.Amounts arising from changes in the value of interests in the acquiree prior to the acquisition date that have previously been recognized in other comprehensive income are recognized using the same accounting treatment as the Company disposes the interests.If the initial ac

106、counting for a business combination is incomplete by the end of the fiscal year,the Company reports in its consolidated financial statements provisional amounts for the items for which the accounting is incomplete.The Company retrospectively adjusts the provisional amounts recognized at the acquisit

107、ion date as an adjustment during the measurement period when new information about facts and circumstances existed as of the acquisition date and,if known,would have affected the recognized amounts for the business combination.The measurement period shall not exceed one year from the acquisition dat

108、e.SoftBank Group Corp.Financial Report 202414Goodwill arising in business combinations that occurred before the date of transition to IFRS is carried over at the carrying amount under the previous accounting principles(Japanese Generally Accepted Accounting Principles,“JGAAP”)as of the date of trans

109、ition to IFRS,and recorded by that amount after an impairment test.(3)Foreign currency translationa.Transactions denominated in foreign currenciesThe financial statements of each group company are prepared in their currency based on the primary economic environment in which it operates(“functional c

110、urrency”).Transactions in currencies other than the entitys functional currency(foreign currencies)are translated at the rates of exchange prevailing at the dates of the transactions.Monetary items denominated in foreign currencies are translated into functional currency at the rates prevailing at t

111、he end of the fiscal year.Non-monetary items carried at fair value that are denominated in foreign currencies are translated into the functional currency at the rates prevailing at the date when the fair value was measured.Exchange differences arising from translation are recognized in profit or los

112、s,however,exchange differences arising from equity financial assets at fair value through other comprehen-sive income(“equity financial assets at FVTOCI”)and cash flow hedges are recognized in other comprehensive income.b.Foreign operationsFor the purposes of presenting consolidated financial statem

113、ents,the assets and liabilities of the Companys foreign operations(including goodwill arising from acquisitions and the adjustments of fair value)are translated into Japanese yen using exchange rates prevailing at the end of the fiscal year.Income,expenses and cash flows are translated into Japanese

114、 yen by using the average exchange rates for each quarter.When the translated amounts do not approximate the amounts translated by the exchange rates at the dates of the transactions,the exchange rates at the transaction dates are used for the translation.The exchange rates used in the translation a

115、re described in“Note 32.Foreign currency exchange rates.”Exchange differences arising from translating the financial statements of foreign operations are recognized in other comprehensive income and cumulative differences are included in accumu-lated other comprehensive income.These cumulative diffe

116、rences are reclassified from equity to profit or loss when the Company loses control or significant influence over the foreign operation.(4)Financial instrumentsa.Financial instrumentsFinancial assets and financial liabilities are recognized when the Company becomes a party to the contractual provis

117、ions of the instrument.Financial assets and financial liabilities are measured at fair value at the time of initial recogni-tion.Transaction costs that are directly attributable to the acquisition of financial assets and issuance of financial liabilities other than financial assets at FVTPL and fina

118、ncial liabilities at fair value through profit or loss(“financial liabilities at FVTPL”)are added to the fair value of the financial assets or deducted from the fair value of financial liabilities at the time of initial recognition.Transaction costs that are directly attributable to the acquisition

119、of the financial assets at FVTPL or financial liabilities at FVTPL are recognized in profit or loss.b.Non-derivative financial assetsNon-derivative financial assets are classified as financial assets at amortized cost,debt financial assets at fair value through other comprehensive income(“debt finan

120、cial assets at FVTOCI”),equity financial assets at FVTOCI,and financial assets at FVTPL.The classification depends on the nature and purpose of the financial assets and is determined upon initial recognition.All purchases and sales of financial assets made in the ordinary course of business are reco

121、gnized and derecognized on a trade date basis.Purchases and sales made in the ordinary course of business refer to acquiring or disposing of financial assets under a contract that requires the delivery of assets within a timeframe established by regulation or convention in the marketplace.(a)Financi

122、al assets measured at amortized costFinancial assets are classified as“financial assets measured at amortized cost”if both of the following conditions are met:the financial assets are held within a business model for which the objective is to hold financial assets to collect contractual cash flows;a

123、nd the contractual terms of the financial assets give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.Subsequent to initial recognition,financial assets at amortized cost are measured at amortized cost using the effective i

124、nterest method,less any impairment.Interest income based on the effective interest rate is recognized in profit or loss.(b)Debt financial assets at FVTOCIFinancial assets are classified as debt financial assets at FVTOCI if both of the following conditions are met:SoftBank Group Corp.Financial Repor

125、t 202415 the financial assets are held within a business model for which the objective is achieved by both collecting contractual cash flows and selling financial assets;and the contractual terms of the financial assets give rise on specified dates to cash flows that are solely payments of principal

126、 and interest on the principal amount outstanding.Subsequent to initial recognition,debt financial assets at FVTOCI are measured at fair value,and gains or losses arising from changes in fair value are recognized in other comprehensive income.Any cumulative amounts recognized in other comprehensive

127、income are reclassified to profit or loss upon derecognition.Foreign exchange gains and losses arising on monetary financial assets classified as debt financial assets at FVTOCI and interest income calculated using the effective interest method relating to debt financial assets at FVTOCI are recogni

128、zed in profit or loss.(c)Equity financial assets at FVTOCIAt initial recognition,the Company has made an irrevocable election for equity financial assets that would otherwise be measured at fair value through profit or loss to present subsequent changes in fair value in other comprehensive income an

129、d classifies such investments as equity financial assets at FVTOCI.Subsequent to initial recognition,equity financial assets at FVTOCI are measured at fair value,and gains or losses arising from changes in fair value are recognized in other comprehensive income.When financial assets are derecognized

130、 or there is a significant or prolonged decline in fair value below the cost,cumulative gains and losses recognized in other comprehensive income are directly transferred to retained earnings.Dividends received on equity financial assets at FVTOCI are recognized in profit or loss.(d)Financial assets

131、 at FVTPLFinancial assets are classified as financial assets at FVTPL,if they are classified as neither financial assets at amortized cost,debt financial assets at FVTOCI,nor equity financial assets at FVTOCI.Please refer to“(20)Material accounting policies for the SoftBank Vision Funds segment”for

132、the details of“Investments from SVF(FVTPL)”in the consolidated statement of financial position.Neither financial assets are designated as measured at fair value through profit or loss to eliminate or significantly reduce an accounting mismatch.Subsequent to initial recognition,financial assets at FV

133、TPL are measured at fair value and gains or losses arising from changes in fair value,dividend income and interest income are recognized in profit or loss.(e)Impairment of financial assetsA loss allowance is recognized for expected credit losses on financial assets at amortized cost,debt financial a

134、ssets at FVTOCI,and contract assets under IFRS 15“Revenue from Contracts with Customers.”At each fiscal period-end,the Company assesses whether the credit risk on financial assets has increased significantly since initial recognition.If the credit risk on financial assets has not increased significa

135、ntly since initial recognition,the Company measures the loss allowance for financial assets at an amount equal to the 12-month expected credit losses.If the credit risk on financial assets has increased significantly since initial recognition or for credit impaired financial assets,the Company measu

136、res the allowance account for the financial assets at an amount equal to the lifetime expected credit losses.However,the Company always measures the loss allowance at an amount equal to the lifetime expected credit losses for trade receivables and contract assets.Expected credit losses are estimated

137、 in a way that reflects the following:an unbiased and probability-weighted amount that is determined by evaluating a range of possible outcomes;the time value of money;and reasonable and supportable information that is available without undue cost or effort at the reporting date about past events,cu

138、rrent conditions,and forecasts of future economic conditions.Provision of the loss allowance relating to the measurement is recognized in profit or loss.Reversal of the loss allowance is also recognized in profit or loss when events that would reduce the loss allowance occur in subsequent periods.Th

139、e carrying amount of financial assets is directly reduced against the loss allowance when the Company has no reasonable expectations of recovering financial assets in their entirety,or a portion thereof.(f)Derecognition of financial assetsThe Company derecognizes a financial asset when,and only when

140、 the contractual rights to the cash flows from the financial asset expire or when it transfers the financial asset and substantially all the risks and rewards of ownership of the financial asset.c.Non-derivative financial liabilitiesNon-derivative financial liabilities are classified into financial

141、liabilities at FVTPL or financial liabilities measured at amortized cost,and the classification is determined at initial recognition.Non-derivative financial liabilities are classified into financial liabilities at FVTPL when the entire hybrid contract,including more than one embedded derivative,is

142、designated as a financial liability at FVTPL.Subsequent to initial recognition,financial liabilities at FVTPL are measured at fair value and gains or losses arising from changes in fair value and interest costs are recognized in profit or loss.Financial liabilities measured at amortized cost are mea

143、sured using the effective interest method,subsequent to initial recognition.The Company derecognizes financial liabilities when the Companys obligations are met,or debt is discharged or cancelled or expires.SoftBank Group Corp.Financial Report 202416d.Derivatives and hedge accounting(a)DerivativesTh

144、e Company is engaged in derivative transactions,including foreign currency forward contracts,currency swaps,option contracts,and collar transactions in order to manage its exposure to foreign exchange rate,interest rate,and share price risks.Derivatives are initially recognized at fair value at the

145、date the derivative contracts are entered into and are subsequently measured at their fair values at the end of fiscal year.Changes in the fair value of derivatives are recognized in profit or loss immediately unless the derivative is designated and effective as a hedging instrument.Derivative finan

146、cial assets not designated as hedging instruments are classified into financial assets at FVTPL,and derivative financial liabilities not designated as hedging instruments are classified into financial liabilities at FVTPL.(b)Hedge accountingThe Company designates certain derivative transactions as h

147、edging instruments and accounts for them as cash flow hedges.At the inception of the hedge,the Company formally designates and documents the hedge relationship qualifying for hedge accounting,along with its risk management objectives and its strategies for undertaking various hedge transactions.At t

148、he inception of the hedge and on an ongoing basis,the Company evaluates whether the hedging instrument is highly effective in offsetting changes in fair values or cash flows of the relevant hedged item during the underlying period.Specifically,a hedge is determined to be effective when all of the fo

149、llowing criteria are met:i.there is an economic relationship between the hedged item and the hedging instrument;ii.the effect of credit risk does not dominate the value changes that result from that economic relationship;and iii.the hedge ratio of the hedging relationship is the same as that resulti

150、ng from the quantity of the hedged item the Company actually hedges and the quantity of the hedging instrument the Company actually uses to hedge the quantity of the hedged item.If a hedging relationship ceases to meet the hedge effectiveness requirement relating to the hedge ratio but the risk mana

151、gement objective remains the same,the Company adjusts the hedge ratio so that the hedging relationship becomes effective again.The effective portion of changes in the fair value of derivatives that are designated and qualifying as cash flow hedges are recognized in other comprehensive income and acc

152、umulated in equity.Accumulated other comprehensive income is transferred to profit or loss through a line item relating to the hedged item in the consolidated statement of profit or loss in the year when the cash flows from the hedged item affect profit or loss.Any ineffective portion of changes in

153、fair value of derivatives is recognized immediately in profit or loss.The Company discontinues hedge accounting prospectively only when the hedging relationship ceases to meet the qualifying criteria,such as instances when the hedging instrument expires or is sold,terminated,or exercised.When hedge

154、accounting is discontinued,any related income included in accumulated other comprehensive income remains in equity and is reclassified to profit or loss when the forecasted transaction is ultimately recognized in profit or loss.When a forecasted transaction is no longer expected to occur,any related

155、 income included in accumulated other comprehensive income is immediately reclassified to profit or loss.(c)Embedded derivativesDerivatives embedded in non-derivative financial assets host contracts(“embedded derivatives”)are not separated from the host contracts and are accounted for as hybrid cont

156、racts in their entirety.When the economic characteristics and risks of the derivatives embedded in non-derivative financial liabilities host contracts(“embedded derivatives”)are not closely related to the economic characteristics and risks of the host contracts and the whole financial instruments,in

157、cluding the embedded derivatives,are not classified as financial liabilities at FVTPL,the embedded derivatives are separated from the host contracts and accounted for separately as derivatives.If it is required to separate embedded derivatives from their host contracts,but the Company is unable to m

158、easure the embedded derivatives separately either at acquisition or at the end of a subsequent fiscal period,the Company designates and accounts for the entire hybrid contract as financial liabilities at FVTPL.e.Offsetting financial assets and financial liabilitiesFinancial assets and financial liab

159、ilities are offset,and the net amounts are presented in the consolidated statement of financial position when,and only when,the Company currently has a legally enforceable right to set off the recognized amounts,and intends either to settle on a net basis or to realize the assets and settle the liab

160、ilities simultaneously.(5)Cash and cash equivalentsCash and cash equivalents consist of cash,demand deposits and short-term investments with maturities of three months or less that are readily convertible to cash and subject to insignificant risk of change in value.(6)InventoriesInventories are stat

161、ed at the lower of cost or net realizable value.Inventories mainly consist of mobile devices and accessories in the SoftBank segment.Their costs comprise all costs of purchase and other costs incurred in bringing the inventories to their present location and condition.The costs are mainly calculated

162、 by the moving-average method.SoftBank Group Corp.Financial Report 202417Net realizable value is calculated based on the estimated selling price in the ordinary course of business,less estimated costs of marketing,selling,and distribution.(7)Property,plant and equipmentProperty,plant and equipment a

163、re measured on a historical cost basis,less accumulated depreciation and accumulated impairment losses.Historical cost includes costs directly attributable to the acquisition of the asset and the initial estimated costs related to disassembly,retirement and site restoration.Property,plant and equipm

164、ent are depreciated mainly using the straight-line method over the estimated useful lives of each component.The depreciable amount is calculated as the cost of an asset,less its residual value.Land and construction in progress are not depreciated.The estimated useful lives of major components of pro

165、perty,plant and equipment are as follows:Buildings and structuresBuildings.20-50 yearsStructures.4-50 yearsBuilding fixtures.3-22 yearsTelecommunications equipmentWireless equipment,switching equipment,and other network equipment.5-15 yearsTowers.10-42 yearsOther.5-30 yearsFurniture,fixtures and equ

166、ipmentLeased mobile devices.2-3 yearsOther.2-20 yearsThe depreciation methods,useful lives,and residual values of assets are reviewed at the end of each fiscal year,and any changes are applied prospectively as a change in accounting estimate.(8)GoodwillPlease refer to“(2)Business combinations”for th

167、e measurement of goodwill at initial recognition.Goodwill is measured at cost less accumulated impairment losses.Goodwill is not amortized,and is tested for impairment when there is an indication of impairment in cash-generating units or groups of cash-generating units to which goodwill has been all

168、ocated,and annually,regardless of any indication of impairment.Impairment is described in“(11)Impairment of property,plant and equipment,right-of-use assets,intangible assets and goodwill.”The Companys policy for goodwill arising from the acquisition of an associate is described in“(1)Basis of conso

169、lidation.”(9)Intangible assetsThe Company uses the cost model for measurement of intangible assets in which the assets are measured at historical cost,less accumulated amortization and accumulated impairment losses.Intangible assets acquired individually are measured at cost upon initial recognition

170、.Intangible assets acquired in a business combination are recognized separately from goodwill upon initial recognition and are measured at fair value at the acquisition date.Any internally generated research and development expenditure is recognized as an expense in the period in which it is incurre

171、d,except for expenditures on development activities eligible for capitalization(internally generated intangible assets).The amount initially recognized for internally generated intangible assets is the sum of the expenditures incurred from the date when the intangible asset first meets all of the ca

172、pitalization criteria to the date the development is completed.There are intangible assets with finite useful lives and intangible assets with indefinite useful lives.The intangible assets with finite useful lives are amortized over the estimated useful lives by the straight-line method.The estimate

173、d useful lives of major categories of intangible assets with finite useful lives are as follows:Software.5-10 yearsCustomer relationships .8-25 yearsTechnologies.8-20 yearsSpectrum-related costs.18 yearsManagement contracts.6-10 yearsOther.2-25 yearsAmortization methods,useful lives and residual val

174、ues of assets are reviewed at the end of each fiscal year,and any changes are applied prospectively as a change in accounting estimate.Spectrum-related costs are SoftBank Corp.s share of costs for the spectrums assigned to SoftBank Corp.based on the Radio Act.These spectrum-related costs include the

175、 costs arising from the migration of pre-existing users to other spectrums by the termination campaign.Useful lives are estimated based on the actual utilization of the frequency spectrum in the past.Intangible assets with indefinite useful lives are as follows:Trademarks(with indefinite useful live

176、s)The intangible assets with indefinite useful lives and the intangible assets that are not yet available for use are not amortized.The impairment of these assets is described in“(11)Impairment of property,plant and equipment,right-of-use assets,intangible assets and goodwill.”In addition,the Compan

177、y does not apply IFRS 16“Leases”to leases of intangible assets.SoftBank Group Corp.Financial Report 202418(10)Leasesa.Overall(a)Identifying a leaseAt the inception of a contract,the Company assesses whether the contract is,or contains,a lease.The Company deems a contract is,or contains,a lease if th

178、e contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.If the following conditions are met,the Company deems that the contract conveys the right to control the use of an identified asset.i.The use of the identified asset is specified

179、 in a contract and the lessor does not have the right to substitute the asset.ii.Throughout the period of use,the lessee has the right to obtain substantially all of the economic benefits from the use of the identified asset.iii.The lessee has the right to direct the use of the identified asset.Wher

180、e the relevant decisions about how and for what purpose the asset is used are predetermined,the lessee is deemed to have the right to direct the use of the identified asset if:the lessee has the right to operate the asset;or the lessee designed the asset in a way that predetermines how and for what

181、purpose the asset will be used.(b)Lease termThe lease term is determined as the non-cancellable period of a lease,together with both:periods covered by an option to extend the lease if the lessee is reasonably certain to exercise that option;and periods covered by an option to terminate the lease if

182、 the lessee is reasonably certain not to exercise that option.b.Lessee(a)Separating components of a contractFor a contract that is,or contains,a lease,the Company accounts for each lease component within the contract as a lease separately from non-lease components of the contract by allocating the c

183、onsideration in the contract to each lease component on the basis of the relative stand-alone price of the lease component and the aggregate stand-alone price of the non-lease components.(b)Lease transactions of intangible assetsThe Company does not apply IFRS 16“Leases”to leases of intangible asset

184、s.(c)Right-of-use assetAt the commencement date,the Company recognizes a right-of-use asset and a lease liability.The right-of-use asset is initially measured at cost.The cost of the right-of-use asset comprises:the amount of the initial measurement of the lease liability;any lease payments made at

185、or before the commencement date;any initial direct costs;and an estimate of costs to be incurred in dismantling and removing the underlying asset,restoring the site on which it is located or restoring the underlying asset;less any lease incentives received.After the initial measurement,the right-of-

186、use asset is depreciated on a straight-line basis:(a)over the estimated useful life if the transfer of ownership of the underlying asset is certain;or(b)over the shorter of the lease term or the estimated useful life of the leased asset if the transfer of ownership is not certain.The estimated usefu

187、l life of the right-of-use asset is determined by the same method applied to property,plant and equipment.Further,if the right-of-use asset is impaired,an impairment loss is deducted from the carrying amount of the right-of-use asset.The details of lease terms by asset classes for right-of-use asset

188、s held for leases are described in“Note 15.Right-of-use assets.”(d)Lease liabilityAt the commencement date,the Company measures the lease liability at the present value of the lease payments that will be paid over the lease term after that date.In calculating the present value,the interest rate impl

189、icit in the lease is used as a discount rate if that rate can be readily determined.If that rate cannot be readily determined,the Companys incremental borrowing rate is used.The lease payments included in the measurement of the lease liability mainly comprise:fixed payments;lease payments to be made

190、 during extension periods,if the lease term reflects the exercise of an option to extend the lease;and payments of penalties for terminating the lease,if the lease term reflects the exercise of an option to terminate the lease.After the initial measurement,the lease liability is measured at amortize

