(3) Financial Revitalization Account

Balance Sheet

(Unit:¥million)
Assets Liabilities and Net Assets
Item End of March, 2013 (Reference) End of March, 2012 Item End of March, 2013 (Reference) End of March, 2012
(Current Assets) 4,032 3,996 (Current Liabilities) 545,696 811,413
Cash and Deposits
101 96
Short-Term Borrowings
195,400 211,000
Short-Term Loans
200
DICJ Bonds (due for redemption within one year)
350,000 600,000
Money Deposited
1,164 1,494
Discount on DICJ Bonds (due for redemption within one year)
2 (19)
Securities
2,019 1,668
Accounts Payable
120 109
Suspense Payments
12 19
Accrued Expensed Payable
148 297
Prepaid Expenses
45 17
Advance Payments Received
25 26
Accrued Income
460 378      
Accounts Receivable
228 122 (Fixed Liabilities) 1,300,018 1,050,231
     
DICJ Bonds
1,300,000 1,050,000
(Fixed Assets) 1,579,678 1,583,877
Discount on DICJ Bonds
(11) 201
Financial Assistance Related Assets
1,575,567 1,579,166
Reserves for Retirement Allowance
29 29
Purchased Assets
1,597,403 1,604,872      
Loan Loss Reserves
(21,835) (25,705) (Liabilities Total) 1,845,714 1,861,644
Tangible Fixed Assets
10 10      
Buildings
9 8 (Deficit) (262,003) (273,770)
Tools/Equipment/Fixtures
1 2
Deficit Brought Forward
(273,770) (287,869)
Intangible Fixed Assets
0 0
Current Profit
11,766 14,099
Investment and Other Assets
         
Loan to Specified Contracted Bank
4,100 4,700 (Net Assets Total) (262,003) (273,770)
Total 1,583,711 1,587,874 Total 1,583,711 1,587,874

Note: Figures are rounded off.

 

Profit and Loss Statement

(Unit:¥million)
Expenses Revenues
Item FY2012 (Reference)
FY2011
Item FY2012 (Reference)
FY2011
(Current Expenses) 34,402 43,294 (Current Revenue) 46,169 57,393
Administrative Expenses for Purchased Assets
4,419 7,451
Income from Operations for Purchased Assets
16,885 18,586
Loss on Sales of Purchased Assets
4,272 7,264
Income from Purchased Assets
16,422 16,427
Assets Purchasing Operation Expenses
102 102
Profit on Sales of Purchased Assets
462 2,159
Cost of Commissioning Management and Collection Business
43 85
Transfer Payments by Specified Contracted Bank
3,549 5,993
General Administrative Expenses
390 422
Interest on Loans to Specified Contracted Bank
24 50
Transfer to Loan Loss Reserves
21,835 25,705
Reversal from Loan Loss Reserves
25,705 32,758
Non-Operating Expenses
7,756 9,713
Non-Operating Revenues
3 4
Interest on Borrowing
225 337      
Interest on DICJ Bonds
6,567 9,051      
Administrative Expenses for DICJ Bonds
962 324      
           
(Extraordinary Expenses) 0 0      
Loss from Retirement of Fixed Assets 0      
Loss from Retirement of Fixed Assets 0 0      
           
(Current Total) 11,766 14,099      
Total 46,169 57,393 Total 46,169 57,393
Notes: 1. Current profit of ¥11,766 million is used to decrease loss brought forward from the previous fiscal year, 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 ¥20 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 FY2012 from the RCC (a specified contracted bank) on May 28, 2013. In the RCC, the payments are accounted for as expenses in FY2012, 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 ¥3,238 million in the following fiscal year.

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