Fujitsu 2014 Annual Report Download - page 142

Yen
(millions)
At March 31, 2013
Carrying value in
consolidated
balance sheet Fair value Variance
Current assets
(1) Cash and cash equivalents ¥ 286,602 ¥ 286,602 ¥ —
(2) Short-term investments 18,363 18,363 —
(3) Receivables, trade 895,984
Allowance for doubtful accounts*1(12,079)
883,905 883,905 —
Investments and other non-current assets*2
(4) Investments in and long-term loans
to affiliates 29,483 50,046 20,563
(5) Others 95,666 95,666 —
Total assets 1,314,019 1,334,582 20,563
Current liabilities
(1) Short-term borrowings and current
portion of long-term debt 289,722 289,722 —
(2) Lease obligations 14,385 14,385 —
(3) Payables, trade 566,757 566,757 —
(4) Accrued expenses 322,765 322,765 —
Long-term liabilities
(5) Long-term debt 245,245 251,026 5,781
(6) Lease obligations 26,764 26,917 153
Total liabilities 1,465,638 1,471,572 5,934
Derivative transactions*3
(i) Transactions which do not qualify
for hedge accounting 1,326 1,326 —
(ii) Transactions which qualify for
hedge accounting 674 674 —
Total derivative transactions 2,000 2,000 —
*1 It comprises the allowance for doubtful accounts in respect to Receivables, trade, short-term loan receivable and others.
*2 Unlisted securities classified as shares in affiliates or available-for-sale securities are defined as “financial instruments for which it is extremely difficult to deter-
mine 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 25, 2011). Accordingly unlisted securities are not included in
“Investments and other non-current assets” stated above. The carrying values of the stocks in the consolidated balance sheet as of March 31, 2013 and 2014 are
¥46,643 million and ¥51,260 million ($497,670 thousand), consisting of Investments in and long-term loans to affiliates: ¥19,118 million and ¥22,394 million
($217,417 thousand) and Others: ¥27,525 million and ¥28,866 million ($280,252 thousand), respectively.
*3 The net amount of the assets and liabilities is shown. If the net amount is a liability, it is written in parentheses [ ].
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 other non-current assets:
(4) Investments in and long-term loans to affiliates and (5) Others
The fair value of securities is based on the market price on the stock exchanges, and the 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 obligations, (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 obligations
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 discount-
ing 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 debt and lease obligations 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.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
140 FUJITSU LIMITED ANNUAL REPORT 2014