First-time adoption (Tables)

12 Months Ended

Mar. 31, 2022

Summary of Reconciliation of Equity Pursuant to First Time Adoption of IFRS

Reconciliation of equity at the date of transition to IFRS (April 1, 2020)


Accounts under U.S. GAAP	Yen in millions												Accounts under IFRS
Accounts under U.S. GAAP	U.S. GAAP*			Reclassification			Recognition and measurement differences			IFRS		Note	Accounts under IFRS
ASSETS													ASSETS
Current assets:													Current assets:
Cash and cash equivalents		1,512,357			—			166			1,512,523		Cash and cash equivalents
Marketable securities		1,847,772			(1,847,772	)		—			—	a
		—			327,092			—			327,092	a,f	Investments and advances in the Financial Services segment
Notes and accounts receivable, trade and contract assets		1,028,793			(1,028,793	)		—			—	b
		—			1,195,228			(894	)		1,194,334	b,c	Trade and other receivables, and contract assets
Allowance for credit losses		(26,153	)		26,153			—			—	b
Inventories		558,452			—			1,327			559,779		Inventories
Other receivables		188,076			(188,076	)		—			—	c
		—			135,265			217			135,482	d	Other financial assets
Prepaid expenses and other current assets		594,009			(153,473	)		1,438			441,974	d	Other current assets

Total current assets		5,703,306			(1,534,376	)		2,254			4,171,184		Total current assets

													Non-current assets:

Film costs		458,853			(458,853	)		—			—	e

Investments and advances:
Affiliated companies		207,922			(608	)		(3,023)			204,291		Investments accounted for using the equity method
Securities investments and other		12,526,990			(12,526,990	)		—			—	f
Allowance for credit losses		(6,341	)		6,341			—			—
		—			13,906,535			2,445,750			16,352,285	a,f,D	Investments and advances in the Financial Services segment
Property, plant and equipment:
Land		81,482			(81,482	)		—			—
Buildings		659,556			(659,556	)		—			—
Machinery and equipment		1,725,720			(1,725,720	)		—			—
Construction in progress		76,391			(76,391	)		—			—

Less — Accumulated depreciation		1,634,505			(1,634,505	)		—			—

		—			921,513			(4,315	)		917,198		Property, plant and equipment

Other assets:
Operating lease right-of-use assets		359,510			(359,510	)		—			—	g
Finance lease right-of-use assets		33,100			(33,100	)		—			—	g
		—			376,998			(3,716	)		373,282	g	Right-of-use assets
Intangibles, net		906,310			(906,310	)		—			—	e
Goodwill		783,888			—			(92,959	)		690,929	C	Goodwill
		—			991,611			1,033			992,644	e	Content assets
		—			373,552			3,948			377,500	e	Other intangible assets
Deferred insurance acquisition costs		600,901			—			(412,997	)		187,904	E	Deferred insurance acquisition costs
Deferred income taxes		210,417			87			(171	)		210,333		Deferred tax assets
		—			298,469			23,252			321,721	f,h,D	Other financial assets
Other		339,284			(154,853	)		(16,636	)		167,795	h,B	Other non-current assets

		17,329,478			1,526,238			1,940,166			20,795,882		Total non-current assets

Total assets		23,032,784			(8,138	)		1,942,420			24,967,066		Total assets


Accounts under U.S. GAAP	Yen in millions													Accounts under IFRS
Accounts under U.S. GAAP	U.S. GAAP*			Reclassification			Recognition and measurement differences			IFRS			Note	Accounts under IFRS
LIABILITIES														LIABILITIES
Current liabilities:														Current liabilities:
Short-term borrowings		810,176			13,869			—			824,045			Short-term borrowings
Current portion of long-term debt		29,807			69,116			—			98,923		i	Current portion of long-term debt
Current portion of long-term operating lease liabilities		68,942			(68,942	)		—			—		i
Notes and accounts payable, trade		380,810			(380,810	)		—			—		j
		—			1,340,573			(30,037	)		1,310,536		j,k,m	Trade and other payables
Accounts payable, other and accrued expenses		1,630,197			(1,630,197	)		—			—		k
Deposits from customers in the banking business		2,440,783			(93,396	)		—			2,347,387		l	Deposits from customers in the banking business
Accrued income and other taxes		145,996			(60,650	)		—			85,346			Income taxes payables
		—			163,007			—			163,007		k	Participation and residual liabilities in the Pictures segment
		—			56,152			—			56,152		k,m	Other financial liabilities
Other		733,732			527,859			2,353			1,263,944		k,m	Other current liabilities

