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Notes to Consolidated Financial Statements
b) Fair Value of Financial Instruments
The carrying amounts and fair values of the financial instruments on the consolidated balance sheet at March 31, 2012 and
2011 are as follows. Financial instruments whose fair value is hard to determine are not included in the table.
Millions of yen
Thousands of U.S. dollars
2012 2011 2012
Carrying
amount Fair value Difference
Carrying
amount Fair value Difference
Carrying
amount Fair value Difference
Cash and time deposits........ ¥132,657 ¥132,657 ¥ — ¥142,287 ¥142,287 ¥ — $ 1,614,028 $ 1,614,028 $ —
Trade notes and
accounts receivable.............. 500,857 500,857 — 425,187 425,187 — 6,093,892 6,093,892 —
Securities, investments in
unconsolidated subsidiaries
and affiliates and investment
securities............................. 251,079 282,350 31,271 309,691 337,369 27,678 3,054,861 3,435,333 380,472
Total assets........................... 884,593 915,864 31,271 877,165 904,843 27,678 10,762,781 11,143,253 380,472
Trade notes and
accounts payable................ 316,584 316,584 — 254,067 254,067 — 3,851,855 3,851,855 —
Short-term debt.................... 140,064 140,064 — 81,857 81,857 — 1,704,149 1,704,149 —
Bonds................................... 71,850 73,136 1,286 95,000 96,921 1,921 874,194 889,841 15,647
Long-term debt..................... 150,608 152,980 2,372 163,590 165,704 2,114 1,832,437 1,861,297 28,860
Total liabilities........................ 679,106 682,764 3,658 594,514 598,549 4,035 8,262,635 8,307,142 44,507
Derivative transactions.......... 369 369 — (30) (30) — 4,490 4,490 —
(1) Valuation approach for the fair value of financial instruments
Cash and time deposits, trade notes and accounts
receivable:
The carrying amount approximates fair value because of the
short maturity.
Securities, investments in unconsolidated subsidiaries
and affiliates and investment securities:
Securities in current assets are stated at the carrying amount
which approximates fair value because they consist of
negotiable certificates of deposit settled in the short term.
Investments in unconsolidated subsidiaries and affiliates and
investment securities, which have a quoted market value, are
stated at the fair market value. The fair value of those which
do not have a quoted market value is estimated based on the
present value of future cash flows using appropriate current
discount rates.
Trade notes and accounts payable:
The carrying amount approximates fair value because of the
short maturity.
Short-term debt:
The carrying amount approximates fair value because of the
short maturity.
Bonds:
The fair value of bonds is stated at the fair market value.
Long-term debt:
The fair value of long-term debt is estimated based on the
present value of future cash flows using appropriate current
discount rates.
Derivative transactions:
See Note 6.
(2) Financial instruments whose fair value is hard to determine
Thousands of
Millions of yen U.S. dollars
2012 2011 2012
Unlisted securities
(available-for-sale
securities)........................¥ 8,561 ¥ 9,228 $ 104,161
Unlisted investments in
unconsolidated
subsidiaries and
affiliates........................... 109,197 97,547 1,328,592
These financial instruments do not have quoted market value
and their future cash flows cannot be estimated. Because
the fair value is hard to determine, these instruments are
not included in “Securities, investments in unconsolidated
subsidiaries and affiliates and investment securities.”
Annual Report 2012
SUMITOMO ELECTRIC
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