Accounting Rules for Investment Trusts
Established on March 23, 1999
Revised on March 19, 2004
Revised on March 18, 2005
Revised on May 24, 2006
Revised on September 21, 2007
Revised on November 16, 2007
Revised on September 19, 2008
Revised on January 16, 2009
Revised on December 20, 2012

Chapter 1:
Article 1

General Provisions
PurposeThe accounting processes and entry methods in preparing balance sheets, profit, loss, and surplus statements,and supplementary schedules for investment trust property (hereinafter referred to as “Financial Statements,etc.”) as well as the content and amounts recorded for each account title of an investment trust property shall bein accordance with the provisions of the Regulation on Calculation of Investment Trust Property (PrimeMinister's Office Order No. 133 of 2000; hereinafter referred to as the “Rules for Investment Trust FinancialStatements”) and these Rules.
Article 2

Accounting Principles

The accounting processes and entry methods in preparing Financial Statements, etc. for investment trusts, etc.
shall conform to the following principles:(1) Present a true statement of the state of assets and profits and losses(2) Prepare accurate accounting books for all transactions in accordance with the principle of orderly
bookkeeping(3) Clearly state the accounting facts necessary to accurately determine the status of assets and profits andlosses(4) Apply accounting principles and procedures and entry methods for Financial Statements, etc.
continuously for each accounting period and do not change them without reason(5) If nothing is provided for in Rules for Investment Trust Financial Statements and these Rules, adhere to
generally accepted accounting principles
Article 3Notes, etc. on Accounting Policies

1. Important accounting policies for preparing balance sheets and profit, loss, and surplus statements must be
stated in the notes. However, this shall not apply to accounting policies which are adopted in principle.
2. When any changes occur to accounting policies involving balance sheets and profit, loss, and surplus
statements, the reason for the change, and the amount of the increase or decrease resulting from the changemust be stated in the notes. However, notes are not required if the effect of the change is minor.
3. The provision of the preceding paragraph shall apply mutatis mutandis to any change in the entry method forbalance sheets and profit, loss, and surplus statements. In this case, “accounting policies” in the sameparagraph shall be deemed to be replaced with “entry method”.

Article 4

Method for Including Notes

1. Matters to be noted as provided for in these Rules must be noted in balance sheets and profit, loss, andsurplus statements.
2. In addition to what is provided for in these Rules, matters necessary for accurately determining the status ofassets or profits and losses for an investment trust must be stated in the notes of balance sheets and profit,loss, and surplus statements.

Chapter 2:
Article 5

Balance Sheets
Division

Balance sheets must include an assets section, a liabilities section, and a net asset section, all of which shallhave totals.

Article 6

Assets Section

1. The assets section must be subdivided into account titles showing the nature of deposits, share certificates,
national government bonds and other assets so as to show the contents of assets as clearly as possible.
2. The assets section can be subdivided into account titles showing deposits, share certificates, national
government bonds and other assets as set forth in the By-laws and each account title shall record amounts,etc. as set forth in the By-laws.
* Article 2 of the By-laws

Article 7

Liabilities Section

1. The liabilities section must be subdivided into account titles showing the nature of loans, advances received,accounts payable and other liabilities so as to show the state of liabilities as clearly as possible.
2. The liabilities section can be subdivided into account titles showing loans, advances received, accountspayable and other liabilities as set forth in the By-laws and each account title shall record amounts, etc. as set
forth in the By-laws.
* Article 3 of the By-laws

Article 8

Valuation of Investment Securities, etc. and Derivatives

Valuation of investment securities and other financial instruments, etc. (hereinafter referred to as “Securities,etc.”) and derivatives shall in principle be made at market value. However, this shall not apply to cases whereinvestment trust contracts (hereinafter referred to as “Contracts”) are otherwise provided.
Article 9Valuation of Foreign Currency Assets and Liabilities

Valuation of assets and liabilities denominated in foreign currencies shall be based on the exchange rate of thefinal day of the accounting period.

Article 10

Net Asset Section

1. The net asset section shall be divided into principal, stock price fluctuation reserve, price fluctuation reserve,and surplus or deficit.
2. The net asset section can be subdivided into account titles showing principal, stock price fluctuation reserve,
price fluctuation reserve, surplus or deficit, and other net worth items as set forth in the By-laws and eachaccount title shall record amounts, etc. as set forth in the By-laws.
* Article 4 of the By-laws

Article 11

Definition of Principal

Principal is the amount calculated by multiplying the number of beneficiary rights on the final day of theaccounting period by the amount per right specified in the Contracts.

Article 12

Definition of Stock Price Fluctuation Reserve and Price Fluctuation Reserve

The stock price fluctuation reserve or the price fluctuation reserve is the amount obtained by multiplying theamount exceeding the principal of the net asset amount by the percentage specified in the Contracts.

Article 13

Note on the Net Asset per Unit AmountThe balance sheet must contain the amount of the net asset per unit on the final day of the accounting period.

Chapter 3:
Article 14

Profit, Loss, and Surplus Statement
Division

1. The profit, loss, and surplus statement shall be divided into revenue and expenses and shall be calculated bydeducting the total amount of expenses from the total amount of revenue to obtain the net profits or losses forthe period in question. Adjusted net profits or losses shall be calculated by adding or subtracting the net
profit or loss distribution amount due to early cancellation to the calculated amount.
2. Surplus at the end of a period shall be calculated by adding or subtracting the surplus or deficit at the start ofthe period, any increases or decreases from additional trusts during the period, any increases or decreases due
to early cancellation during the period, and any distributions to the adjusted net profit.

Article 15

Account titles of Revenues and Expenses

1. Revenues and expenses for an investment trust must be subdivided into account titles with appropriate namesthat indicate the nature thereof.
2. Revenues and expenses may be subdivided into account titles as set forth in the By-laws and each accounttitle shall record amounts, etc. as set forth in the By-laws.
* Articles 5, 6 and 7 of the By-laws

Article 16

Recognizing Dividend IncomeDividend income shall be recorded on the day when the sale or purchase of said stock occurred.

Article 17

Recognizing Profit or Loss from Selling or Purchasing Securities, etc.

1. Profit or loss realized through the sale or purchase of Securities, etc. shall be recorded on the date theagreement was concluded.
2. Valuation losses or gains of Securities, etc. shall be recorded as profits or losses on the sale or purchase ofSecurities, etc. on the final day of the accounting period.

Article 18

Recognition of Profit or Loss on Derivative Transactions, etc.

1. Profit or loss realized through derivative transactions, etc. shall be recorded on the date the agreement wasconcluded.
2. Valuation losses or gains of derivative transactions, etc. shall be recorded as profits or losses on derivativetransactions, etc. on the final day of the accounting period.

Article 19

Recognition of Profit or Loss in Foreign Exchanges

1. Foreign exchange profits or losses realized through forward exchange transactions shall be recorded on thedate the agreement was concluded.
2. Valuation losses or gains of foreign exchange on assets and liabilities denominated in foreign currencies
shall be recorded as foreign exchange profits or losses on the final day of the accounting period.

Article 20

Deleted

Article 21

Definition of the Net Profit Distribution Amount or Net Loss Distribution Amount upon EarlyCancellation
The net profit distribution amount or net loss distribution amount accompanying an early cancellation shall bethe amount of profit or loss for the period distributed via a partial early cancellation by the Consignor during theperiod.
Article 22

Definition of Increase or Decrease from Additional Trusts during the Current Accounting Period

The increase or decrease from additional trusts during the current accounting period shall be the increase or
decrease to the surplus or deficit from the addition of a trust during the period.

Article 23

Definition of Increase or Decrease due to Early Cancellation during the Current Accounting

PeriodThe increase or decrease due to early cancellation during the current accounting period shall be the amount of
the increase or decrease to the surplus or deficit from an early cancellation during the period.
Article 24

Recording Distributions

1. Distributions of investment trusts shall be recorded in profit, loss, and surplus statements on the distribution
determination date. Any unpaid amount of the distribution shall be recorded in the balance sheet as an unpaid

income distribution.
2. The basis for calculation of distribution shall be recorded in profit, loss, and surplus statements.

Chapter 4:Article 25

Supplementary Schedules
Supplementary Schedules to Be Prepared by the Investment Trust Management Company

1. The Investment Trust Management Company (meaning an investment trust management company as
defined in Article 2, Paragraph 11 of the Act on Investment Trusts and Investment Corporations (Act No.
198 of 1951). ) must prepare the following supplementary schedules in addition to the supplementaryschedules set forth in Article 57 of the Rules for Investment Trust Financial Statements. However,preparation of these supplementary schedules is not required when there are no transactions pertaining tothese supplementary schedules:(1) Short selling securities schedule(2) Accounts receivable schedule(3) Unit Type Distribution Statement(4) Open Type Profit Distribution Statement(5) Status of transactions with interested parties, etc.
2. The supplementary schedules listed in the preceding paragraph shall be prepared in the form specified in theBy-laws.
* Article 8 of the By-laws

Chapter 5:
Article 26

Miscellaneous Provisions
By-laws

Necessary matters for the enforcement of these Rules shall be stipulated in the By-laws.

Article 27

OthersAny matters regarding the accounting procedures for investment trusts not stipulated in these Rules may be
decided by a resolution of the Board of Directors.

Article 28

Delegation to Competent Committee

1. The Board of Directors shall be entitled to delegate to the Self-regulation Committee the authority to amend
any By-laws relating to these Rules.
2. The Self-regulation Committee shall promptly report to the Board of Directors any decision(s) made (limitedto those deemed necessary by the Board of Directors) concerning any delegated matters.

Supplementary Provision
These Rules shall come into effect on December 1, 1998.

Supplementary ProvisionThis amendment shall come into effect on April 1, 2004.

Supplementary ProvisionThis amendment shall come into effect on March 18, 2005.

Supplementary ProvisionThis amendment shall come into effect on May 24, 2006.

Supplementary Provisions
This amendment shall come into effect on September 30, 2007.
However, any documents defined in Article 25, Paragraph 1, Item 1 prior to the revision intended for thecalculation period whose preparation begun before the implementation date shall remain applicable.

Supplementary ProvisionThis amendment shall come into effect on November 16, 2007.

Supplementary ProvisionThis amendment shall come into effect on October 1, 2008.

Supplementary ProvisionThis amendment shall come into effect on January 16, 2009.

Supplementary ProvisionThis amendment shall come into effect on January 4, 2013.