Total current liabilities		6,240,443			(63,419	)		(27,684	)		6,149,340			Total current liabilities

														Non-current liabilities:
Long-term debt		634,966			305,871			(1,807	)		939,030		i	Long-term debt
Long-term operating lease liabilities		314,836			(314,836	)		—			—		i
Accrued pension and severance costs		324,655			4,355			611			329,621		B	Defined benefit liabilities
Deferred income taxes		548,034			87			493,035			1,041,156		F	Deferred tax liabilities
Future insurance policy benefits and other		6,246,047			—			273,530			6,519,577		E	Future insurance policy benefits and other
Policyholders’ account in the life insurance business		3,642,271			—			(2,261	)		3,640,010		E	Policyholders’ account in the life insurance business
		—			122,706			(3,004	)		119,702		n	Participation and residual liabilities in the Pictures segment
		—			146,834			—			146,834		l,n,o	Other financial liabilities
Other		289,285			(201,969	)		4			87,320		n	Other non-current liabilities

		12,000,094			63,048			760,108			12,823,250			Total non-current liabilities

Total liabilities		18,240,537			(371	)		732,424			18,972,590			Total liabilities

Redeemable noncontrolling interest		7,767			(7,767	)		—			—		o

EQUITY														EQUITY
Sony Group Corporation’s stockholders’ equity:														Sony Group Corporation’s stockholders’ equity:
Common stock		880,214			—			—			880,214			Common stock
Additional paid-in capital		1,289,719			—			7,835			1,297,554			Additional paid-in capital
Retained earnings		2,765,187			—			(815,490	)		1,949,697		G	Retained earnings
Accumulated other comprehensive income		(580,980	)		—			1,560,456			979,476		A,B,D E,F	Accumulated other comprehensive income
Treasury stock, at cost		(232,503	)		—			—			(232,503	)		Treasury stock, at cost

		4,121,637			—			752,801			4,874,438			Equity attributable to Sony Group Corporation’s stockholders

Noncontrolling interests		662,843			—			457,195			1,120,038		F	Noncontrolling interests

Total equity		4,784,480			—			1,209,996			5,994,476			Total equity

Total liabilities and equity		23,032,784			(8,138	)		1,942,420			24,967,066			Total liabilities and equity

*	“U.S. GAAP” represents the consolidated financial statements under U.S. GAAP for the fiscal year ended March 31, 2020, adjusted for the adoption of the Accounting Standards Updates issued by the Financial Accounting Standards Board effective as of April 1, 2020.

Reconciliation of equity as of March 31, 2021


Accounts under U.S. GAAP	Yen in millions												Accounts under IFRS
Accounts under U.S. GAAP	U.S. GAAP			Reclassification			Recognition and measurement differences			IFRS		Note	Accounts under IFRS
ASSETS													ASSETS
Current assets:													Current assets:
Cash and cash equivalents		1,786,982			—			—			1,786,982		Cash and cash equivalents
Marketable securities		2,902,438			(2,902,438	)		—			—	a,p
		—			412,016			(34	)		411,982	a,f	Investments and advances in the Financial Services segment
Notes and accounts receivable, trade and contract assets		1,099,300			(1,099,300	)		—			—	b
		—			1,366,991			(1,498	)		1,365,493	b,c	Trade and other receivables, and contract assets
Allowance for credit losses		(29,406	)		29,406			—			—	b
Inventories		637,391			—			(723	)		636,668		Inventories
Other receivables		283,499			(283,499	)		—			—	c
		—			117,522			160			117,682	d	Other financial assets
Prepaid expenses and other current assets		538,540			(141,517	)		(813	)		396,210	d	Other current assets

Total current assets		7,218,744			(2,500,819	)		(2,908	)		4,715,017		Total current assets

													Non-current assets:

Film costs		459,426			(459,426	)		—			—	e

Investments and advances:
Affiliated companies		226,218			(1,132	)		—			225,086		Investments accounted for using the equity method
Securities investments and other		14,046,196			(14,046,196	)		—			—	f
Allowance for credit losses		(8,419	)		8,419			—			—
		—			15,639,456			1,657,090			17,296,546	a,f,D	Investments and advances in the Financial Services segment
Property, plant and equipment:
Land		79,557			(79,557	)		—			—
Buildings		683,249			(683,249	)		—			—
Machinery and equipment		1,748,961			(1,748,961	)		—			—
Construction in progress		100,728			(100,728	)		—			—

