(5) Early Strengthening Account

Balance Sheet

(Unit:¥million)
Assets Liabilities and Net Assets
Item March 31,
2012
(Reference)
March 31,
2011
Item March 31,
2012
(Reference)
March 31,
2011
(Current Assets) 965,203 1,356,080 (Current Liabilities) 1 400,106
Cash and Deposit
21 23
DICJ Bonds (due for redemption within 1 year)
400,000
Securities
964,445 1,354,294
DICJ Bonds Issuing Cost (due for redemption within 1 year)
33
Suspense Payments
2 2
Accounts Payable
1 1
Accrued Income
734 1,760
Accrued Expense Payable
71
Accounts Receivable
0      
      (Fixed Liabilities)    
(Fixed Assets) 595,408 595,408
Reserves for Retirement Allowance
4 3
Tangible Fixed Assets
2 2      
Buildings
1 2 (Liabilities Total) 5 400,110
Tools/Equipment/Fixtures
0 0      
Intangible Fixed Assets
0 0 (Surplus)    
Investments and Other Assets
   
Earned Surplus
1,560,607 1,551,378
Loans for Contracted Bank
595,406 595,406
Accumulated Funds
1,551,378 1,529,443
     
Current Profit
9,228 21,935
           
      (Net Assets Total) 1,560,607 1,551,378
Total 1,560,612 1,951,489 Total 1,560,612 1,951,489

Note: Figures are rounded off.

 

Profit and Loss Statement

(Unit:¥million)
Expenses Revenue
Item FY2011 (Reference)
FY2010
Item FY2011 (Reference)
FY2010
(Current Expenses) 4,614 8,594 (Current Revenue) 13,842 30,530
General Administrative Expenses
57 59
Income from the Contracted Bank
6,031 10,698
Non-operating Expense
4,557 8,535
Interest on Loans to Contracted Bank
2,138 6,150
Interest on DICJ Bonds
2,079 7,091
Non-Operating Income
5,672 13,681
Administrative Expenses for DICJ Bonds
1 3      
Loss on Redemption of Securities
2,476 1,440      
           
(Extraordinary Expenses)          
Loss from Retirement of Fixed Assets
0 0      
           
(Current Profit) 9,228 21,935      
Total 13,842 30,530 Total 13,842 30,530
Notes: 1. Current profit of ¥9,228 million is added to the accumulated fund for the next fiscal year, pursuant to the provisions of Article 8 paragraph 1 of the Ordinance of Enforcement of the Early Strengthening Act.
2. Figures are rounded off.
 

The notes below refer to the items mentioned for the FY2011 settlement of accounts.

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 using the criteria under the Corporation Tax Act. The aggregate depreciation amount is as follows:
Tangible fixed assets: ¥5 million
3. Appropriation Criteria for Reserves
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 allowance for employees.
4. Other Important Matters Relating to Preparation of Financial Statements
  (1) Accounting method for consumption tax: 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) Accounting criteria for revenue and expenses: accrual method
  (4) Other
Regarding compensation for losses of contracted banks under the provision of Article 12 of the Act on Emergency Measures for Early Strengthening of Financial Functions (Act No.143 of 1998), the DICJ received the application for compensation for losses prepared under the account settlement for FY2011 from the RCC, a contracted bank, on May 31, 2012. In the RCC, the payments are accounted for as expenses in FY2011, 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 ¥61,069 million.

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