Wacom 2012 Annual Report Download - page 19

35
11. Leases:
Finance lease transactions that do not transfer owner-
ship of the assets have been accounted for as ordinary
sale and purchase transactions. Such contracts,
however, have not been entered for the fiscal year
ended March 31, 2011 and 2012.
Finance lease transactions that do not transfer owner-
ship of the assets which commenced before April 1,
2008, have been accounted for using the same method
as for operating leases continuously. Such lease trans-
actions of the Company and its subsidiaries, as a
lessee, are shown below:
(1)Finance leases, which do not transfer ownership of
the assets to the lessee and are accounted for as
operating leases, are as follows:
(a)Acquisition costs of leased assets under finance
leases are as follows:
There are no applicable items for the year ended
March 31, 2012, as the lease term of lease contract
which was subject to disclosure was expired.
(b)Future lease payments under finance leases are as
follows:
(c)Lease payments and amounts representing depre-
ciation and interest are as follows:
(2)Calculation method of depreciation equivalents
Depreciation equivalents are based on the annual
declining-balance method depreciation for tangible
fixed assets over the lease terms with residual value
of 10%. To calculate the depreciation equivalents, the
annual depreciation expense is multiplied by 10 and
divided by 9. The straight-line method for the intan-
gible assets over the lease terms without residual
value.
(3)Allocation of interest expense equivalents
The difference between total lease expenses
expected to be paid over the life a lease and the capi-
talized lease asset is comprised of interest expense
equivalents and insurance, maintenance and certain
other operating costs. Interest expense equivalents
are allocated using the interest method over the lease
terms.
(4)Minimum lease payments under non-cancelable
operating leases are as follows:
There has been no impairment losses allocated to
leased assets.
12. Financial instruments:
(1)Matters relating to financial instruments -
(a)Policy for financial instruments:
The Group's financing is mainly covered by internal
fund, which provides stable and low-cost financing.
However, some short-term financial needs and work-
ing capital needs may be covered by short-term
loans. Long-term financing is also obtained based on
demand by selecting the appropriate vehicle such as
the issuance of new bond, or issuance of new shares.
Investment of surplus fund is limited in relatively
secure financial instruments with high liquidity and
high credit ratings.
The derivatives are used only for the purpose to avoid
a risk of future currency fluctuations, and any specu-
lative trading is strictly prohibited.
(b)Content of financial instruments and their risks and
risk management scheme:
“Notes and accounts receivable – trade” are exposed
to the credit risk of customers. Such risks are con-
trolled by the scheme to keep track of the due date
and outstanding balance for every customer, and
check customer's credit status on a regular basis
according to the Company’ s credit limit management
policy.
“Notes and account payable – trade” are mostly due
within one year. “Short-term loans payable” account
is primarily utilized for financing relating to business
transactions. Liquidity risk for the operating payables
and the short-term loans payable is controlled by a
monthly cash flow forecast.
As to derivative transactions, in order to hedge the
risk of fluctuation in foreign currency monetary assets
and liabilities, the Company uses forward exchange
contracts. For execution and management of deriva-
tive transactions, the finance department is respon-
sible for executing such transactions upon an
approval from authorized personnel in accordance
with the Company’s derivatives transaction policy that
defines approval authority and the trading limit of
transactions. In addition, to reduce the risk of default
on derivatives trading, the Company limits trading
counterparties to high rated financial institutions only.
Thousands of yen Thousands of
U.S. dollars
Due within one year
Due after one year
Total minimum lease payments
¥96,364
94,668
¥191,032
¥131,415
191,241
¥322,656
$1,599
2,327
$3,926
2011 2012 2012
Accumulated
depreciation
Thousands of yen
Machinery, equipment and vehicles ¥2,705 ¥2,573 ¥132
Acquisition
cost
Net balance as of
March 31, 2011
Thousands of yen Thousands of
U.S. dollars
Due within one year
Due after more than one year
¥482
-
¥482
¥ -
-
¥ -
$ -
-
$ -
2011 2012 2012
Thousands of yen Thousands of
U.S. dollars
Lease payments
Amount representing depreciation
Amount representing interest
¥1,654
575
82
¥482
132
17
$6
2
0
2011 2012 2012
Notes to Consolidated Financial Statements
(c)Supplementary information concerning the fair
value of financial instruments:
The amount of derivatives contracts in the Notes to
"Derivatives Transaction" is the nominal value of
derivatives contracts or the calculated notional
amount only, and it does not show the size of market
risk relating to the derivative transaction itself.