Less — Accumulated depreciation		1,627,061			(1,627,061	)		—			—

		—			994,676			(4,135	)		990,541		Property, plant and equipment

Other assets:
Operating lease right-of-use assets		337,322			(337,322	)		—			—	g
Finance lease right-of-use assets		39,772			(39,772	)		—			—	g
		—			365,641			(7,607	)		358,034	g	Right-of-use assets
Intangibles, net		996,305			(996,305	)		—			—	e
Goodwill		827,149			(398	)		(100,642	)		726,109	C	Goodwill
		—			1,062,865			(318	)		1,062,547	e	Content assets
		—			392,862			(1,807	)		391,055	e	Other intangible assets
Deferred insurance acquisition costs		657,420			—			(33,434	)		623,986	E	Deferred insurance acquisition costs
Deferred income taxes		207,470			(2,649	)		10,848			215,669		Deferred tax assets
		—			663,105			32,659			695,764	f,h,D	Other financial assets
Other		361,803			(137,916	)		(16,398	)		207,489	h,B	Other non-current assets

		19,136,096			2,120,474			1,536,256			22,792,826		Total non-current assets

Total assets		26,354,840			(380,345	)		1,533,348			27,507,843		Total assets


Accounts under U.S. GAAP	Yen in millions													Accounts under IFRS
Accounts under U.S. GAAP	U.S. GAAP			Reclassification			Recognition and measurement differences			IFRS			Note	Accounts under IFRS
LIABILITIES														LIABILITIES
Current liabilities:														Current liabilities:
Short-term borrowings		1,187,868			13,879			—			1,201,747			Short-term borrowings
Current portion of long-term debt		131,699			73,582			125			205,406		i	Current portion of long-term debt
Current portion of long-term operating lease liabilities		73,362			(73,362	)		—			—		i
Notes and accounts payable, trade		599,569			(599,569	)		—			—		j
		—			1,632,952			(36,389	)		1,596,563		j,k,m	Trade and other payables
Accounts payable, other and accrued expenses		1,756,833			(1,756,833	)		—			—		k
Deposits from customers in the banking business		2,773,885			(91,729	)		—			2,682,156		l	Deposits from customers in the banking business
Accrued income and other taxes		165,406			(82,594	)		1,619			84,431			Income taxes payables
		—			164,005			(2,572	)		161,433		k	Participation and residual liabilities in the Pictures segment
		—			54,341			—			54,341		k,m,o	Other financial liabilities
Other		1,126,802			234,441			6,284			1,367,527		k,m,p	Other current liabilities

Total current liabilities		7,815,424			(430,887	)		(30,933	)		7,353,604			Total current liabilities

														Non-current liabilities:
Long-term debt		773,294			281,086			(744	)		1,053,636		i	Long-term debt
Long-term operating lease liabilities		290,259			(290,259	)		—			—		i
Accrued pension and severance costs		254,103			12,364			755			267,222		B	Defined benefit liabilities
Deferred income taxes		366,761			(2,649	)		452,475			816,587		F	Deferred tax liabilities
Future insurance policy benefits and other		6,599,977			—			14,608			6,614,585		E	Future insurance policy benefits and other
Policyholders’ account in the life insurance business		4,331,065			—			(2,171	)		4,328,894		E	Policyholders’ account in the life insurance business
		—			120,712			(4,175	)		116,537		n	Participation and residual liabilities in the Pictures segment
		—			139,417			—			139,417		l,n,o	Other financial liabilities
Other		294,302			(201,551	)		271			93,022		n	Other non-current liabilities

		12,909,761			59,120			461,019			13,429,900			Total non-current liabilities

Total liabilities		20,725,185			(371,767	)		430,086			20,783,504			Total liabilities

