Wacom 2011 Annual Report Download - page 18

Notes to Consolidated Financial Statements
Assets
(1) Cash and deposits, (2) notes and accounts receiv-
able – trade and (3) accounts receivable - other
Due to expected settlement with in a short period of
time, we estimate that the carrying amount is equiva-
lent to market value.
Liabilities
(1) Notes and accounts payable – trade, (2) short-term
loans payable and (3) income taxes payable
Due to expected settlement with in a short period of
time, we estimate that the carrying amount is equiva-
lent to market value.
Derivatives transaction
See Note 13 “Derivatives”.
b) Financial instruments per which there is no readily
available information are reported at their carrying
value as of March 31, 2010 and 2011 are as follows.
These financial instruments do not have market prices.
And there is no readily available information to calcu-
late the current market value, thus omitted from fair
market value presentation.
c) Redemption schedule of financial instruments after
34
Notes: Matters related to method for calculating market value of financial
instruments and securities and derivatives transactions.
March 31, 2010
Thousands of yen
Financial instruments
Unlisted securities
Carrying amount
¥35,077
March 31, 2011
Thousands of yen
Financial instruments
Unlisted securities
Carrying amount
¥14,778
March 31, 2011
Thousands of U.S. dollars
Financial instruments
Unlisted securities
Carrying amount
$178
Due over one
year to 5 years
Due Over
10 years
Due over 5 years
to 10 years
Thousands of yen
March 31, 2010
Cash and deposits
Notes and accounts
receivable - trade
Accounts receivable
- other
Total
¥12,350,113
4,701,126
1,920,657
¥18,971,896
¥ -
-
-
¥ -
¥ -
-
-
¥ -
¥ -
-
-
¥ -
Due within
one year
Due over one
year to 5 years
Due Over
10 years
Due over 5 years
to 10 years
Thousands of yen
March 31, 2011
Cash and deposits
Notes and accounts
receivable - trade
Accounts receivable
- other
Total
¥10,454,820
4,323,650
1,562,297
¥16,340,767
¥ -
-
-
¥ -
¥ -
-
-
¥ -
¥ -
-
-
¥ -
Due within
one year
Due over one
year to 5 years
Due Over
10 years
Due over 5 years
to 10 years
Thousands of U.S. dollars (Note 1)
March 31, 2011
Cash and deposits
Notes and accounts
receivable - trade
Accounts receivable
- other
Total
$125,734
51,998
18,789
$196,521
$ -
-
-
$ -
$ -
-
-
$ -
$ -
-
-
$ -
Due within
one year
year ended March 31, 2010 and 2011.
(Additional information)
“Accounting Standard for Financial Instruments”
(Accounting Standards Board of Japan Statement No.
10, issued on March 10, 2008) and “Guidance on
Disclosure of fair value of financial instruments”
(Accounting Standards Board of Japan Guidance No.
19 issued on March 10, 2008) has been adopted
effective for the fiscal year ended March 31, 2010.
12. Investment securities:
Investment securities of ¥35,077 thousand on the
consolidated balance sheets for the fiscal year ended
March 31, 2010 do not have market prices. As there is
no readily available information to calculate the current
market value, these securities have been omitted from
the fair market value presentation.
Investment securities of ¥14,778 thousand ($178
thousand) on the consolidated balance sheets for the
fiscal year ended March 31, 2011 do not have market
prices. As there is no readily available information to
calculate the current market value, these securities
have been omitted from the fair market value presenta-
tion.
Thousands of U.S. dollars (Note 1)
(1)Cash and deposits
(2)
Notes and accounts receivable - trade
(3) Accounts receivable - other
Total assets
(1) Notes and accounts payable - trade
(2)Short-term loans payable
(3)Income taxes payable
Total liabilities
Derivatives (*)
$125,734
51,998
18,789
$196,521
48,038
7,216
2,662
$57,916
($386)
$125,734
51,998
18,789
$196,521
48,038
7,216
2,662
$57,916
($386)
$ -
-
-
$ -
-
-
$ -
$ -
March 31, 2011
Carrying Amount Fair value Difference
(*) Derivatives are expressed in net amount of receivables and payables,
and payables in net are expressed in ( ).
33
(3) Allocation of interest expense equivalents
Differences between total lease expenses and
purchase price equivalents of the leased properties
comprise interest expense equivalents and insurance,
maintenance and certain other operating costs.
