(1) General 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) 113,390 6,149 (Current Liabilities) 635 93,238
Cash and Deposits
638 794
Short-Term Borrowings
92,300
Short-Term Loans
20,022 5,064
Accounts Payable
612 906
Money Deposited
153 219
Accrued Expenses Payable
9
Securities
92,540
Money on Deposit
21 22
Prepaid Expenses
0 1
Suspense Receipts
2 0
Accrued Income
32 176      
Accounts Receivable
2 0 (Fixed Liabilities) 420,773 137,565
Loan Loss Reserves
(105)
Liability Reserves
420,509 137,348
     
Reserves for Retirement Allowance
263 216
(Fixed Assets) 308,473 225,109      
Financial Assistance Related Assets
23,178 23,289 (Liabilities Total) 421,408 230,804
Purchased Assets
29,279 30,445      
Securities
0 (Capital) 455 455
Loan Loss Reserves
(6,100) (7,155)
Government Capital
150 150
Deposits and Other Assets Related to Asset
         
Purchase Operations
   
Bank of Japan Capital
150 150
Deposits and Other Claims Purchased
2,438 2,421      
Assets Related to Contracted Bridge Bank
   
Private Capital
155 155
Contracted Bridge Bank Shares
2,050 4,170      
Assets Related to Contracted Bank
280,300 107,600 (Deficit)
Contracted Bank Shares
12,000 12,000
Deficit Brought Forward
(273,260)
Loans for Contracted Bank
268,300 95,600
Current Profit
273,260
Assets of Financial Institutions Under
         
Management
87,175 (Net Assets Total) 455 455
Loans of Financial Institutions Under
         
Management
226,527 348,700      
Loan Loss Reserves
(226,527) (261,525)      
Tangible Fixed Assets
178 187      
Buildings
178 160      
Tools/Equipment/Fixtures
20 26      
Intangible Fixed Assets
3 2      
Investment and Other Assets
         
Guarantee Money and Other Security Deposit
324 263      
Total 421,863 231,259 Total 421,863 231,259
 

Note: Figures are rounded off.

 

Profit and Loss Statement

(Unit:¥million)
Expenses Revenues
Item FY2011 (Reference)
FY2010
Item FY2011 (Reference)
FY2010
(Current Expenses) 1,002,262 448,894 (Current Revenue) 1,011,208 722,155
Financial Assistance Expenses
127,468 524
Insurance Premium Revenues
   
Monetary Grants
126,439 18
Deposit Insurance Premiums
702,932 679,397
     
Income from Financial Assistance-Related
   
Loss on sales of Purchased Assets
1,013 485
Business
0 0
     
Income from Purchased Assets
0 0
Administrative Expenses for Purchased Assets
0 5      
Cost of Commissioning Management and
   
Profit on Sales of Purchased Assets
0 0
Collection Recovery Business
15 15      
Expenses for Operations to Purchase Deposits
   
Interest on Loans of Financial Institutions Under
   
and Other Claims
0 18
Management
53 140
Expenses for Operations Related to Financial
         
Institutions under Management
11,315
Income from Contracted Bank Business
27,045 33,281
Expenses for Operations Related to
         
Reorganization of Financial Institutions and
0
Interest on Loans to Contracted Bank
   
Others
10 50
Transfer Payments by Contracted Bank
   
Refunds of Insurance Premiums for Prior
25,023 33,941
Income from Contribution by Contracted
   
Periods 6,036 7,891
Bridge Bank
34 38
Payments to Government
316,467
Refunded Monetary Grants
1,093 1,556
General Administrative Expenses
283,160 137,348
Reversal from Loan Loss Reserves
268,786 7,694
Transfer to Jusen Account
   
Non-Operating Income
11,260 44
Transfer to Liability Reserves
232,628 268,786      
  131 332      
Transfer to Loan Loss Reserves
131 330      
Non-Operating Expenses
0 1      
Interest on Borrowing
     
Administrative Expenses for Borrowings
         
Miscellaneous Loss
8,946 0      
  7 0      
(Extraordinary Expenses)          
Loss from Retirement of Fixed Assets
8,939      
Loss on Sales of Stocks of Subsidiaries
         
and Affiliates
         
Total 1,011,208 722,155 Total 1,011,208 722,155
 
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:
Financial Assistance Operating Assets ¥25 million
Tangible Fixed Assets ¥437 million
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 composition) 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 the principal of loans outstanding to the Incubator Bank amounted to ¥226,527 million, as the DICJ received ¥144,829 million on March 23, 2012 as the first repayment from said borrower based on the civil rehabilitation plan of said bank (repayment rate of 39%).
As the financial administrator notified the DICJ that the future repayment plan (interim and final repayments based on the civil rehabilitation plan) was yet to be determined, the entire balance of principal of loans (loan-loss charge of 100%) has been included as provisions for loan loss reserves.
(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 business 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 Deposit Insurance Act. Article 15 of the Ordinance for Enforcement on the Deposit Insurance Act stipulates that an amount of liability reserves that must be set aside cumulatively in each business year shall be an amount equivalent to an amount obtained by subtracting the combined amount of expenses (excluding the transfer to liability reserves) and loss carried forward from an amount of revenue in the business year concerned.
 
5. Other Important Matters relating to Preparation of Financial Statements
(1) Accounting method for consumption tax: tax inclusive method
(2) Accounting criteria for revenue and expenses: accrual method
(3)

Other

i)  Regarding income from contracted banks under the provision of Article 7 of the Supplementary Provisions of Deposit Insurance Act (Act No. 34 of 1971; hereinafter referred to as the “Act”), the DICJ received the payments statement prepared under the account settlement for FY2011 from the RCC (Contracted Bank) on May 29, 2012. In the RCC, the payments are accounted for 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 30,253 million in transfer payments by the contracted bank (of which the estimated amount of payments to the government is ¥22,778 million) in the following fiscal year.

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