(1) General 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) 1,633,977 926,875 (Current Liabilities) 128,196 125,140
Cash and Deposits
128,158 125,289
Accounts Payable
318 456
Short-Term Loans
100,072 50,088
Deposited Tenders/Dividends
55 68
Money Deposited
20 18
Money on Deposit
127,821 124,615
Securities
1,405,608 751,366
Suspense Receipts
0 2
Suspense Payments
1      
Prepaid Expenses
1      
Accounts Receivable
108 98 (Fixed Liabilities) 1,688,354 1,030,316
Loan Loss Reserves
7 13
Liability Reserves
1,688,012 1,030,030
     
Reserves for Retirement Allowance
341 286
(Fixed Assets) 183,028 229,036      
Financial Assistance Related Assets
803 978 (Liabilities Total) 1,816,550 1,155,457
Purchased Assets
4,869 7,115      
Securities
0 0 (Capital) 455 455
Loan Loss Reserves
(4,065) (6,137)
Government Capital
150 150
Assets Related to Contracted Bridge Bank
   
Bank of Japan Capital
150 150
Contracted Bridge Bank Shares
2,050 2,050
Private Capital
155 155
Assets Related to Contracted Bank
179,700 225,500      
Contracted Bank Shares
12,000 12,000 (Net Assets Total) 455 455
Loans for Contracted Bank
167,700 213,500      
Assets of Financial Institutions under Management
- -      
Loans of Financial Institutions under Management
226,527 226,527      
Loan Loss Reserves
(226,527) (226,527)      
Tangible Fixed Assets
148 170      
Buildings
133 151      
Tools/Equipment/Fixtures
14 19      
Intangible Fixed Assets
3 3      
Investment and Other Assets
         
Guarantee Money and Other Security Deposit
322 334      
Total 1,817,005 1,155,912 Total 1,817,005 1,155,912
 

Note: Figures are rounded off.

 

Profit and Loss Statement

(Unit:¥million)
Expenses Revenues
Item FY2013

(Reference)
FY2012

Item FY2013 (Reference)
FY2012
(Current Expenses) 917,740 875,129 (Current Revenue) 917,741 875,133
Financial Assistance Expenses
8,616 2,872
Insurance Premium Revenues
   
Monetary Grants
6,383 633
Deposit Insurance Premiums
622,346 606,561
Loss on Sales of Purchased Assets
2,222 2,221
Income from Financial Assistance-Related Business
0 6
Administrative Expenses for Purchased Assets
0
Income from Purchased Assets
0 0
Cost of Commissioning Management and Collection Recovery Business
11 18
Profit on Sales of Purchased Assets
0 6
Expenses for Operations to Purchase Deposits and Other Claims
0 1,373
Income from Purchase of Deposits and Other Claims
1,365
Expenses for Operations Related to Reorganization of Financial Institutions and Others
0 2
Income from Contracted Bank Business
59,914 30,519
Refunds of Insurance Premiums for Prior Periods
1 13
Interest on Loans to Contracted Bank
186 266
Payments to Government
15,406 23,401
Transfer Payments by Contracted Bank
59,728 30,253
Compensation for Losses Paid to Contracted Bank
3
Contributions related to Financial Institutions, etc. under Management
8 6
General Administrative Expenses
5,137 5,280
Income from Contribution by Contracted Bridge Bank
8 11
Transfer to Liability Reserves
657,982 609,520
Refunded Monetary Grants
1,871 3,526
Transfer to Loan Loss Reserves
230,593 232,664
Reversal from Loan Loss Reserves
232,664 232,628
Non-Operating Expenses
0
Non-Operating Income
928 508
           
(Extraordinary Expenses) 1 4      
Loss from Sale of Fixed Assets
0      
Loss from Retirement of Fixed Assets
1 3      
Total 917,741 875,133 Total 917,741 875,133

Note: 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 ¥433 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 debtors for whom statutory facts of business failure (e.g. bankruptcy or civil rehabilitation) have occurred, or debtors in an equivalent position, the estimated disposable collateral and estimated recoverable amount through guarantees are subtracted from the amount of the claim, and the remainder is aggregated.
For 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 in light of the debtors’ financial status and business performance, are reduced from the amount of the claim, and the remainder being aggregated as loan loss reserves. Claims other than the above are aggregated on the basis of a bad debt ratio deemed reasonable.

The balance of principals of loans to the Incubator Bank of Japan was transferred to the Liquidated Company of the Incubator Bank of Japan, which stated that the prospects for future repayment are uncertain. Therefore, loan loss reserves equivalent to the full amount of the balance (loan-loss charge of 100%) were recorded as in FY 2012.
(2)  Reserves for Retirement Allowance
The required remuneration at the end of fiscal year is used as the criteria for appropriating reserves in preparation for payment of retirement allowances for employees.
4. Provisions for liability reserves
At the end of each fiscal year, the DICJ must calculate a liability reserve for the General Account, to be set aside in accordance with ordinances of the Cabinet Office and the Ministry of Finance, as stipulated in Article 41 of the Deposit Insurance Act (Act No. 34 of 1971). Article 15 of the Ordinance for Enforcement of the Deposit Insurance Act (Ordinance of the Ministry of Finance No. 28 of 1971) stipulates that an amount of liability reserves that must be set aside cumulatively in each fiscal year shall be an amount equivalent to an amount obtained by subtracting the combined amount of expenses (excluding the transfer to liability reserves) and deficit brought forward from an amount of revenue in the fiscal year concerned.
 
5. Other Important Matters relating to Preparation of Financial Statements
(1) Accounting method for consumption tax, etc.: tax inclusive method
(2)

Other

ⅰ)  Regarding income from contracted bank under the provision of Article 7 of the Supplementary Provisions of the Deposit Insurance Act, the DICJ received the payments statement prepared under the account settlement for FY2013 from the RCC (contracted bank) on May 26, 2014. In the RCC, the payments are accounted for 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 ¥47,075 million in transfer payments by the contracted bank (of which the estimated amount of payments to the government is ¥13,791 million) in the following fiscal year.

ⅱ)  As insurance premiums are to be refunded based on a decision made at the 242th meeting of the Policy Board on March 24, 2014, on the premium rate for FY2013, ¥127,801 million in money on deposits, including ¥127,821 million, an amount equivalent to the insurance premium refunds, was reported.

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