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41
Brother Annual Report 2011
rency trade receivables and payables are expected from a forecasted transaction, forward foreign currency contracts and currency option con-
tracts may be used to hedge foreign exchange risk resulting from the forecasted transaction expected to occur within one year.
For the year ended March 31, 2010, interest-rate swaps were used to manage exposure to market risks from changes in interest rates of loan
payables.
The executions and administration of derivatives have been approved by those who are granted authority based on the internal guidelines
which prescribe the authority and the limit for each transaction.
Liquidity risk management
Liquidity risk comprises the risk that the Group cannot meet its contractual obligations in full on maturity dates. The Group manages its liquidity
risk with adequate financial planning by each company.
(4) Fair values of financial instruments
Fair values of financial instruments are based on quoted prices in active markets. If quoted price is not available, other rational valuation tech-
niques are used instead. Also, please see Note 17 for the detail of fair value for derivatives.
(a) Fair value of financial instruments
Millions of yen
March 31, 2011 Carrying
amount Fair value
Unrealized
gain
Cash and cash equivalents ¥ 65,101 ¥ 65,101 —
Marketable securities 300 300 —
Receivables 62,185 62,185 —
Investment securities 12,809 12,814 ¥ 5
Total ¥ 140,395 ¥ 140,400 ¥ 5
Short-term borrowings ¥ 8,637 ¥ 8,637 —
Current portion of long-term debt 3,422 3,431 ¥ 9
Payables 47,415 47,415 —
Income taxes payable 7,346 7,346 —
Long-term debt 18,306 18,566 260
Total ¥ 85,126 ¥ 85,395 ¥ 269
Millions of yen
March 31, 2010 Carrying
amount Fair value
Unrealized
gain/loss
Cash and cash equivalents ¥ 49,031 ¥ 49,031 —
Marketable securities 300 300 —
Receivables 68,928 68,869 ¥ (59)
Investment securities 13,705 13,710 5
Total ¥ 131,964 ¥ 131,910 ¥ (54)
Short-term borrowings ¥ 6,337 ¥ 6,337 —
Current portion of long-term debt 6,952 6,952 —
Payables 47,903 47,903 —
Income taxes payable 4,368 4,368 —
Long-term debt 18,185 18,511 ¥ 326
Total ¥ 83,745 ¥ 84,071 ¥ 326