Redeemable noncontrolling interest		8,179			(8,179	)		—			—		o

EQUITY														EQUITY
Sony Group Corporation’s stockholders’ equity:														Sony Group Corporation’s stockholders’ equity:
Common stock		880,214			—			—			880,214			Common stock
Additional paid-in capital		1,486,721			—			2,876			1,489,597			Additional paid-in capital
Retained earnings		3,857,152			—			(942,649	)		2,914,503		G	Retained earnings
Accumulated other comprehensive income		(524,020	)		—			2,044,277			1,520,257		A,B,C D,E,F	Accumulated other comprehensive income
Treasury stock, at cost		(124,228	)		—			—			(124,228	)		Treasury stock, at cost

		5,575,839			—			1,104,504			6,680,343			Equity attributable to Sony Group Corporation’s stockholders

Noncontrolling interests		45,637			(399	)		(1,242	)		43,996			Noncontrolling interests

Total equity		5,621,476			(399	)		1,103,262			6,724,339			Total equity

Total liabilities and equity		26,354,840			(380,345	)		1,533,348			27,507,843			Total liabilities and equity

Summary of Reconciliation of Profit or Loss Pursuant to First Time Adoption of IFRS

Reconciliation of profit or loss for the fiscal year ended March 31, 2021


Accounts under U.S. GAAP	Yen in millions												Accounts under IFRS
Accounts under U.S. GAAP	U.S. GAAP		Reclassification			Recognition and measurement differences			IFRS			Note	Accounts under IFRS
Sales and operating revenue:													Sales and financial services revenue:
Net sales		7,252,766		79,293			1,611			7,333,670		q	Sales
Financial services revenue		1,661,520		13,512			(10,041	)		1,664,991		r,D	Financial services revenue
Other operating revenue		85,074		(85,074	)		—			—		q

		8,999,360		7,731			(8,430	)		8,998,661			Total sales and financial services revenue

Costs and expenses:													Costs and expenses:
Cost of sales		5,072,596		(3,850	)		(2,867	)		5,065,879		B	Cost of sales
Selling, general and administrative		1,469,955		61			3,138			1,473,154		B	Selling, general and administrative
Financial services expenses		1,488,963		12,503			208			1,501,674		r,D	Financial services expenses
Other operating expense, net		7,468		(720	)		7,502			14,250		C	Other operating (income) expense, net

		8,038,982		7,994			7,981			8,054,957			Total costs and expenses

Equity in net income of affiliated companies		11,487		—			64			11,551		D	Share of profit (loss) of investments accounted for using the equity method

Operating income		971,865		(263	)		(16,347	)		955,255			Operating income

Other income:
Interest and dividends		10,457		(10,457	)		—			—
Gain on equity securities, net		247,026		(247,026	)		—			—
Other		6,752		(6,752	)		—			—
		—		264,692			(180,900	)		83,792		s,D	Financial income

Other expenses:
Interest expenses		12,185		(12,185	)		—			—
Foreign exchange loss, net		16,056		(16,056	)		—			—
Net periodic benefit costs other than service cost		8,811		(8,811	)		—			—
Other		6,678		(6,678	)		—			—
		—		43,924			(2,842	)		41,082		s,B	Financial expenses

Income before income taxes		1,192,370		—			(194,405	)		997,965		H	Income before income taxes

Income taxes		995		—			(46,926	)		(45,931	)	I	Income taxes

Net income		1,191,375		—			(147,479	)		1,043,896			Net income

													Net income attributable to
Net income attributable to Sony Group Corporation’s stockholders		1,171,776		—			(142,166	)		1,029,610			Sony Group Corporation’s stockholders
Net income attributable to noncontrolling interests		19,599		—			(5,313	)		14,286			Noncontrolling interests

Summary of Reconciliation of Comprehensive Income Statement Pursuant to First time adoption of IFRS

Reconciliation of comprehensive income for the fiscal year ended March

31, 2021


Accounts under U.S. GAAP	Yen in millions													Accounts under IFRS
Accounts under U.S. GAAP	U.S. GAAP			Reclassification			Recognition and measurement differences			IFRS			Note	Accounts under IFRS
Net income		1,191,375			—			(147,479	)		1,043,896			Net income
Other comprehensive income, net of tax —														Other comprehensive income, net of tax —
														Items that will not be reclassified to profit or loss
		—			—			144,740			144,740		D	Changes in equity instruments measured at fair value through other comprehensive income
Pension liability adjustment		12,965			—			(1,410	)		11,555			Remeasurement of defined benefit pension plans
		—			—			87			87			Share of other comprehensive income of investments accounted for using the equity method
														Items that may be reclassified subsequently to profit or loss
Unrealized losses on securities		(102,492	)		—			(103,057	)		(205,549	)	D,E,F	Changes in debt instruments measured at fair value through other comprehensive income
Unrealized gains on derivative instruments		1,513			—			(1,462	)		51			Cash flow hedges
Debt valuation adjustments		(3,120	)		—			—			(3,120	)		Insurance contract valuation adjustments
Foreign currency translation adjustments		106,826			(798	)		9,293			115,321			Exchange differences on translating foreign operations
		—			798			—			798			Share of other comprehensive income of investments accounted for using the equity method

