(5) Early Strengthening Account

Balance Sheet

(Unit: million yen)
Assets Liabilities and Net Assets
Item March 31, 2011 Item March 31, 2011
(Current Assets) 1,356,080 (Current Liabilities) 400,106
Cash and Deposits
23
DICJ Bonds (due for redemption within 1 year)
400,000
Short-term Loans
-
DICJ Bonds Issuing Cost (due for redemption within 1 year)
33
Securities
1,354,294
Accounts Payable
1
Accrued Income
2
Accrued Expenses Payable
71
Accounts Receivable
1,760    
    (Fixed Liabilities) 3
(Fixed Assets) 595,408
DICJ Bonds
-
Tangible Fixed Assets
2
Discount on DICJ Bonds
-
Buildings
2
Reserves for Retirement Allowance
3
Tools/Equipment/Fixtures
0    
Intangible Fixed Assets
0 (Liabilities Total) 400,110
Investment and Other Assets
595,406    
Loans for Contracted Bank
595,406 (Surplus)  
Guarantee Money and Other Security Deposit
-
Earned Surplus
1,551,378
   
Accumulated Funds
1,529,443
   
Current Profit
21,935
       
    (Net Assets Total) 1,551,378
       
Total 1,951,489 Total 1,951,489

Note: Figures are rounded down.

 

Profit and Loss Statement

(Unit: million yen)
Expenses Revenue
Item FY2010 Item FY2010
(Current Expenses) 8,594 (Current Revenue) 30,530
General Administrative Expenses
59
Income from the Contracted Bank
10,698
Non-Operating Expenses
8,535
Interest on Loans to Contracted Bank
6,150
Interest on DICJ Bonds
7,091
Non-Operating Income
13,681
Administrative Expenses for DICJ Bonds
3    
Loss on Redemption of Securities
1,440    
       
(Extraordinary Expenses)      
Loss from Retirement of Fixed Assets
0    
       
(Current Profit) 21,935    
       
Total 30,530 Total 30,530
 

The notes below refer to the items mentioned for the FY2010 settlement of accounts.

Notes: 1. Current profit of ¥21,935 million is added to the accumulated fund for the next fiscal year, pursuant to the provisions of Article paragraph 1 of the Ordinance of Enforcement of the Early Strengthening Act.
2. Figures are rounded down.
 
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: ¥4 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 allowances 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 on DICJ Bonds: equal depreciation over the period up to the term of bond redemption

(3)  Accounting criteria for revenue and expenses: accrual method

(4)  Others

Regarding payment by contracted banks under the provision of Article 13 of the Early Strengthening Act, the DICJ received the payments statement prepared under the account settlement for FY2010 from the RCC, a contracted bank, on May 31, 2011. In the RCC, the payments are accounted for as expenses in FY2010, 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 ¥6,031 million.

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