F Share of profits of associates and joint ventures J Finance expense G Other income K Income tax expense H Other expense I Finance income N Fair value movements on available-for-sale financial assets M Foreign currency translation adjustments Astellas Pharma Inc.  _ Annual Report 2014 158 (Recognition and measurement) Under Japanese GAAP, unquoted equity shares are stated at  cost calculated mainly by using the moving average method.  However, under IFRS, unquoted equity shares are measured at  fair value. As a result, the amount of “Fair value movements on  available-for-sale financial assets” has decreased. (Presentation) “Interest income” and “Dividend income” included in non- operating income under Japanese GAAP have been included  in “Finance income” under IFRS. (Recognition and measurement) “Foreign currency translation adjustments” have increased due  to the effects of foreign currency translations of reconciliations  incurred after the date of transition to IFRS. Under IFRS, research and development expenses arising  mainly from in-licensing agreements satisfying certain classifi- cation requirements are recognised as intangible assets, but  research and development expenses are charged directly to  profit or loss when incurred under Japanese GAAP. For certain  intangible assets additionally recognised upon adoption of  IFRS, the carrying amount is reduced to the recoverable  amount when the discontinuation of the development is  decided during the period, and the difference is recognised as  impairment loss in the same period. As a result, the amount of  “Other expense” has increased by ¥9,832 million. In addition, certain items of loss included in “Other” as non- operating expenses or special losses under Japanese GAAP  have been included in “Other expense” under IFRS. (Recognition and measurement) Certain losses arising from settlement of litigations included  in “Selling, general and administrative expenses” under Japanese  GAAP have been included in “Other expense” under IFRS. “Loss on sales and disposal of property, plant and equipment”  and “Impairment losses of non-current assets” presented as  special losses under Japanese GAAP have been included in  “Other expense” under IFRS. (Presentation) Under Japanese GAAP, actuarial gains and losses associated  with retirement benefits are amortised mainly on a straight-line  basis from the following year in which they were incurred over  the average remaining service years of employees. However,  under IFRS, the Group fully recognises the actuarial gains  and losses when they are incurred in other comprehensive  income as “Remeasurements of defined benefit plans”. As a  result, the amount of “Remeasurements of defined benefit  plans” has deceased. (Recognition and measurement) L Remeasurements of defined benefit plans In addition, “Income tax expense” has decreased due to the  temporary differences resulting from the reconciliation to IFRS. Under Japanese GAAP, the tax effect associated with the  elimination of unrealised gain or loss is calculated using the  effective tax rate of the seller, while under IFRS, it is calculated  using the effective tax rate of the purchaser. As a result, the  amount of “Income tax expense” has decreased. (Recognition and measurement) In addition, certain items of income included in “Other” as  non-operating income or special gains under Japanese GAAP  have been included in “Other income” under IFRS. “Gain on sales of property, plant and equipment” included in  special gains under Japanese GAAP has been included in  “Other income” under IFRS. Also, certain items of expenses included in “Other” as non- operating expenses or special losses under Japanese GAAP  have been included in “Finance expense” under IFRS. “Interest expense” included in non-operating expenses under  Japanese GAAP has been included in “Finance expense”  under IFRS. “Exchange gain” included in non-operating income under  Japanese GAAP has been included in “Other income”  under IFRS. (Presentation) (Presentation) Profits or losses associated with certain partnerships included  in “Sales” under Japanese GAAP have been included in “Share  of profits of associates and joint ventures” under IFRS. “Share of profits of associates and joint ventures” included in  non-operating income under Japanese GAAP has been  presented separately under IFRS. In addition, certain items of income included in “Other” as  non-operating income or special gains under Japanese GAAP  have been included in “Finance income” under IFRS. “Gain on sale of investment securities” included in special  gains under Japanese GAAP has been included in “Finance  income” under IFRS. (Presentation)