(2)Fair value of financial instruments -
The following table presents the carrying amounts
recorded in the consolidated balance sheets as of
March 31, 2011 and 2012, estimated fair values of
financial instruments and the differences. Financial
instruments deemed extremely difficult to calculate the
current market value are not included. (See Note: b)
(*) Derivatives are presented in net amount of receivables and payables.
Notes: Matters related to method for calculating market value of financial
instruments and securities and derivatives transactions.
Assets
(1)Cash and deposits, (2)notes and accounts receiv-
able
Due to expected settlement with in a short period of
time, we estimate that the carrying amount is equiva-
lent to market value.
Liabilities
(1)Notes and accounts payable – trade, (2)short-term
loans payable and (3)income taxes payable
36
Due over one
year to 5 years
Due Over
10 years
Due over 5 years
to 10 years
Thousands of yen
March 31, 2011
Cash and deposits
Notes and accounts
receivable - trade
Total
¥10,454,820
4,216,958
¥14,671,778
¥ -
-
¥ -
¥ -
-
¥ -
¥ -
-
¥ -
Due within
one year
Due over one
year to 5 years
Due Over
10 years
Due over 5 years
to 10 years
Thousands of yen
March 31, 2012
Cash and deposits
Notes and accounts
receivable - trade
Total
¥11,969,873
7,174,640
¥19,144,513
¥ -
-
¥ -
¥ -
-
¥ -
¥ -
-
¥ -
Due within
one year
Due over one
year to 5 years
Due Over
10 years
Due over 5 years
to 10 years
Thousands of U.S. dollars (Note 1)
March 31, 2012
Cash and deposits
Notes and accounts
receivable - trade
Total
$145,637
87,293
$232,930
$ -
-
$ -
$ -
-
$ -
$ -
-
$ -
Due within
one year
Due to expected settlement with in a short period of
time, we estimate that the carrying amount is equiva-
lent to market value.
Derivatives transaction
See Note 13 “Derivatives” .
b) Financial instruments per which there is no readily
available information are reported at their carrying
value as of March 31, 2011 and 2012 are as follows.
These financial instruments do not have readily avail-
able market prices to calculate the current market
value, thus have been omitted from fair market value
presentation in a).
c)Redemption schedule of financial instruments after
year ended March 31, 2011 and 2012.
d)Change in accounting policy
The Company has changed the timing of revenue rec-
ognition for the Company’ s standard products to rec-
ognize revenue at the point of arrival at the
customer’ s location rather than upon shipment from
the beginning of fiscal year ended March 31, 2012.
This change has been retroactively applied and notes
and accounts receivable-trade for the year ended
March 31, 2011 were restated.
2012 2012
Thousands of
U.S. dollars
Thousands of yen
Unlisted securities ¥14,778 ¥195,115 $2,374
2011
Carrying amount Carrying amountCarrying amount
Thousands of yen
(1)Cash and deposits
(2) Notes and accounts receivable - trade
Total assets
(1) Notes and accounts payable - trade
(2)Short-term loans payable
(3)Income taxes payable
Total liabilities
Derivatives (*)
¥10,454,820
4,216,958
¥14,671,778
3,994,330
600,000
221,326
¥4,815,656
(¥32,113)
¥10,454,820
4,216,958
¥14,671,778
3,994,330
600,000
221,326
¥4,815,656
(¥32,113)
¥ -
-
¥ -
-
-
-
¥ -
¥ -
March 31, 2011
Carrying Amount Fair value Difference
Thousands of yen
(1)Cash and deposits
(2) Notes and accounts receivable - trade
Total assets
(1) Notes and accounts payable - trade
(2)Short-term loans payable
(3)Income taxes payable
Total liabilities
Derivatives (*)
¥11,969,873
7,174,640
¥19,144,513
8,307,536
600,000
1,375,072
¥10,282,608
(¥60,320)
¥ -
-
¥ -
-
-
-
¥ -
¥ -
March 31, 2012
Carrying Amount Fair value Difference
¥11,969,873
7,174,640
¥19,144,513
8,307,536
600,000
1,375,072
¥10,282,608
(¥60,320)
Thousands of U.S. dollars (Note 1)
(1)Cash and deposits
(2) Notes and accounts receivable - trade
Total assets
(1)
Notes and accounts payable - trade
(2)Short-term loans payable
(3)Income taxes payable
Total liabilities
Derivatives (*)
$145,637
87,293
$232,930
101,077
7,300
16,730
$125,107
($734)
$ -
-
$ -
-
-
-
$ -
$ -
March 31, 2012
Carrying Amount Fair value Difference
$145,637
87,293
$232,930
101,077
7,300
16,730
$125,107
($734)