①With regard to the application of the provisions of the items of Article 53, paragraph (1) of the Act on Special Measures Concerning Taxation as amended by the 1976 Amendment Act in each business year commencing on or after the Effective Date (limited to each business year commencing before April 1, 1977) of a corporation prescribed in Article 53, paragraph (1) of the New Act that, at the end of the business year immediately preceding the business year commencing first on or after the Effective Date, holds, out of the amount of the reserve for price fluctuations under Article 53, paragraph (1) of the Former Act (including Article 12, paragraph (2) of the Supplementary Provisions of the 1973 Amendment Act Before the Amendment), the amount calculated pursuant to the provisions of Cabinet Order as the portion pertaining to inventory assets prescribed in Article 53, paragraph (1), item (i) of the Former Act (hereinafter referred to as the "amount of the special reserve for price fluctuations" in this paragraph) (excluding a corporation to which the provisions of Article 11, paragraph (1) or (2) of the Supplementary Provisions of the 1976 Amendment Act have been applied), notwithstanding the provisions of the items of that paragraph, the amount calculated under the provisions of the items of that paragraph is to be the total of that amount and the amount calculated by multiplying the amount of the special reserve for price fluctuations by the number obtained by deducting from 36 the number equivalent to the number of months in the period from the first day of that first business year to the end of the business year concerned (or 36, if that number exceeds 36), and dividing the product by 36.

②The number of months referred to in the preceding paragraph is calculated in accordance with the calendar, and any fraction of less than one month is counted as one month.

③The calculation of the amount of the special reserve for price fluctuations referred to in paragraph (1) in the case where a corporation prescribed in that paragraph has carried out a merger on or after the Effective Date, and other necessary matters concerning the application of the provisions of that paragraph, are specified by Cabinet Order.

④The provisions of Article 55 of the New Act apply to specified shares, etc. prescribed in paragraph (1) of that Article that a corporation acquires on or after the Effective Date, and with regard to specified shares, etc. prescribed in Article 55, paragraph (1) of the Former Act that a corporation acquired before the Effective Date, the provisions then in force continue to govern.

⑤The provisions of Article 57-6 of the Former Act remain in force with regard to corporation tax for business years commencing on or before April 30, 1975 of a corporation prescribed in paragraph (1) of that Article.

⑥With regard to the inclusion in gross profit of the amount of the reserve for abnormal risks prescribed in Article 57-6, paragraph (1), item (ii) of the Former Act that a corporation which has set aside the reserve for abnormal risks under paragraph (1) of that Article holds at the end of a business year commencing on or after May 1, 1975, the provisions of paragraphs (2), (3) and (5) through (10) of that Article are to govern, with the phrase "the amount specified by Cabinet Order out of that amount" in paragraph (6) of that Article deemed to be replaced with "the amount that it has set aside pursuant to the provisions of Cabinet Order".