191、d cost using an effective interest method.The lease liability is remeasured if there is a change in future lease payments resulting from a change in an index or a rate,if there is a change in the amounts expected to be payable under a residual value guarantee,or if there is a change in the assessmen

192、t of the possibility of an option to extend or terminate the lease being exercised.If the lease liability is remeasured,the carrying amount of the right-of-use asset is also adjusted by the amount of the remeasurement of the lease liability.However,if the amount of liability reduced by the remeasure

193、ment of the lease liability exceeds the carrying amount of the right-of-use asset,any remaining amount of the remeasurement after reducing the right-of-use asset to zero is recognized in profit or loss.c.Lessor(a)Separating components of a contractFor a contract that is,or contains,a lease,the Compa

194、ny allocates the consideration in the SoftBank Group Corp.Financial Report 202419contract applying IFRS 15“Revenue from Contracts with Customers”to lease components and non-lease components of the contract.(b)Classification of leasesAt the commencement of a lease contract,the Company classifies whet

195、her the contract is a finance lease or an operating lease.A lease is classified as a finance lease if it transfers substan-tially all the risks and rewards incidental to ownership of an underlying asset.Otherwise,a lease is classified as an operating lease.The Company assesses that substantially all

196、 the risks and rewards incidental to ownership of an underlying asset are transferred in cases where the lease term is for a major part of the economic life of the underlying asset,or the amount of present value of the lease payment is substantially all the amount of fair value of the asset.(c)Suble

197、ase classificationIf the Company is a party to a sublease contract,the Company accounts for the head lease(lessee)and the sublease(lessor)separately.When classifying the sublease as a finance lease or an operating lease,the Company considers the risks and rewards incidental to,and the useful life of

198、,the right-of-use asset that is recognized by the Company in the head lease,instead of that of the leased asset.(d)Recognition and measurementLease receivables in finance leases are recorded as the uncollected amount of net lease receiv-ables,as of the date the lease is determined and through its ma

199、turity.Lease receivables are apportioned between financing income and the repayments of the lease receivables.Lease receivables are measured at amortized cost using the effective interest method.Interest income based on the effective interest rate is recognized in profit or loss.Total lease payments

200、 received from operating leases received during the lease term are recognized as income on a straight-line basis over the lease term.(11)Impairment of property,plant and equipment,right-of-use assets,intangible assets and goodwilla.Impairment of property,plant and equipment,right-of-use assets,and i

201、ntangible assetsAt the end of the fiscal year,the Company determines whether there is any indication that property,plant and equipment,right-of-use assets,and intangible assets may be impaired.If any such indication exists,the recoverable amount of the asset is estimated.When it is not possible to e

202、stimate the recoverable amount of an individual asset,the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs.A cash-generating unit is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows f

203、rom other assets or groups of assets.Intangible assets with indefinite useful lives and intangible assets that are not yet available for use are tested for impairment annually regardless of whether there is any indication of impairment.The recoverable amount is the higher of fair value less costs to

204、 sell,or value in use.In assessing value in use,the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects the time value of money and the risks specific to the asset.If the recoverable amount of an asset or cash-generating unit is estimated to

205、be less than its carrying amount,the carrying amount of the asset or cash-generating unit is reduced to its recoverable amount,and an impairment loss is recognized in profit or loss.At the end of the fiscal year,the Company evaluates whether there is any indication that an impairment loss related to

206、 assets other than goodwill recognized in prior years has decreased or been extinguished.If such indication of a reversal of an impairment loss exists,the recoverable amount of the asset or cash-generating unit is estimated.If the recoverable amount of an asset or cash-generating unit is estimated t

207、o be higher than its carrying amount,a reversal of an impairment loss is recognized,to the extent that the increased carrying amount does not exceed the lower of the recoverable amount or the carrying amount that would have been determined(net of depreciation and amortization)had no impairment loss

208、been recognized.b.Impairment of goodwillAt the end of the fiscal year and at the end of each quarter,the Company determines whether there is any indication that goodwill may be impaired.Goodwill is allocated to each of the cash-generating units or groups of cash-generating units that are expected to

209、 benefit from the synergies arising from the business combination,and it is tested for impairment annually,regardless of any indication of impairment,and when there is an indication that the cash-generating unit or groups of cash-generating units may be impaired.If,at the time of the impairment test

210、,the recoverable amount of the cash-generating unit or groups of cash-generating units is less than its carrying amount,the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the cash-generating unit or groups of cash-generating units and then to the other

211、assets pro rata based on the carrying amount of each asset in the unit or groups of cash-generating units.Any impairment loss for goodwill is recognized directly in profit or loss and is not reversed in subsequent periods.(12)ProvisionsProvisions are recognized when the Company has a present legal o

212、r constructive obligation as a result of a past event,it is probable that the Company will be required to settle the obligation,and a reliable estimate can be made of the amount of the obligation.Provisions are measured using the estimated future cash flows,discounted using a pre-tax rate SoftBank G

213、roup Corp.Financial Report 202420reflecting the time value of money and the specific risks of the liability,after taking into account the risks and uncertainties surrounding the obligation at the end of the fiscal year.The Company mainly recognizes asset retirement obligations,asbestos claims liabil

214、ities,and provisions for loss on contract as provisions.Asbestos claims liabilities are recognized because Fortress acquired and consolidated an entity that holds asbestos claims liabilities and related insurance assets.For the asbestos claims liabilities,the subsidiary estimates future costs for th

215、e cases filed alleging injury as a result of exposure to asbestos,and records amounts as deemed necessary.For provisions for loss on contract,the amount is estimated and recorded as deemed necessary to prepare for future losses incurred in fulfilling contracts with customers.(13)Treasury stockWhen t

216、he Company acquires its own equity share capital(“treasury stock”),the consideration paid,including any directly attributable incremental costs(net of income taxes),is deducted from equity.No gain or loss is recognized on the purchase,sale,or cancellation of the treasury stock.The difference between

217、 the carrying amount and the consideration on sale is recognized as capital surplus.(14)Assets or disposal groups classified as held for saleAssets or disposal groups,whose recoveries are expected principally through sale transactions rather than continuing use,are classified as held for sale when i

218、t is highly probable that the sale will be completed within one year,are available for immediate sale in their present condition,and manage-ment commits to a plan to sell.The Company,when committed to a sale plan involving loss of control of a subsidiary,classifies assets and liabilities of the subs

219、idiary as held for sale when the above criteria are met,regardless of whether the Company will retain a non-controlling interest in its former subsidiary after the sale.Assets classified as held for sale are measured at the lower of the carrying amounts and fair values less costs to sell and depreci

220、ation of property,plant and equipment and amortization of intangible assets are not conducted after the classification.(15)Share-based paymentsThe Company grants stock options and adopts restricted stock unit plans and restricted stock compen-sation plans,as equity-settled share-based compensation,a

