Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises Article 18-1

When preparing consolidated financial statements of affiliates, a public company shall place its Declaration and the Review Report, prepared pursuant to the provisions of the Guidelines for the Review of Consolidated Financial Statements of Affiliated Enterprises by the CPA certifying the financial report, on the first two pages of the consolidated financial statements of the affiliates and bind them together as a volume.If the companies required to be included in the consolidated financial statements of affiliates under these Criteria are all the same as companies required to be included in the consolidated financial statements of parent and subsidiary companies as provided in Financial Accounting Criteria Gazette No. 7, and if relevant information that should be disclosed in the consolidated financial statements of affiliates has all been disclosed in the consolidated financial statements of parent and subsidiary companies, the [controlling] company may place a declaration to this effect on the first page of the consolidated financial statements of parent and subsidiary companies, shall not be required to prepare separate consolidated financial statements of affiliates or produce the Declaration referred to in the preceding paragraph.A public company preparing an affiliation report shall place its Declaration and the opinion on the Declaration submitted by the CPA certifying the financial report on the first two pages of the affiliation report and bind them together as a volume.