Pioneer 2015 Annual Report Download - page 24

Millions of Yen Thousands of U.S. Dollars
2015 2015
Carrying
Amount Fair Value
Unrealized
Gain/Loss
Carrying
Amount Fair Value
Unrealized
Gain/Loss
Cash and cash equivalents ¥ 51,676 ¥ 51,676 – $ 430,633 $ 430,633 –
Time deposits 484 484 – 4,033 4,033 –
Receivables:
Trade receivables 79,158 79,158 – 659,650 659,650 –
Allowance for doubtful receivables (*1) (2,195) (2,195) – (18,292) (18,292) –
129,123 129,123 – 1,076,024 1,076,024 –
Investment securities:
Available-for-sale securities 1,882 1,882 – 15,683 15,683 –
Total ¥131,005 ¥131,005 – $1,091,707 $1,091,707 –
Short-term borrowings ¥ 17,871 ¥ 17,871 – $ 148,925 $ 148,925 –
Current portion of long-term debt 8,135 8,135 – 67,792 67,792 –
Trade payables 76,359 76,359 – 636,325 636,325 –
Income taxes payable 2,266 2,266 –18,883 18,883 –
Long-term debt 10,936 10,936 – 91,133 91,133 –
Total ¥115,567 ¥115,567 – $ 963,058 $ 963,058 –
Derivative transactions (*2) ¥ 141 ¥ 141 – $ 1,175 $ 1,175 –
(a) Fair values of financial instruments as of March 31, 2015 and 2014, were as follows:
*1. Allowance for doubtful receivables corresponding to trade receivables is deducted.
*2. Derivative transactions show the net amount after offsetting the receivables and payables.
Millions of Yen
2014
Carrying
Amount Fair Value
Unrealized
Gain/Loss
Cash and cash equivalents ¥ 33,904 ¥ 33,904 –
Time deposits 1,493 1,493 –
Receivables:
Trade receivables 85,560 85,560 –
Allowance for doubtful receivables (*1) (1,108) (1,108) –
84,452 84,452 –
Investment securities:
Available-for-sale securities 4,920 4,920 –
Total ¥124,769 ¥124,769 –
Short-term borrowings ¥ 22,178 ¥ 22,178 –
Current portion of long-term debt 67,476 67,476 –
Trade payables 71,657 71,657 –
Income taxes payable 2,817 2,817 –
Total ¥164,128 ¥164,128 –
Derivative transactions (*2) ¥ (12) ¥ (12) –
*1. Allowance for doubtful receivables corresponding to trade receivables is deducted.
*2. Derivative transactions show the net amount after offsetting the receivables and payables.
Cash and cash equivalents, time deposits and trade
receivables
The carrying values of cash and cash equivalents,
time deposits and trade receivables approximate fair
value because of their short maturities.
Investment securities
The fair values of investment securities are measured
at the quoted market price of the stock exchange for
the equity instruments. Fair value information for the
investment securities by classification is included in
Note 3.
Trade payables, short-term borrowings and income
tax payable
The carrying values of trade payables, short-term
borrowings and income tax payable approximate fair
value because of their short maturities.
Current portion of long-term debt and long-term debt
The fair values of the current portion of long-term
debt and long-term debt approximate fair value
because the market interest rates reflected in the
short-term period use mainly variable interests and
the credit status of the Company has not changed
significantly.
Derivatives
Fair value information for derivatives is included in
Note 18.
Liquidity risk management
Liquidity risk comprises the risk that the Group can-
not meet its contractual obligations in full on maturity
dates. The Company manages its liquidity risk by
holding adequate volumes of liquid assets, along with
adequate financial planning by the corporate treasury
department based on the liquidity requirement sched-
ule from each department.
(4) Fair values of financial instruments
Fair values of financial instruments are based on
quoted prices in active markets. If quoted prices
are not available, other rational valuation techniques
are used instead. Different assumptions may lead to
different fair values, since varying elements are incor-
porated in calculating the fair value. As for contract
amount or any other information disclosed in Note 18,
the amount itself does not indicate the market risk in
relation to derivative transactions.
44 Pioneer Corporation Annual Report 2015 45
Pioneer Corporation Annual Report 2015