221、nd cash-settled share-based compensation.Equity-settled share-based compensation is measured at fair value on the grant date.The fair value of stock options is calculated using models such as the Black-Scholes model,and the fair value of restricted stock units and restricted stocks is calculated usi

222、ng the share price on the grant date.The fair value determined on the grant date is expensed over the vesting period,based on the estimated stock options or restricted stock units that will eventually vest,with a corresponding increase in equity.The Company regularly reviews the assumptions made and

223、 revises estimates of the number of stock options or restricted stock units that are expected to vest,when necessary.Restricted stock units are vested on the grant date and accordingly the fair value of restricted stock units on the grant date is expensed in a lump sum.Cash-settled share-based compe

224、nsation is accounted for as liabilities and is measured initially at the fair value of the award.The fair value of the liabilities is remeasured on each closing date and the settlement date,and changes in fair values are recognized in profit or loss.(16)RevenueThe Companys accounting policy for reve

225、nue recognition is as follows:SoftBank segmentThe SoftBank segment provides mobile services,sales of mobile devices,broadband services,and solutions services in Japan,mainly through SoftBank Corp.,media,advertising and commerce services through LY Corporation,or payment and financial services throug

226、h PayPay Corporation.a.Consumer business(a)Mobile services and sales of mobile devicesThe Company provides mobile services,which consist of voice call services,data transmission services,and related optional services to subscribers,and sells mobile devices to customers.In providing mobile services,s

227、ales revenue is mainly generated from basic monthly charges,mobile services,and other fees.Revenues from the sales of mobile devices are generated from the sales of mobile devices and accessories to subscribers or dealers.The business flow of the above transactions consists of“Indirect”sales,where t

228、he Company sells mobile devices to dealers and enters into mobile communications service contracts with subscribers through dealers,and“Direct”sales,where the Company sells mobile devices to subscribers and enters into mobile communications service contracts directly with subscribers.In mobile servi

229、ces,the contractual period is defined as the period in which the parties to the contract have present enforceable rights and obligations based on the terms and conditions of the contract with the subscriber.In addition,if the Company determines that an option to renew the contract is granted to the

230、subscriber and the option provides a“material right”to the subscriber,it identifies the option as a separate performance obligation.As a practical alternative to estimating the stand-alone selling price of an option identified as a separate performance obligation,the Company allocates the transactio

231、n price to the mobile communications services related to the option by reference to the mobile communications services expected to be provided and the corresponding expected consideration.SoftBank Group Corp.Financial Report 202421Basic charges and mobile service fees are billed to subscribers on a

232、monthly basis and are generally due within one month.Mobile device payments for indirect sales are billed to dealers at the time of sale to the respective dealers and are generally due within one month.In addition,mobile device payments for direct sales can be paid in full at the time of sale or pai

233、d in monthly installment over the contract period,normally due within one month.As a result of both quantitative and qualitative analysis,the Company has determined that these transaction prices do not include significant financing components due to the timing of payments,and accordingly,they have n

234、ot been adjusted for such financing components.When the period between the revenue recognition and the payment is one year or less,the Company does not make an adjustment for significant financing components,as a practical expedient permitted by IFRS.For mobile services and sales of mobile devices,t

235、he Company is obligated to allow returns and provide refunds for a certain period of time after the inception of the contract.Return and refund obligations are estimated and deducted from transaction prices for each type of goods and services based on historical performance.The Company provides opti

236、onal additional warranty services for mobile devices.Under the contracts in which these services are provided,the services are identified as separate performance obligations,and are recognized as revenue when they are provided to subscribers.i.Indirect sales Revenues from the sales of mobile devices

237、 are recognized when mobile devices are delivered to dealers,which is when dealers are deemed to have obtained control over the mobile devices.Dealers involved in indirect sales have the primary responsibility for fulfilling contracts,carry all inventory risk,and may independently establish their ow

238、n inventory pricing.Accordingly,the Company considers that dealers involved in indirect sales act as principals.Basic monthly charges and mobile service fees are recognized as revenue over time during the contractual period because the performance obligation of mobile services is to provide a certai

239、n amount of data communications monthly to subscribers during the contractual period.Discounts on mobile communications charges are deducted from the revenues recognized from monthly mobile services.Commission fees paid to dealers related to the sales of mobile devices are deducted from sales.ii.Dir

240、ect sales For direct sales,the total amount of transaction prices is allocated to sales of mobile devices and mobile service revenue based on the ratio of their stand-alone selling prices,as the revenues from the sales of mobile devices and mobile services,including related fees,are considered to be

241、 one transaction.Discounts on mobile communications charges related to mobile service revenue are deducted from the total transaction prices.In addition,if the amount of revenue recognized at the time of sales of mobile devices exceeds the amount of consideration received from the subscribers,the di

242、fference is recognized as contract assets and subsequently transferred to trade receivables when the claim is determined as a result of the provision of mobile services.If the amount of revenue recognized at the time of sales of mobile devices is less than the amount of consideration received from t

243、he subscribers,the difference is recognized as contract liabilities,which is then reversed when the mobile services are provided,and is recognized as revenue.Stand-alone selling prices of mobile devices and mobile services are priced at their observable prices when the mobile devices and mobile serv

244、ices are sold independently to customers at the inception of the contract.The amount allocated to sales of mobile device is recognized as revenue at the time of delivery to the subscribers,representing the point in time when subscribers are considered to have obtained control of the mobile devices.A

245、mounts allocated to mobile service revenues are recognized as revenue over time during the contractual period because the performance obligation of mobile services is to provide a certain amount of data communications monthly to subscribers during the contractual period.Contract assets are included

246、in“Other current assets”in the consolidated statement of financial position.(b)Broadband servicesFor broadband services,revenues are mainly generated from basic monthly charges and telecommunications service fees primarily related to Internet connection(“revenues from broadband services”),and other

247、fees.Revenues from broadband services are recognized when services are provided to subscribers,based upon fixed monthly charges plus the fees charged for usage of the network.Activation fees are recognized as contract liabilities when received,which are then reversed when the broadband services are

248、provided,and are recognized as revenue.(c)Electricity servicesFor electricity services,revenues are mainly generated from the purchase and sale,supply and intermediation of electricity services,including Ouchi Denki.Revenues from supply of electricity(retail service)are recognized when services are

249、provided to subscribers,based upon fixed monthly charges plus the fees charged for usage of electricity.b.Enterprise business(a)Mobile services and mobile device rental servicesRevenues from mobile services mainly consist of revenues from mobile services and other fees.SoftBank Group Corp.Financial

250、Report 202422Since mobile device rental services are provided on the condition that mobile service contracts are entered into consideration arising from these transactions are allocated to lease and others based on the fair value of mobile device lease and mobile communications services.The fair val

