Fujitsu 2008 Annual Report Download - page 112

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Control of Derivative Trading
The Group enters into derivative transactions based on regulations established by the Company, and controls the
risk of the transaction by assessing the effectiveness of its hedging.
Hedge Accounting
The Group adopts hedge accounting for its derivative transactions after assessing the effectiveness of its hedging.
Gains or losses on changes in the fair market values of the hedging instruments, which consist of forward
exchange, option and swap contracts and related complex contracts, are recognized as income when the relating
hedged items are reflected in income.
Fair Value of Derivative Financial Instruments:
All derivative financial instruments were stated at fair market value and recorded on the balance sheets.
<Currency-related transactions>
At March 31, 2008 Yen (millions)
Contract
Amount
Contract
Amount
Over 1 Year
Fair Value
Gain/Loss
Foreign Exchange Forward Contracts
To buy foreign currencies
U.S. Dollars ¥58,183 ¥31,511 ¥7,800 ¥(2,516)
Other currencies 6,648 4,227 1,507 739
To sell foreign currencies
U.S. Dollars 10,178 6,820 1,858 (249)
Other currencies 1,782 — 1,759 (8)
Foreign Exchange Options Contracts
To buy options
U.S. Dollars puts 3,020 —
<22> <—> 13 (9)
To sell options
U.S. Dollars calls 3,020 —
<22> <—> (55) (33)
Foreign Exchange Swap Contracts
Receive Pound Sterling/pay Euro 4,715 — (191) (191)
Receive Pound Sterling/pay U.S. Dollar or other currencies 4,931 — (57) (57)
Receive Euro/pay Pound Sterling 21,029 — 736 736
Receive U.S. Dollar or other currencies/pay Pound Sterling 10,716 — 174 174
Total ¥(1,414)
110
ANNUAL REPORT 2008FUJITSU LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS