SMFG Notes to Consolidated Financial Statements As a result, income before income taxes and minority  interests increased by ¥19,251 million as compared with  the former method. Unification of Accounting Policies Applied to Associates  Accounted for Using the Equity Method” (ASBJ Practical  Issues Task Force No. 24, issued on March 10, 2008) because  they became effective for the fiscal years beginning on or after  April l, 2010. This accounting change had no impact on the  consolidated financial statements. “Accounting Standard for Presentation of Comprehensive  Income” (ASBJ Statement No. 25, issued June 30, 2010)  became effective for consolidated financial statements for the  fiscal years ending on or after March 31, 2011. Accordingly,  SMFG has applied this standard and presents “Valuation and  transaction adjustments” and “Total valuation and transaction  adjustments” as of and for the fiscal year ended March 31,  2010 as “Accumulated other comprehensive income” and  “Total accumulated other comprehensive income” as of and for  the fiscal year ended March 31, 2011, respectively. “Accounting Standard for Asset Retirement Obligations”  (ASBJ Statement No. 18, issued on March 31, 2008) and  “Guidance on Accounting Standard for Asset Retirement  Obligations” (ASBJ Guidance No. 21, issued on March 31,  2008) became effective for fiscal years beginning on or after  April 1, 2010. Accordingly, income before income taxes  and minority interests decreased by ¥4,215 million ($51  million) compared with the previous accounting method. On June 22, 2009, SMFG issued 219,700 thousand new  shares of common stock at ¥3,766 per share (issue price) for  final allocation by underwriters at ¥3,928 per share (offer  price). Furthermore, in connection with the over-allotment  of 15,300 thousand shares of common stock offered for sale  at ¥3,928 per share (sales price) in the public offering, SMFG  issued 8,931 thousand new shares of common stock at ¥3,766  per share (issue price) through third-party allocation to the  underwriter who conducted the over-allotment on July 27,  2009. The purchase agreement for the offering prescribes that  the total amount of issue price be treated as the total amount  of subscription price and no underwriting commission be  paid. Accordingly, other expenses do not include the amount  equivalent to the underwriting commission for the offering  in the amount of ¥37,038 million. Out of the issue price per  share, ¥1,883 is accounted for as capital stock and ¥1,883 as  capital surplus. On January 27, 2010, SMFG issued 340,000 thousand new  shares of common stock at ¥2,702.81 per share (issue price)  for final allocation by underwriters at ¥2,804 per share (offer  price). Furthermore, in connection with the over-allotment  of 20,000 thousand shares of common stock offered for sale  at ¥2,804 per share (sales price) in the public offering, SMFG  issued 20,000 thousand new shares of common stock at  ¥2,702.81 per share (issue price) through third-party alloca- tion to the underwriter who conducted the over-allotment on  February 10, 2010. The purchase agreement for the offering  prescribes that the total amount of issue price be treated as the  total amount of subscription price and no underwriting com- mission be paid. Accordingly, other expenses do not include  the amount equivalent to the underwriting commission for the  offering in the amount of ¥36,428 million. Out of the issue  price per share, ¥1,351.405 is accounted for as capital stock  and ¥1,351.405 as capital surplus. Equity of ¥11,075 million attributable to SMFG, which  a consolidated subsidiary and an equity method affiliated  company of SMFG recorded as earnings under the purchase  agreement for the offering, was accounted for as “Capital  surplus.” SMFG has applied “Accounting Standard for Equity Method  of Accounting for Investments” (ASBJ Statement No. 16,  issued on March 10, 2008) and “Practical Solution on  In the fiscal year ended March 31, 2010, “Other, net”  included “Net change in reserve for point service program”  and “Net change in reserve for loss on interest repayment,”  a decrease of ¥879 million and an increase of ¥1,040  million, respectively. From the fiscal year ended March 31,  2011, they are presented individually because the amounts  have become significant. SMFG presents “Income before minority interests” on  the consolidated statement of income from the fiscal year  ended March 31, 2011 because “Cabinet Office Ordinance  of Partial Amendment to Regulation for Terminology,  Forms and Preparation of Financial Statements” (Cabinet  Office Ordinance No. 5, March 24, 2009) became effective  for fiscal years beginning on or after April 1, 2010. “Other liabilities” as of March 31, 2010, included “Reserve  for point service program” of ¥14,091 million and “Reserve  for loss on interest repayment” of ¥9,735 million. From  the fiscal year ended March 31, 2011, they are presented  individually because the amounts have become significant. “Accounting Standard for Business Combinations”  (ASBJ Statement No. 21, revised on December 26,  2008), “Accounting Standard for Consolidated Financial  Statements” (ASBJ Statement No. 22, issued on December  26, 2008), “Partial Amendment to Accounting Standard  for Research and Development Costs” (ASBJ Statement  No. 23, issued on December 26, 2008), “Accounting  Standard for Business Divestitures” (ASBJ Statement  No. 7, revised on December 26, 2008), “Accounting  Standard for Equity Method of Accounting for Investments”  (ASBJ Statement No. 16, announced on December  26, 2008) and “Guidance on Accounting Standard for  Business Combinations and Accounting Standard for  Business Divestitures” (ASBJ Guidance No. 10, revised on  December 26, 2008) became effective for fiscal years begin- ning on or after April 1, 2010, and SMFG has applied  them from the fiscal year ended March 31, 2011. (b) Accounting standard for asset retirement obligations (25) Accounting standard for presentation of comprehensive  income (c) Accounting standard for business combinations (26) Issuance of new shares (23) Changes in presentation (a) Consolidated balance sheets (b) Consolidated statements of income (c) Consolidated statements of cash flows (24) Accounting standard for equity method of accounting for  investments SMFG  2011 82