Epson 2010 Annual Report Download - page 67

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66
swap transactions are approved and executed based on the authorization of Epson’s director responsible for
finance based on internal rules and policies concerning financial management.
For investment securities, Epson regularly reviews the market value and financial results, etc., of the issuing
company (counterparty) based on rules and policies for managing investment securities. Epson also takes into
consideration the state of the relationship with counterparties as it constantly reviews the level of its holdings.
(3) Liquidity risk
Epson manages liquidity risk by maintaining current liquidity at an appropriate level through creating and
updating liquidity plans at appropriate times, and by constantly reviewing the external financial environment.
Fair value of financial instruments
The fair value of each category of Epson’s financial instruments and their carrying value in Epson’s balance
sheets are as follows:
Millions of yen
March 31, 2010
Instruments
Carrying
value Fair value
Unrealized
gains
(losses)
Cash and deposits ¥193,117 ¥193,117 -
Notes and accounts receivable-trade 144,435 144,435 -
Short-term investment securities 51,500 51,500 -
Investment securities 12,188 12,188 -
Total ¥401,241 ¥401,241 -
Notes and accounts payable-trade 90,768 90,768 -
Short-term loans payable 21,739 21,739 -
Accounts payable-other 58,576 58,576 -
Bonds payable (including current portion) 100,000 101,211 ¥1,211
Long-term loans payable (including current portion) 187,322 189,764 2,441
Total ¥458,406 ¥462,059 ¥3,652
Derivative instruments (¥1,116) (¥1,116) -