251、ue is the price at which the mobile devices are sold individually and the price at which the mobile communications services are provided individually.Consideration allocated to other is recognized as revenues based on fixed monthly charges and the fees charged for usage of the network when services

252、are provided to subscribers.(b)Fixed-line communications servicesRevenues from fixed-line communications services mainly consist of voice telecommunications service fees and data transmission service fees.Revenues from fixed-line communications services are recognized when services are provided to s

253、ubscribers,based on fixed monthly charges and the fees charged for usage of the network.(c)Business solution and othersRevenues from business solution and others mainly consist of services,such as data center,cloud,security,global,AI,Internet of Things(“IoT”),digital marketing,and equipment sales.Re

254、venues from business solution and others are recognized when products or services are provided to subscribers,representing the point when subscribers have obtained control of the product or service,based upon the consideration receivable from subscribers.c.Distribution businessRevenues in the distri

255、bution business are mainly generated from the sales of hardware,software,and services in relation to Information and Communication Technology(“ICT”),cloud and Internet of Things(“IoT”)solutions for enterprise customers.Revenues are also driven by the sales of PC software,IoT products,and mobile devi

256、ce accessories for individual customers.Revenues in the distribution business are recognized as revenue at the time of delivery to customers,representing the point in time when the customers are deemed to have obtained control over the goods and other items.For transactions conducted by the Company

257、on behalf of third parties,revenues are presented on a net basis by excluding payment to third parties from the total consideration received from customers.d.Media&EC business(a)Media businessThe media business mainly comprises planning and sale of internet-based advertising-related services,informa

258、tion listing services,and other corporate services.Revenues in the media business mainly consist of revenues from search advertising,account advertising,display advertising,and others.i.Search advertising Revenues from search advertising are recognized based on the per-click rate set by a customer w

259、hen a visitor of the website clicks the advertisement.ii.Account advertising Account advertising mainly comprises LINE Official Accounts and LINE Sponsored Stickers.Revenues from LINE Official Accounts are recognized over time during the contractual period.Revenues from LINE Sponsored Stickers are r

260、ecognized over time during the contractual period.iii.Display advertising Display advertising comprises display advertising(reservation)and display advertising(programmatic).Revenues from display advertising(reservation)are recognized over the period in which the related advertisement is displayed.R

261、evenues from display advertising(programmatic)are recognized based on the per-click rate set by a customer when a visitor of the website clicks the advertisement on the page with the related content.Revenues from LINE VOOM and LINE NEWS advertising are recognized upon the fulfilment of certain actio

262、ns under contracts with advertisers.iv.Others Others mainly comprise LYP Premium.Revenues from LYP Premium are recognized over the period during which the membership is valid.(b)Commerce businessThe commerce business mainly comprises sales of products and planning and providing of services,which are

263、 provided via the internet for small to medium-sized businesses and individual customers.Revenues in the commerce business consist of revenues from the sales of goods by the ASKUL Group,e-commerce-related services,such as ZOZOTOWN and Yahoo!auction.i.Sales of goods by the ASKUL Group ASKUL Group eng

264、ages in the business of selling office-related products and other goods.ASKUL Groups major customers are small-and medium-sized companies,as well as individual users.Revenues from the sale of goods are recognized when a customer obtains control of the goods,that is,at the time the customer has the a

265、bility to direct the use of the goods and to obtain substantially all of the remaining economic benefits from the goods.SoftBank Group Corp.Financial Report 202423 ii.ZOZOTOWN ZOZO Inc.operates ZOZOTOWN and sells goods on a consignment basis to individual users as an agent of each brand opening a st

266、ore as a tenant in ZOZOTOWN.Consignment sales commission based on gross merchandise value multiplied by sales commission rate is recognized as revenue when the customer obtains control of the goods.iii.Yahoo!auction Yahoo provides online auction services through Yahoo!auction to individual users and

267、 corporations.System usage fees charged to the sellers according to auction proceeds are recognized as revenue when the auction transactions are completed.e.Financial businessRevenues in the financial business mainly consist of merchant fees from providing QR code payment services and merchant fees

268、from credit-related services.The merchant fees from providing QR code payment services are recognized as revenue at the completion of the settlement,assuming that the merchant has received the payment service at the point of sale of goods or other transactions.Among the credit card-related services,

269、the merchant fees from providing payment services are recognized as revenue at the time of card usage,which is when the performance obligation is satisfied.Additionally,fees generated from revolving payments,installment payments,and cash advance services provided to card members are recognized as re

270、venue over the period of interest attributed in accordance with IFRS 9“Financial Instruments.”Arm segmentIn the Arm segment,revenue is mainly generated from licensing Arms IP to customers and royalties arising from the subsequent sale of licensees chips that contain Arms technology.a.License and oth

271、er revenue(a)Intellectual Property licenseArm generally licenses IP under non-exclusive license agreements that provide usage rights for specific applications for a finite or perpetual term.These licenses are made available electronically to address the customer-specific business requirements.These

272、arrangements generally have distinct performance obligations that consist of transferring the licensed IPs,version extensions of architecture IP or releases of IPs,and support services.Support services consist of a stand-ready obligation to provide technical support,patches,and bug fixes over the su

273、pport term.Revenue allocated to the IP license is recognized at a point in time upon the delivery or beginning of license term,whichever is later.Revenue allocated to distinct version extensions of architecture IP or releases of IP,excluding when-and-if-available minor updates over the support term,

274、are recognized at a point in time upon the delivery or beginning of license term,whichever is later.Certain license agreements provide customers with the right to access a library of current and future IPs on an unlimited basis over the contractual period depending on the terms of the applicable con

275、tract.These licensing arrangements of the customer and the extent of use in any given period does not diminish the remaining performance obligation.The contract consideration related to these arrangements is recognized ratably over the term of the contract in line with when the control of the perfor

276、mance obligations is transferred.(b)Software sales,including development systemsSales of software,including development systems,which are not specifically designed for a given license(such as off-the-shelf software),are recognized upon delivery when control has been transferred and customer can begi

277、n to use and benefit from the license.(c)Professional servicesServices(such as training and professional and design services)that Arm provides,which are not essential to the functionality of the IP,are separately stated and priced in the contract and accounted for separately.Training revenue is reco

278、gnized as services are performed.Revenue from professional and design services are recognized over time using the input method based on engineering labor hours expended to date relative to the estimated total effort required.For such professional and design services,Arm has an enforceable right to p

279、ayment for performance completed to date,which includes a reasonable profit margin and the performance of such services do not create an asset with an alternative use.(d)Support and maintenanceSupport and maintenance is a stand-ready obligation to the customer that is both provided and consumed simu

280、ltaneously.Revenue is recognized on a straight-line basis over the period for which support and maintenance is contractually agreed pursuant to the license.b.Royalty revenueFor certain IP license agreements,royalties are collected on products that incorporate the Arms IP.Royalties are recognized on

