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(Note 1) Calculation method relating to fair value of Financial Instruments
Current assets
(1) Cash and cash equivalents, (2) Short-term investments and (3) Receivables, trade
The fair value of these items approximates the carrying value due to the short maturity of these instruments.
Investments and long-term loans
(4) Affiliates and (5) Others
The fair value of securities is based on the market price on the stock exchanges, and fair value of bonds is based on quotes obtained from the financial institutions or on
the market price on the stock exchanges.
Current liabilities
(1) Short-term borrowings and current portion of long-term debt, (2) Lease obligation, (3) Payables, trade and (4) Accrued expenses
The fair value of these items approximates the carrying value due to the short maturity of these instruments.
Long-term liabilities
(5) Long-term debt and (6) Lease obligation
The fair value of bonds which have a market price is based on the market price. The fair value of bonds for which there is no market price is calculated by discounting the
sum of future principal and interest payments to the present value at a rate taking into account the remaining term and the credit risk of bonds.
The fair value of long-term borrowings and lease obligation is calculated by discounting the sum of future principal and interest payments to the present value at the
rate expected in another loan or lease transaction with the same conditions.
(Note 2) Financial instruments for which it is extremely difficult to determine the fair value
Unlisted stocks are classified as “Financial instruments for which it is extremely difficult to determine the fair value”, because no market price is available and it is not possible
to estimate the future cash flow in accordance with “Accounting Standard for Financial Instruments” (Accounting Standards Board of Japan, Statement No. 10 dated March 10,
2008) and “Implementation Guidance on Disclosures about Fair Value of Financial Instruments” (Accounting Standards Board of Japan Guidance No. 19 dated March 10, 2008).
Accordingly unlisted stocks are not included in the “Investments and long-term loans” stated above. The carrying value in the consolidated balance sheet of the stocks as of
March 31, 2010 is ¥50,781 million ($546,032 thousand), consisting of Affiliate: ¥20,169 million ($216,871 thousand) and Others: ¥30,612 million ($329,161 thousand).
13. Marketable Securities
At March 31, 2009 and 2010, marketable securities included in “Short-term investments” and “Others” of “Investments and long-term loans” are
as follows:
Yen
(millions)
U.S. Dollars
(thousands)
At March 31 2009 2010 2010
Available-for-sale securities
Acquisition costs ¥ 93,974 ¥182,655 $1,964,032
Carrying value (Market value) 180,139 208,776 2,244,903
Net unrealized gain ¥ 86,165 ¥ 26,121 $ 280,871
Held-to-maturity investments are not listed above due to the immaterial balances.
116 FUJITSU LIMITED Annual Report 2010
Notes to Consolidated Financial Statements