(3) Financial Revitalization Account

Balance Sheet

(Unit:¥million)
Assets Liabilities and Net Assets
Item End of March 2015 (Reference) End of March 2014 Item End of March 2015 (Reference) End of March 2014
(Current Assets) 4,530 3,155 (Current Liabilities) 447,342 671,602
Cash and Deposits
2,894 1,336
Short-Term Borrowings
246,900 171,300
Money Deposited
559 955
DICJ Bonds (due for redemption within one year)
200,000 500,000
Suspense Payments
72 7
Discount on DICJ Bonds (due for redemption within one year)
48 (5)
Prepaid Expenses
- 6
Accounts Payable
192 121
Accrued Income
706 557
Accrued Expensed Payable
180 163
Accounts Receivable
298 291
Advance Payments Received
21 23
           
      (Fixed Liabilities) 1,350,429 1,150,352
(Fixed Assets) 1,567,338 1,572,989
DICJ Bonds
1,350,000 1,150,000
Financial Assistance Related Assets
1,564,228 1,569,579
Discount on DICJ Bonds
393 317
Purchased Assets
1,582,319 1,589,376
Reserves for Retirement Allowance
36 35
Loan Loss Reserves
(18,090) (19,797)      
Tangible Fixed Assets
10 10 (Liabilities Total) 1,797,722 1,821,955
Buildings
9 8      
Tools/Equipment/Fixtures
1 1 (Deficit) (225,903) (245,810)
Intangible Fixed Assets
0 0
Deficit Brought Forward
(245,810) (262,003)
Investment and Other Assets
   
Current Profit
19,907 16,192
Loan to Specified Contracted Bank
3,100 3,400      
      (Net Assets Total) (225,903) (245,810)
Total 1,571,869 1,576,144 Total 1,571,869 1,576,144

Note: Figures are rounded off.

 

Profit and Loss Statement

(Unit:¥million)
Expenses Revenues
Item FY2014 (Reference)
FY2013
Item FY2014 (Reference)
FY2013
(Current Expenses) 25,318 28,874 (Current Revenue) 45,225 45,067
Administrative Expenses for Purchased Assets
3,122 3,973
Income from Operations for Purchased Assets
22,732 19,983
Loss on Sales of Purchased Assets
2,955 3,682
Income from Purchased Assets
22,185 19,397
Assets Purchasing Operation Expenses
118 113
Profit on Sales of Purchased Assets
546 586
Cost of Commissioning Management and Collection Business
48 39
Transfer Payments by Specified Contracted Bank
2,689 3,238
Compensation for Losses related to Acquired Assets
- 138
Interest on Loans to Specified Contracted Bank
4 5
General Administrative Expenses
422 423
Reversal from Loan Loss Reserves
19,797 21,835
Transfer to Loan Loss Reserves
18,090 17,797
Non-Operating Revenues
1 3
Non-Operating Expenses
3,681 4,680      
Interest on Borrowing
218 177      
Interest on DICJ Bonds
2,801 3,938      
Administrative Expenses for DICJ Bonds
661 564      
(Extraordinary Expenses)          
Loss from Retirement of Fixed Assets 0 0      
           
(Current Total) 19,907 16,192      
Total 45,225 45,067 Total 45,225 45,067
Notes:1. Current profit of ¥19,907 million is used to reduce the deficit brought forward, pursuant to the provision of Article 25, paragraph (2) of the Ordinance for Enforcement of the Act on Emergency Measures for the Revitalization of the Financial Functions (Rules of the Financial Reconstruction Commission No. 2 of 1998).
2. Figures are rounded off.
 

Important Accounting Principles and Other Relevant Matters

1. Evaluation Method for Securities
Cost method based on the periodic average method
2. Depreciation Method for Fixed Assets
Fixed installment method is used. The aggregate depreciation amount is as follows:
Tangible fixed assets: ¥22 million
Average durability is as follows:
Buildings: 8 to 18 years
Others: 3 to 20 years
3. Appropriation Criteria for Reserves
(1)Loan Loss Reserves
For claims related to failed debtors or debtors in damage of collapse as well as debtors who face or are highly likely to face serious problems in the repayment of debts although not yet in a state of business failure, the estimated amount recovered through collateral, etc. and the estimated amount recovered in light of debtors’ financial status and business performance are reduced from the amount of the claim, and the remainder is aggregated.
Claims other than the above are aggregated on the basis of a bad debt ratio found to be reasonable.
(2)Reserves for Retirement Allowance
The required remuneration at the end of the fiscal year is used as the criteria for appropriating reserves in preparation for payment of retirement allowances for employees.
4. Other Important Matters relating to Preparation of Financial Statements
(1)Accounting method for consumption tax, etc.: tax inclusive method
(2)Depreciation Method of DICJ Bonds Issuing Cost
Discount in DICJ bonds issue: equal depreciation over the period up to the term of bond redemption
(3)Appropriating Method of DICJ Bonds Issuing Cost
All the expenses are accounted for at the time of expenses.
(4)Other
Regarding payments by specified contracted bank under the provision of Article 53 of the Act on Emergency Measures for the Revitalization of the Financial Functions (Act No.132 of 1998), the DICJ received the payments statement prepared under the account settlement for FY2014 from the RCC (specified contracted bank) on May 22, 2015. In the RCC, the payments are accounted for as expenses in FY2014, but in the DICJ, they are accounted for as revenue in the following fiscal year in accordance with the provision of Article 4, paragraph (2) of the Accounting Regulations.
The amount of profit or loss arising from such accounting is estimated at ¥1,515 million in the following fiscal year.

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