Suzuki 2011 Annual Report Download - page 40

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SUZUKI MOTOR CORPORATION 39
Matters for methods used to measure fair values of financial instruments
Assets:
a. Cash and deposits
Because fair values of deposits are approximately equal to the carrying amounts, such carrying amounts are
used.
b. Notes and accounts receivables-trade
Fair values of sales finance receivables are calculated on the discount method by the expected rate applied to
new loan contract, on each receivable classified into a certain term.
Notes and accounts receivables-trade except sales finance are settled in short term and those fair values are
approximately equal to the carrying amounts. So carrying amounts are used as fair values.
c. Short-term investment securities and Investment securities
These fair values are prices of the stock exchanges. Also please see Note 2 (f).
Liabilities:
a. Accounts payable-trade, Short-term loans payable and Accrued expenses
Because these are settled in short term and those fair values are approximately equal to the carrying amounts,
such carrying amounts are used.
b. Current portion of long-term loans payable and Long-term loans payable
These fair values are measured by discounting based on the estimated interest rates at which similar new loans
with same amount of principal and interest could have been borrowed.
c. Bonds with subscription rights to shares
Fair values of bonds with subscription rights to shares are measured based on the market value.
Derivatives:
Please refer to Note 4 (g) Derivative transactions.
Consolidated Financial Statements