(3) Financial Revitalization Account

Balance Sheet

(Unit:¥million)
Assets Liabilities and Net Assets
Item End of March, 2014 (Reference) End of March, 2013 Item End of March, 2014 (Reference) End of March, 2013
(Current Assets) 3,155 4,032 (Current Liabilities) 671,602 545,696
Cash and Deposits
1,336 101
Short-Term Borrowings
171,300 195,400
Money Deposited
955 1,164
DICJ Bonds (due for redemption within one year)
500,000 350,000
Securities
2,019
Discount on DICJ Bonds (due for redemption within one year)
(5) 2
Suspense Payments
7 12
Accounts Payable
121 120
Prepaid Expenses
6 45
Accrued Expensed Payable
163 148
Accrued Income
557 460
Advance Payments Received
23 25
Accounts Receivable
291 228      
      (Fixed Liabilities) 1,150,352 1,300,018
(Fixed Assets) 1,572,989 1,579,678
DICJ Bonds
1,150,000 1,300,000
Financial Assistance Related Assets
1,569,579 1,575,567
Discount on DICJ Bonds
317 (11)
Purchased Assets
1,589,376 1,597,403
Reserves for Retirement Allowance
35 29
Loan Loss Reserves
(19,797) (21,835)      
Tangible Fixed Assets
10 10 (Liabilities Total) 1,821,955 1,845,714
Buildings
8 9      
Tools/Equipment/Fixtures
1 1 (Deficit) (245,810) (262,003)
Intangible Fixed Assets
0 0
Deficit Brought Forward
(262,003) (273,770)
Investment and Other Assets
   
Current Profit
16,192 11,766
Loan to Specified Contracted Bank
3,400 4,100      
      (Net Assets Total) (245,810) (262,003)
Total 1,576,144 1,583,711 Total 1,576,144 1,583,711

Note: Figures are rounded off.

 

Profit and Loss Statement

(Unit:¥million)
Expenses Revenues
Item FY2013 (Reference)
FY2012
Item FY2013 (Reference)
FY2012
(Current Expenses) 28,874 34,402 (Current Revenue) 45,067 46,169
Administrative Expenses for Purchased Assets
3,973 4,419
Income from Operations for Purchased Assets
19,983 16,885
Loss on Sales of Purchased Assets
3,682 4,272
Income from Purchased Assets
19,397 16,422
Assets Purchasing Operation Expenses
113 102
Profit on Sales of Purchased Assets
586 462
Cost of Commissioning Management and Collection Business
39 43
Transfer Payments by Specified Contracted Bank
3,238 3,549
Compensation for Losses related to Acquired Assets
138
Interest on Loans to Specified Contracted Bank
5 24
General Administrative Expenses
423 390
Reversal from Loan Loss Reserves
21,835 25,705
Transfer to Loan Loss Reserves
17,797 21,835
Non-Operating Revenues
3 3
Non-Operating Expenses
4,680 7,756      
Interest on Borrowing
177 225      
Interest on DICJ Bonds
3,938 6,567      
Administrative Expenses for DICJ Bonds
564 962      
(Extraordinary Expenses) 0 0      
Loss from Sale of Fixed Assets 0      
Loss from Retirement of Fixed Assets 0 0      
(Current Total) 16,192 11,766      
Total 45,067 46,169 Total 45,067 46,169
Notes: 1. Current profit of ¥16,192 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 ¥21 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 deemed 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 FY2013 from the RCC (specified contracted bank) on May 26, 2014. In the RCC, the payments are accounted for as expenses in FY2013, 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 ¥2,689 million in the following fiscal year.

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