Interest expense equivalents are allocated using the
interest method over the lease terms.
(4) Minimum lease payments under non-cancelable
operating leases are as follows:
There is no impairment losses allocated to leased
assets.
11. Financial instruments:
(1) Matters relating to financial instruments -
(a) Policy for financial instruments:
The Group's financing is mainly covered by the
internal fund, in terms of stable and low-cost financ-
ing. However, some short-term financial needs and
working capital needs may be covered by short-term
loan. Long-term financing is also flexible to demand
selecting appropriate vehicle from long-term debt,
issuance of new bond, or issuance of new shares.
Investment of surplus fund is limited in relatively
secure financial instruments with high liquidity and
high credit ratings.
The derivatives are used only for the purpose to avoid
a risk of future currency fluctuations, and any specu-
lative trading is strictly prohibited.
(b) Content of financial instruments and their risks and
risk management scheme:
“Notes and accounts receivable – trade” account as
operating receivables is exposed to credit risk of
customers. Such risks are controlled by the scheme
to keep track of due date and outstanding balance for
every customer, and check customer's credit status
on a regular basis according to the Company’s credit
limit management policy.
“Accounts receivable – other” account mainly
consists of operating receivables for supplied materi-
als to outsourcing production contractors and those
receivables are exposed to credit risk of each con-
tractor. Such risks are controlled by the scheme to
keep track of due date and outstanding balance for
each contractor. Net outstanding balance for such
contractors is relatively small because receivables are
net by payables balance for product purchase to
those contractors.
“Notes and account payable – trade” account as
operating payables is mostly due within one year.
“Short-term loans payable” account is primarily
utilized for financing relating to business transactions.
Liquidity risk for the operating payables and the
short-term loans payable is controlled by a monthly
cash flow forecast.
As to derivative transactions, in order to hedge the
risk of fluctuation in foreign currency monetary assets
and liabilities, the Company uses forward exchange
contracts. For execution and management of
derivative transactions, the finance department is
responsible for executing such transactions upon an
approval from authorized personnel in accordance
with the Company’s derivatives transaction policy that
defines approval authority and trading limit of transac-
tions. In addition, to reduce the risk of default on
derivatives trading, the Company limits trading
counterparties to high rated financial institutions only.
(c) Supplementary information concerning the fair
value of financial instruments:
The amount of derivatives contracts in the Notes to
"Derivatives Transaction" is the nominal value of
derivatives contracts or the calculated notional
amount only, and it does not show the size of market
risk relating to the derivative transaction itself.
(2) Fair value of financial instruments -
The following table presents the carrying amounts
recorded in the consolidated balance sheets as of
March 31, 2010 and 2011, estimated fair values of
financial instruments and the differences. Financial
instruments deemed extremely difficult to calculate
the current market value is not included.(See Note: b)
Thousands of yen Thousands of
U.S. dollars
Due within one year
Due after one year
Total minimum lease payments
¥100,514
110,897
¥211,411
¥96,364
94,668
¥191,032
$1,159
1,139
$2,298
2010 2011 2011
Thousands of yen
(1)Cash and deposits
(2)
Notes and accounts receivable - trade
(3) Accounts receivable - other
Total assets
(1) Notes and accounts payable - trade
(2)Short-term loans payable
Total liabilities
Derivatives (*)
¥12,350,113
4,701,126
1,920,657
¥18,971,896
4,983,535
600,000
¥5,583,535
(¥62,897)
¥12,350,113
4,701,126
1,920,657
¥18,971,896
4,983,535
600,000
¥5,583,535
(¥62,897)
¥ -
-
-
¥ -
-
-
¥ -
¥ -
March 31, 2010
Carrying Amount Fair value Difference
Thousands of yen
(1)Cash and deposits
(2) Notes and accounts receivable - trade
(3) Accounts receivable - other
Total assets
(1) Notes and accounts payable - trade
(2)Short-term loans payable
(3)Income taxes payable
Total liabilities
Derivatives (*)
¥10,454,820
4,323,650
1,562,297
¥16,340,767
3,994,330
600,000
221,326
¥4,815,656
(¥32,113)
¥10,454,820
4,323,650
1,562,297
¥16,340,767
3,994,330
600,000
221,326
¥4,815,656
(¥32,113)
¥ -
-
-
¥ -
-
-
¥ -
¥ -
March 31, 2011
Carrying Amount Fair value Difference