Mitsubishi 2011 Annual Report Download - page 53

(In millions of yen)
March 31, 2010
Carrying
amount Fair value Difference
Cash and bank deposits ¥264,323 ¥264,323 ¥ —
Notes and accounts
receivable–trade 121,385 121,385 —
Finance receivables 67,336
Allowance for doubtful
accounts (*1) (5,550)
61,785 61,079 (705)
Investment securities (*2) 20,296 20,296 —
Total assets ¥467,790 ¥467,084 ¥(705)
Notes and accounts
payable–trade ¥265,028 ¥265,028 ¥ —
Short-term loans payable 125,851 125,851 —
Long-term loans payable (*3) 266,697 267,638 940
Accrued expenses and accounts
payable (*4) 101,190 101,190 —
Total liabilities ¥758,768 ¥759,709 ¥ 940
Derivative transactions (*5) 8,956 8,956 —
(*1) The allowance for doubtful accounts recognized for the individual
financial receivable is deducted from the carrying amount.
(*2) Investments presented on the balance sheets consist of Investment
securities of ¥64,820 million, which include Securities with market value
of ¥20,296 million and Non-listed stocks and stocks of unconsolidated
subsidiaries and affiliates of ¥44,524 million (refer to Note 16.2), and
Other investments in unconsolidated subsidiaries and affiliates of
¥13,839 million at March 31, 2010.
(*3) Long-term debts presented on the balance sheets consist of Long-term
loans payable of ¥266,697 million and bonds of ¥200 million at March
31, 2010.
(*4) Accounts payable-other and accrued expenses presented on the balance
sheets consist of Accrued expenses and accounts payable of ¥101,190
million and Allowance for product warranties of ¥26,331 million at
March 31, 2010.
(*5) The amount of the receivable/payable derived from derivative transac-
tions is presented on a net basis.
(Note)
1. Method to measure the fair value of the financial instruments,
and other securities and derivative transactions
Assets
Cash and bank deposits
The carrying amounts are used as fair values of these items as these
items are settled within a short period of time and the fair values
are nearly equal to such carrying amounts.
Notes and accounts receivable–trade
The carrying amounts are used as fair values of these items as these
items are generated in the normal course of business operations
and principally settled within a short period of time and the fair
values are nearly equal to such carrying amounts.
Finance receivables
The finance receivables are classified by certain terms to maturity,
and the fair values of these items are determined based on the
present values of the future cash flows that are discounted at the
appropriate indicative rates such as rates of government bonds
adding the credit risk premiums based on the credit risk classes
respectively.
Investment securities
The fair values of investment securities are based on the market
value. Refer to Note 6, “Investments”, regarding the details of the
securities classified by the purpose of holding.
Liabilities
Notes and accounts payable–trade, Short-term loans payable and
Accrued expenses and accounts payable
The carrying amounts are used as fair values of these items as these
items are settled within a short period of time and the fair values
are nearly equal to such carrying amounts.
Long-term loans payable
The long-term loans payable are classified by certain terms to
maturity, and the fair values of these items are determined based
on the present values of the total amount of principal and interest
that are discounted by using the prevailing interest rates that would
be presumably applied if similar loans were newly made.
MITSUBISHI MOTORS CORPORATION
Annual Report 2011 51