Oki 2015 Annual Report Download - page 42

40 Annual Report 2015
*1 Cash and deposits are included in “Cash and cash equivalents” and “Time deposits” in the consolidated balance sheets.
*2 It comprises the allowance for doubtful receivables in respect to Notes and accounts receivable.
*3 Securities and investments in securities are included in “Cash and cash equivalents,” “Securities,” “Investments in and advances to
unconsolidated subsidiaries and affi liates” or “Other investments in securities” in the consolidated balance sheets.
*4 Long-term debt that will be reimbursed within one year is classifi ed as “Current portion of long-term debt” in the consolidated balance
sheets.
*5 The amount of the receivables and payables derived from derivative transactions is presented on a net basis and the amounts in parenthe-
ses are liabilities as the result of netting.
Notes:
1. Fair value measurements of fi nancial instruments and investment in securities and derivative transaction
Assets
(1) Cash and deposits, and (2) Notes and accounts receivable
These fair values are presented at amount recorded in balance sheets, since they are settled in a short period of time and their fair value
reasonably approximates the amount recorded in the balance sheets.
(3) Securities and investments in securities
The fair value of securities is based on the market price on the stock exchange. The fair value of bond is based on the quotes presented
by the fi nancial institutions.
Liabilities
(1) Notes and accounts payable, (2) Short-term borrowings, and (3) Other accrued expenses
These fair values are presented at amount recorded in balance sheets, since they are settled in a short period of time and their fair value
reasonably approximates the amount recorded in the balance sheets.
7. FINANCIAL INSTRUMENTS
(a) Summary of fi nancial instruments
The Group mainly uses short-term deposits and highly safe marketable securities for fund management, and raises its funds primarily through bor-
rowings from fi nancial institutions and issuance of corporate bonds.
The Group strives to mitigate credit risks associated with notes and accounts receivable from customers, which are operating receivables, by
carrying out customer credit investigations in accordance with regulations for the management of accounts receivable of individual companies.
For borrowings, the Group raises short-term funds mainly for working capital and long-term funds for working capital and capital investment. For
borrowings exposed to the interest rate risk, the Group applies derivative instruments (interest rate swap transactions) to hedge its risk.
The Group executes and manages derivative transactions in accordance with Oki Group’s policy.
(b) Disclosure about fair value of fi nancial instruments
The fair values of fi nancial instruments at March 31, 2015 and 2014 were summarized as follows:
Millions of yen Thousands of U.S. dollars
2015 2014 2015
Amount
recorded
in balance
sheet
Fair
value Difference
Amount
recorded
in balance
sheet
Fair
value Difference
Amount
recorded
in balance
sheet
Fair
value Difference
(1) Cash and deposits (*1)
¥ 53,632 ¥ 53,632 ¥ — ¥ 46,901 ¥ 46,901 ¥ — $ 446,933 $ 446,933 $ —
(2) Notes and accounts receivable 137,895 133,383 1,149,125
Allowance for doubtful receivables (*2) (7,346) (8,177) (61,216)
130,549 130,549 — 125,205 125,205 — 1,087,908 1,087,908 —
(3) Securities and investments in securities (*3) 28,742 29,803 1,060 27,017 26,274 (742) 239,516 248,358 8,833
Total assets 212,924 213,985 1,060 199,124 198,381 (742) 1,774,366 1,783,208 8,833
(1) Notes and accounts payable 79,053 79,053 — 73,312 73,312 — 658,775 658,775 —
(2) Short-term borrowings 44,981 44,981 — 55,410 55,410 — 374,841 374,841 —
(3) Other accrued expenses 36,060 36,060 — 34,956 34,956 — 300,500 300,500 —
(4) Long-term debt (*4) 62,589 62,844 255 63,594 63,664 70 521,575 523,700 2,125
Total liabilities 222,684 222,939 255 227,273 227,343 70 1,855,700 1,857,825 2,125
Derivative transactions (*5) ¥ 385 ¥ 385 ¥ — ¥ (524) ¥ (524) ¥ — $ 3,208 $ 3,208 $ —
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS