Mitsubishi 2012 Annual Report Download - page 50

(In millions of yen)
March 31, 2011
Carrying
amount Fair value Difference
Cash and bank deposits ¥317,097 ¥317,097 ¥ —
Notes and accounts
receivable–trade 114,432 114,432 —
Finance receivables 78,980
Allowance for doubtful
accounts (*1) (5,928)
73,051 70,893 (2,158)
Investment (*2) 28,722 28,722 —
Total assets ¥533,304 ¥531,146 ¥(2,158)
Notes and accounts
payable–trade ¥278,595 ¥278,595 ¥ —
Short-term loans payable 125,499 125,499 —
Long-term loans payable 272,450 272,942 492
Accounts payable – other and
accrued expenses (*3) 97,159 97,159 —
Total liabilities ¥773,704 ¥774,196 ¥ 492
Derivative transactions (*4) 6,767 6,767 —
(*1) Allowances for doubtful accounts recognized for individual financial
receivable are deducted from the carrying amounts directly.
(*2) Investments presented in the balance sheets consist of: investment
securities of ¥73,031 million, which include securities with market value
of ¥28,722 million and non-listed stocks and stocks of unconsolidated
subsidiaries and affiliates of ¥44,309 million (refer to Note 15.2);and
other investments in unconsolidated subsidiaries and affiliates of
¥14,547 million at March 31, 2011.
(*3) Accounts payable – other and accrued expenses presented in the
balance sheets consist of accrued expenses and accounts payable of
¥97,159 million and allowance for product warranties of ¥28,211
million at March 31, 2011.
(*4) The amount of the receivable/payable derived from derivative transac-
tions is presented on a net basis.
(Note)
1. Method for measuring the fair value of financial instruments,
other securities, and derivative transactions
Assets
Cash and bank deposits
The carrying amounts are used as fair values as these items are
settled within a short period of time and the fair values are nearly
equal to the carrying amounts.
Notes and accounts receivable – trade
The carrying amounts are used as fair values as these items are
generated in the normal course of business operations and prin-
cipally settled within a short period of time and the fair values are
nearly equal to the carrying amounts.
Finance receivables
Finance receivables are classified by certain terms to maturity, and
their fair values are determined based on the present values of the
respective future cash flows discounted using appropriate rates,
such as the rates of government bonds after adding credit risk
premiums based on the credit risk classes.
Investments
The fair values of investments are based on their respective market
values. Refer to Note 5, “Investments”, regarding the details of
securities classified by purpose for holding.
Liabilities
Notes and accounts payable – trade, Short-term loans payable and
Accrued expenses and accounts payable
The carrying amounts are used as fair values of these items as these
items are settled within a short period of time and the fair values
are nearly equal to such carrying amounts.
Long-term loans payable
Long-term loans payable are classified by certain terms to maturity,
and their fair values are determined based on the respective present
values of the total amount of principal and interest discounted
using the prevailing interest rates that would be applied if similar
loans were made at the valuation date.
Derivative transactions
Refer to Note 16, “Derivative Financial Instruments”.
2. Financial instruments for which it is extremely difficult to reason-
ably measure fair value
(In millions of yen)
(In thousands
of U.S. dollars)
March 31,
2012 2011 2012
Non-listed stocks and stocks
of unconsolidated
subsidiaries and affiliates ¥43,732 ¥44,309 $532,087
These financial instruments do not have any quoted market price,
and the future cash flow cannot be estimated and consequently are
recognized as extremely difficult to reasonably measure fair value.
Accordingly, such financial instruments are not included in Investments.
MITSUBISHI MOTORS CORPORATION
Annual Report 2012
48