Canon 2009 Annual Report Download - page 97

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95
Fair value is the price that would be received to sell an asset or
paid to transfer a liability (an exit price) in the principal or most
advantageous market for the asset or liability in an orderly trans-
action between market participants at the measurement date. A
three-level fair value hierarchy that prioritizes the inputs used to
measure fair value is as follows:
Level 1 — Inputs are quoted prices in active markets for identical
assets or liabilities.
Level 2 — Inputs are quoted prices for similar assets or liabilities
in active markets, quoted prices for identical or similar
assets or liabilities in markets that are not active, inputs
other than quoted prices that are observable, and inputs
21. Fair Value Measurements
that are derived principally from or corroborated by
observable market data by correlation or other means.
Level 3 — Inputs are derived from valuation techniques in which
one or more signifi cant inputs or value drivers are
unobservable, which refl ect the reporting entity’s own
assumptions about the assumptions that market
participants would use in establishing a price.
Assets and liabilities measured at fair value
on a recurring basis
The following table presents Canon’s assets and liabilities that are
measured at fair value on a recurring basis at December 31, 2009
and 2008.
December 31
Millions of yen Level 1 Level 2 Level 3 Total
2009: Assets:
Cash and cash equivalents ¥ — ¥ 184,856 ¥ — ¥ 184,856
Available-for-sale securities (current):
Government bonds 222 — — 222
Available-for-sale securities (noncurrent):
Government bonds 204 — — 204
Corporate bonds — 29 1,340 1,369
Fund trusts 1,589 979 — 2,568
Equity securities 17,726 — — 17,726
Derivatives — 752 — 752
Total assets ¥ 19,741 ¥ 186,616 ¥ 1,340 ¥ 207,697
Liabilities:
Derivatives ¥ — ¥ 7,210 ¥ — ¥ 7,210
Total liabilities ¥ — ¥ 7,210 ¥ — ¥ 7,210
Millions of yen Level 1 Level 2 Level 3 Total
2008: Assets:
Cash and cash equivalents ¥ — ¥ 194,030 ¥ — ¥ 194,030
Available-for-sale securities (current):
Government bonds 1 — — 1
Fund trusts 149 — — 149
Available-for-sale securities (noncurrent):
Government bonds 413 — — 413
Corporate bonds 43 29 1,516 1,588
Fund trusts 1,284 952 — 2,236
Equity securities 12,218 — — 12,218
Derivatives — 10,516 — 10,516
Total assets ¥ 14,108 ¥ 205,527 ¥ 1,516 ¥ 221,151
Liabilities:
Derivatives ¥ — ¥ 678 ¥ — ¥ 678
Total liabilities ¥ — ¥ 678 ¥ — ¥ 678
Canon AR09_FS_0325_ipc .indd 95 10.3.26 2:47:13 PM