		15,692			—			48,191			63,883			Total other comprehensive income, net of tax

Total comprehensive income		1,207,067			—			(99,288	)		1,107,779			Comprehensive income

														Comprehensive income attributable to
Comprehensive income attributable to Sony Group Corporation’s stockholders		1,198,836			—			(80,208	)		1,118,628			Sony Group Corporation’s stockholders
Comprehensive income attributable to noncontrolling interests		8,231			—			(19,080	)		(10,849	)		Noncontrolling interests

Summary of Impact on Exchange Differences on Transalating Foreign Operations Due to First Time Adoption of IFRS

The impact of this change is as follows:


	Yen in millions
	April 1, 2020			March 31, 2021
(Consolidated Statements of Financial Position)
Accumulated other comprehensive income		(509,872	)		(510,091	)

Adjustment to retained earnings		(509,872	)		(510,091	)

Summary of Impact on Post Employment Benefits Due to First Time Adoption of IFRS

The impact of this change before considering the tax effect is as follows:


	Yen in millions
	April 1, 2020			March 31, 2021
(Consolidated Statements of Financial Position)
Other non-current assets		(16,829	)		(17,083	)
Defined benefit liabilities		30			(62	)
Accumulated other comprehensive income		(300,385	)		(277,379	)

Adjustment to retained earnings		(317,184	)		(294,524	)


	Yen in millions
	Fiscal year ended March 31, 2021
(Consolidated Statements of Income)
Cost of sales		(2,193	)
Selling, general and administrative		(244	)
Financial expenses		9,476

Increase (decrease) in adjustment to income before income taxes		7,039

Summary of Impact on Impairment of Goodwill Due to First Time Adoption of IFRS

The impact of this change is as follows:


	Yen in millions
	April 1, 2020			March 31, 2021
(Consolidated Statements of Financial Position)
Goodwill		(96,817	)		(100,727	)
Accumulated other comprehensive income		—			2,942

Adjustment to retained earnings		(96,817	)		(97,785	)


	Yen in millions
	Fiscal year ended March 31, 2021
(Consolidated Statements of Income)
Other operating (income) expense, net		(968	)

Increase (decrease) in adjustment to income before income taxes		(968	)

Summary of Impact on Equity Instruments and Debt Instruments Before Considering the Tax Effect Due to First Time Adoption of IFRS


	Yen in millions
	April 1, 2020			March 31, 2021
(Consolidated Statements of Financial Position)
Other financial assets (non-current)		22,110			31,627
Investments and advances in the Financial Services segment (non-current)		2,439,946			1,649,660

Accumulated other comprehensive income		(2,424,510	)		(1,840,980	)

Adjustment to retained earnings		37,546			(159,693	)


	Yen in millions
	Fiscal year ended March 31, 2021
(Consolidated Statements of Income)
Financial services revenue		(12,547	)
Financial services expenses		(854	)
Share of profit (loss) of investments accounted for using the equity method		(30	)
Financial income		(178,677	)

Increase (decrease) in adjustment to income before income taxes		(192,108	)

Summary of Impact on Insurance Related Accounts Before Considering Tax Effect Due to First Time Adoptiopn of IFRS

The impact of this change before considering the tax effect is as follows:


	Yen in millions
	April 1, 2020			March 31, 2021
(Consolidated Statements of Financial Position)
Deferred insurance acquisition costs		(412,997	)		(33,434	)
Future insurance policy benefits and other		(273,530	)		(14,609	)
Policyholders’ account in the life insurance business		2,261			2,170
Accumulated other comprehensive income		684,266			45,873

Summary of Impact of changes in the measurement method of debt instruments in the life insurance business on deferred tax liabilities and noncontrolling interests

The impact of this change on deferred tax liabilities and noncontrolling interests is as follows:


	Yen in millions
	April 1, 2020			March 31, 2021
(Consolidated Statements of Financial Position)
Deferred tax liabilities		(489,839	)		(452,189	)
Noncontrolling interests		(440,099	)		—
Accumulated other comprehensive income		929,938			452,189

Summary of Detailed Information About Reconciliation of Retained Earnings Due to First Time Adoption of IFRS Explanatory

The main items causing the differences in retained earnings are as follows:


	Yen in millions
	April 1, 2020			March 31, 2021
Retained earnings under U.S. GAAP		2,765,187			3,857,152

1 Exchange differences on translating foreign operations *A		(509,872	)		(510,091	)
2 Post-employment benefits *B		(317,184	)		(294,524	)
3 Impairment of goodwill *C		(96,817	)		(97,785	)
4 Equity instruments and debt instruments *D		37,546			(159,693	)
5 Other		6,616			13,249
Tax effect of adjustments		64,221			106,195

Total		(815,490	)		(942,649	)

Retained earnings under IFRS		1,949,697			2,914,503

Summary of Main Items of Differences on Income Before Income Taxes due to first time adoption of IFRS

The main items causing the differences in income before income taxes are as follows:


	Yen in millions
	Fiscal year ended March 31, 2021
Income before income taxes under U.S. GAAP		1,192,370

1 Post-employment benefits *B		7,039
2 Impairment of goodwill *C		(968	)
3 Equity instruments and debt instruments *D		(192,108	)
4 Other		(8,368	)

Total		(194,405	)

Income before income taxes under IFRS		997,965

Summary of Reconciliation of Cash Flow Statement due to first time adoption of IFRS

The main items causing the differences in the consolidated statements of cash flows are as follows:


	Yen in millions
	Fiscal year ended March 31, 2021
	Cash flows from operating activities			Cash flows from investing activities			Cash flows from financing activities
Consolidated statements of cash flows under U.S. GAAP		1,350,150			(1,781,516	)		666,967

1. Principal payments for operating lease liabilities *1		72,098			—			(72,098	)
2. Additions and disposals of content assets *2		(34,751	)		34,751			—
3. Changes in assets and liabilities in the Financial Services segment *3
(1) Investments and advances in the Financial Services segment		(1,181,744	)		1,181,744			—
(2) Deposits from customers in the banking business		332,987			—			(332,987	)
(3) Borrowings in the life insurance business and the banking business		463,783			—			(463,783	)
(4) Future insurance policy benefits and other and policyholders’ account in the life insurance business		134,299			—			(134,299	)
4. Other		3,395			1,111			(2,333	)

Total		(209,933	)		1,217,606			(1,005,500	)

Consolidated statements of cash flows under IFRS		1,140,217			(563,910	)		(338,533	)

*1	P rincipal payments for operating lease liabilities

Under U.S. GAAP, lessees classify leases as either operating leases or finance leases, and the principal payments for the operating lease liabilities are classified as cash flows from operating activities in the consolidated statements of cash flows. Under IFRS, the distinction between operating leases and finance leases no longer exists for lessees, and all of the principal payments for lease liabilities are classified as cash flows from financing activities in the consolidated statements of cash flows.

*2	Additions and disposals of content assets

Under U.S. GAAP, Sony classified the cash flows from the additions and disposals of film costs as cash flows from operating activities, and classified the cash flows from the additions and disposals of music catalogs, artist contracts, music distribution rights and other content assets as cash flows from investing activities in the consolidated statements of cash flows based on the nature of such transactions as additions and disposals of intangible assets. Under IFRS, Sony defines these intangible assets as content assets, and classifies the cash flows from the additions and disposals of content assets as cash flows from operating activities in the consolidated statements of cash flows except for additions and disposals of content assets from business combinations or business divestitures, because the additions and disposals of content assets are derived from the principal revenue-producing activities of Sony.

*3	Changes in assets and liabilities in the Financial Services segment

Under U.S. GAAP, Sony classified cash flows from changes in investments and advances in the Financial Services segment and repurchase agreements in the Financial Services segment, deposits from customers in the banking business and policyholders’ account in the life insurance business according to the nature of these transactions in the consolidated statements of cash flows. Under IFRS, Sony classifies cash flows from these transactions as cash flows from operating activities in the consolidated statements of cash flows as these transactions are viewed as integral to the principal revenue-producing activities of Sony.