Sharp 2011 Annual Report Download - page 57

Consolidated
Balance Sheet
Amount
55
Annual Report 2011
Financial Section
2011
(b) Fair values of financial instruments
Committee meeting which is held monthly and the
Finance Administration Committee meeting which is
required by the Company’s internal procedure. The
Treasury Department of Corporate Accounting and
Control Group executes transactions and reports the
result of such transactions to the Accounting
Department of Corporate Accounting and Control
Group on a daily basis. The Accounting Department
has set up the specialized section for transaction
results and position management, and reports the
result of transactions to the General manager of
Corporate Accounting and Control Group on a daily
basis.
In addition, the Treasury Department reports the
result of transactions to the Foreign Exchange
Administration Committee and the Finance Administration
Committee on a periodic basis. Its consolidated sub-
sidiaries also manage forward foreign exchange trans-
actions in accordance with the rules established by
the Company, and report the content of such trans-
actions to the Company on a monthly basis. For inter-
est swap contracts and currency swap contracts, its
consolidated subsidiaries execute transactions after
the Company approves.
For other securities and investments in capital, the
Company regularly monitors prices and issuer’s finan-
cial positions, and continually reviews the possession
by taking these indices as well as the relationship with
issuers into consideration.
[3] Management of liquidity risk in financing activities
The Treasury Department manages the liquidity risk by
making and updating the financial plans, based on reports
from each section, and maintains ready liquidity.
(4) Supplementary explanation of fair value of financial
instruments
The fair value of financial instruments is based on the
quoted market price in active market, but in case a mar-
ket price is not available, reasonably estimated prices are
included in the fair value. As variable factors are incor-
porated in the determination of this reasonably estimated
price, it may vary depending on different assumptions.
The contract amount related to derivative transactions
has nothing to do with the market risk related to the deriv-
ative transactions.
The consolidated balance sheet amounts, fair values and differences between the two, as of March 31, 2010 and 2011 are as
follows:
(1) Cash and cash equivalents, Time deposits, and Short-term investments
(2) Notes and accounts receivable
(3) Investments in securities
1) Shares of nonconsolidated subsidiaries and affiliates
2) Other securities
Total Assets
(4) Notes and accounts payable (excluding other accounts payable)
(5) Bank loans and Current portion of long-term borrowings
(included in short-term borrowings)
(6) Commercial paper (included in short-term borrowings)
(7) Straight bonds (included in short-term borrowings and long-term debt)
(8) Bonds with subscription rights to shares (included in long-term debt)
(9) Long-term borrowings (included in long-term debt)
Total of Liabilities
(10) Derivative transactions*
Yen (millions)
DifferenceFair Value
¥0
(3,752)
(498)
0
(4,250)
0
0
0
3,947
(5,786)
1,369
(470)
(7)
¥ 247,888
573,674
2,866
49,424
873,852
531,638
128,453
139,766
229,283
195,997
126,992
1,352,129
(1,166)
¥ 247,888
577,426
3,364
49,424
878,102
531,638
128,453
139,766
225,336
201,783
125,623
1,352,599
(1,159)