281、an accrual basis in the quarter in which the customer ships their products,based on the Arms technology that it contains.This estimation process for the royalty revenue accrual is based on a combination of methodologies,including the use of historical sales trends,as well as data and forecasts from

282、third-party industry research providers.Data considered includes revenue,unit shipments,average selling price,product mix,market share and market penetration.Adjustments to revenue are required in subsequent periods to reflect changes in estimates as new information becomes available,primarily resul

283、ting from actual amounts subsequently reported by the licensees in the period following the accrual.SoftBank Group Corp.Financial Report 202424(17)Costs to obtain contractsThe Company recognizes the costs that would not have been incurred if the telecommunications service contract had not been obtai

284、ned and that are expected to be recovered,as assets from the costs to obtain contracts.The Company capitalizes mainly the sales commissions that the Company pays to dealers for obtaining and maintaining mobile service contracts with subscribers.The costs to obtain contracts are amortized on a straig

285、ht-line basis over the period(normally two to four years)during which goods or services related to such costs directly are expected to be provided.At each fiscal year-end and quarterly period-end,the Company assesses the impairment relating to the capitalized costs to obtain such contracts.Using a p

286、ractical expedient,the Company accounts for the costs to obtain contracts as expenses when incurred if the amortization period of the costs to obtain contracts is one year or less.(18)Income taxIncome tax expense is composed of current and deferred taxes,and recognized in profit or loss,except for t

287、axes related to business combinations and items that are recognized in other comprehensive income or directly in equity.Current tax is measured at the amount expected to be paid to or recovered from the taxation authorities,using the tax rates and tax laws that have been enacted or substantively ena

288、cted by the end of the fiscal year.Deferred tax assets are recognized to the extent that it is probable that taxable profits will be available against which deductible temporary differences,net operating loss carryforwards and tax credit carryforwards can be utilized.The recoverability of deferred t

289、ax assets is reassessed at the end of the fiscal year.Deferred tax assets are not recognized for the taxable temporary differences that arise from the initial recognition of assets and liabilities in a transaction that is not a business combination,affects neither accounting profit nor taxable profi

290、t and does not give rise to equal taxable and deductible temporary differences.Deferred tax assets are recognized for deductible temporary differences associated with investments in subsidiaries and associates when it is probable that the temporary difference will reverse in the foreseeable future a

291、nd when there will be sufficient taxable profits against which the temporary differences can be utilized.Deferred tax liabilities are basically recognized for taxable temporary differences,except for:temporary differences that arise from the initial recognition of assets and liabilities in a transac

292、tion that is not a business combination,affects neither accounting profit nor taxable profit and does not give rise to equal taxable and deductible temporary differences;taxable temporary differences arising from the initial recognition of goodwill;and taxable temporary differences associated with i

293、nvestments in subsidiaries and associates,where the Company is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future.Deferred tax assets and liabilities are measured at the tax rates that are expected to a

294、pply to the period when the asset is realized or the liability is settled,based on tax laws that have been enacted or substantively enacted by the end of the fiscal year.Deferred tax assets and liabilities are offset if the Company has a legally enforceable right to set-off current tax assets agains

295、t current tax liabilities,and income taxes are levied by the same taxation authority on the same taxable entity.In accordance with the temporary relief under the IAS 12(Amendments),the Company has applied exceptions for recognition and information disclosure regarding the deferred tax assets and lia

296、bilities related to income taxes arising from the implementation of the Pillar Two model rules.(19)Earnings per shareBasic earnings per share is calculated by dividing net income attributable to owners of the parent by the weighted-average number of ordinary shares(after adjusting for treasury stock

297、s)outstand-ing for the period.Diluted earnings per share assumes full conversion of the issued potential stocks having a dilutive effect,with an adjustment for net income attributable to owners of the parent and the weighted-average number of ordinary shares(after adjusting for treasury stocks)outst

298、anding for the period.SoftBank Group Corp.Financial Report 202425(20)Material accounting policies for the SoftBank Vision Funds segmentFor SVF1,SVF2,and LatAm Funds,the Company applies the following accounting policies.a.Consolidation of SVF1,SVF2,and LatAm Funds by the CompanySVF1 and SVF2 are limi

299、ted partnerships established by their respective general partners which are wholly-owned subsidiaries of the Company(SVF2 owns limited liability companies including SVF2 LLC)and are qualified as structured entities by their forms of organization.SVF1 and SVF2 are consolidated by the Company for the

300、following reasons.As of March 31,2024,SVF1 and SVF2 are managed by SBIA and SBGA,respectively,which are wholly-owned subsidiaries of the Company in the UK.SVF1 and SVF2 make investment decisions through each investment committee,which was established in SBIA and SBGA,respectively.As such,the Company

301、 has power as defined under IFRS 10“Consolidated Financial Statements”over SVF1 and SVF2.Furthermore,SBIA receives performance fees and SBGA receives performance-linked management fees.The Company receives distributions attributable to limited partners based on the investment performance as returns

302、from SVF1 and SVF2.The Company has the ability to affect those returns through its power over SVF1 and SVF2,and therefore,the Company is deemed to have control as stipulated in IFRS 10“Consolidated Financial Statements”over SVF1 and SVF2.LatAm Funds is a limited liability company in which a wholly-o

303、wned subsidiary of the Company invests(LatAm Funds owns limited partnerships and the other forms of entities).LatAm Funds is consolidated by the Company as it holds more than one-half of the voting rights of LatAm Funds.Inter-company transactions,such as management fees and performance fees to SBIA

304、paid or to be paid,as applicable,from SVF1,and management fees,performance-linked management fees,and performance fees to SBGA paid or to be paid,as applicable,from SVF2 or LatAm Funds,are eliminated in consolidation.b.Portfolio company investments made by SVF1,SVF2,and LatAm Funds(a)Investments in

305、subsidiariesOf the portfolio company investments made by SVF1,SVF2,and LatAm Funds,the portfolio companies that the Company is deemed to control under IFRS 10“Consolidated Financial Statements”are subsidiaries of the Company.Accordingly,their results of operations,assets,and liabilities are included

306、 in the Companys consolidated financial statements.Gain and loss on investments in the subsidiaries of the Company which are recognized in SVF1,SVF2,and LatAm Funds are eliminated in consolidation.(b)Investments in associates and joint venturesOf the portfolio company investments made by SVF1,SVF2,a

307、nd LatAm Funds,the portfolio companies over which the Company has significant influence under IAS 28“Investments in Associates and Joint Ventures”are associates of the Company,and the portfolio companies that are joint ventures of the Company when,as defined under IFRS 11“Joint Arrangements,”SVF1,SV

308、F2,and LatAm Funds have joint control with other investors under contractual arrangements and the investors have rights to the net assets of the arrangement.The investments in associates and joint ventures of the Company made by SVF1,SVF2,and LatAm Funds are accounted for as financial assets at FVTP

309、L in accordance with paragraph 18 of IAS 28“Investments in Associates and Joint Ventures”and presented as“Investments from SVF(FVTPL)”in the consolidated statement of financial position.The payments for these investments are presented as“Payments for acquisition of investments by SVF”and the proceed

310、s from sales of these investments are presented as“Proceeds from sales of investments by SVF”under cash flows from investing activities in the consolidated statement of cash flows.If the investments in associates and joint ventures that were transferred from SoftBank Group Corp.and its subsidiaries

311、to SVF1,SVF2,or LatAm Funds were accounted for using the equity method prior to the transfer,these investments continue to be accounted for using the equity method after the transfer to SVF1,SVF2,or LatAm Funds and presented as“Investments accounted for using the equity method”in the consolidated st

312、atement of financial position.Gain and loss on the investments which were recognized in SVF1,SVF2,or LatAm Funds are eliminated in consolidation and gain and loss on the investments accounted for using the equity method are presented as“Income(loss)on equity method investments”in the consolidated st

313、atement of profit or loss.(c)Other investmentsInvestments other than those in associates or joint ventures of the Company made by SVF1,SVF2,and LatAm Funds are accounted for as financial assets at FVTPL.The presentation of these investments in the consolidated statement of financial position and the

314、 consolidated statement of cash flows is the same as the above“(b)Investments in associates and joint ventures.”c.Contribution from limited partners in SVF1 and SVF2,and investors in LatAm Funds,SVF2 LLC,and SLA LLC(collectively“SVF Investors”)(a)Contribution from SVF Investors other than the Compan

315、y(“Third-Party Investors,”and each a“Third-Party Investor”)The interests attributable to Third-Party Investors in SVF1,SVF2,and LatAm Funds are classified as financial liabilities,“Third-party interests in SVF”in the consolidated statement of financial position,due to the predetermined finite life a

316、nd contractual payment provision to each of Third-Party Investors at the end of the finite life within the constitutional agreements relating to SVF1,SVF2,and LatAm Funds.The liabilities are classified as“financial liabilities measured at amortized cost”upon initial recognition.The carrying amounts

317、attributable to Third-Party Investors represent the amounts that would be distributed in accordance with the constitutional SoftBank Group Corp.Financial Report 202426agreements in a theoretical liquidation scenario at the end of each quarter.Third-Party Investor in SVF2 and LatAm Funds is entitled

318、to make full or partial payments of its investments and related adjustments at any point in time,at its discretion,from the date it became an investor in SVF2 LLC or SLA LLC to the end of company life of SVF2 LLC or SLA LLC,and as of March 31,2024,the Company has recognized receivables from Third-Pa

319、rty Investor.The receivables are included in“Other financial assets(non-current)”in the consolidated statement of financial position.“Third-party interests in SVF”fluctuates due to the results of SVF1,SVF2,and LatAm Funds in addition to contributions from Third-Party Investors,and distributions and

320、repayments of investments to Third-Party Investors.The fluctuations due to the results of SVF1,SVF2,and LatAm Funds are presented as“Change in third-party interests in SVF”in the consolidated statement of profit or loss.Contributions from Third-Party Investors are included in“Contributions into SVF

321、from third-party investors”under cash flows from financing activities in the consolidated statement of cash flows.The distributions and repayments of investments to Third-Party Investors are included in“Distribution/repayment from SVF to third-party investors”under cash flows from financing activiti

322、es in the consolidated statement of cash flows.No cash contributions into SVF2 and LatAm Funds from Third-Party Investors and no cash distributions/repayments from SVF2 and LatAm Funds to Third-Party Investors were made as of March 31,2024.Uncalled committed capital from Third-Party Investors is not

323、 subject to IFRS 9“Financial Instruments,”and,therefore,such amount is not recorded in the consolidated statement of financial position.(b)Contribution from the CompanyContributions to SVF1,SVF2,and LatAm Funds from the Company are eliminated in consolidation.4.Changes in accounting policiesThe Comp

324、any has adopted the following standard and interpretation for the fiscal year ended March 31,2024.Standard/interpretationOutline of the new/amended standardsIAS 12(Amendments)Income Taxes(Amendments in May 2021)Clarification of the deferred tax accounting related to assets and liabilities arising fr

325、om a single transaction.There are no significant impacts on the consolidated financial statements(except for the notes to the consolidated financial statements)for the fiscal year ended March 31,2023 and 2024,due to the adoption of the IAS 12(Amendments)“Income Taxes.”As a result of the adoption of

326、the amended standard retrospectively,the Company recognized the same amount of deferred tax assets and deferred tax liabilities for assets and liabilities arising from a single transaction,which were restated in“(3)Movement of deferred tax assets and deferred tax liabilities”under“Note 21.Income tax

327、es”for the fiscal year ended March 31,2023.There are no other significant impacts on the consolidated financial statements of the Company due to the adoption of new accounting standards or interpretations.SoftBank Group Corp.Financial Report 2024275.Significant judgments and estimatesIn preparing co

328、nsolidated financial statements under IFRS,management makes judgments,estimates,and assumptions that affect the application of accounting policies and carrying amounts of assets,liabilities,revenue,and expenses.These estimates and underlying assumptions are based on manage-ments best judgments,throu

329、gh their evaluation of various factors that were considered reasonable as of the period-end,based on historical experience and by collecting available information.By the nature of its estimates or assumptions,however,actual results in the future may differ from those projected estimates or assumptio

330、ns.Estimates and underlying assumptions are continuously reviewed.Revisions to accounting estimates are recognized in the period in which the estimate is revised as well as in the future periods.Significant judgments,estimates and assumptions that affect the amounts recognized in the Companys consol

331、i-dated financial statements are as follows:significant judgments of whether an entity is controlled by the Company in determining the scope of consolidation(1)and(20)in“Note 3.Material accounting policies”and“Note 18.Major subsidiaries”);significant judgments for the determination of the scope and

332、accounting treatment of associates(1)and(20)in“Note 3.Material accounting policies”and“Note 19.Investments accounted for using the equity method”);estimates for impairment of investments accounted for using the equity method(1)in“Note 3.Material accounting policies”and“Note 41.Other gain(loss)”);fai

333、r value measurement of financial assets at FVTPL,debt financial assets at FVTOCI,and equity financial assets at FVTOCI(4)and(20)in“Note 3.Material accounting policies,”“Note 7.SoftBank Vision Funds business,”(2)in“Note 29.Fair value of financial instruments,”and“Note 38.Gain on investments”);estimates for impairment of financial assets measured at amortized cost(4)in“Note 3.Material accounting pol