| 15. |
Financial Assets and Financial Liabilities |
The carrying amounts and fair value of financial instruments, except for cash and cash equivalents, by line item in the Consolidated Statements of Financial Position and by category as defined in IAS39 Financial Instruments: Recognition and Measurement as of December 31, 2016 and 2017 are as follows:
The fair value is not disclosed for those financial instruments whose fair value approximates their carrying amount due to their short-term and/or variable-interest bearing nature among those not measured at fair value in the Consolidated Statements of Financial Position. Refer to Note 26 Fair Value Measurements for more details on the fair value information of the financial instruments whose fair value is disclosed in this footnote.
| (In millions of yen) | ||||||||||||||||
| December 31, 2016 | December 31, 2017 | |||||||||||||||
|
Items |
Book value | Fair value | Book value | Fair value | ||||||||||||
|
Financial assets |
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|
Trade and other receivables |
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|
Loans and receivables |
28,167 | 42,892 | ||||||||||||||
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Other financial assets, current |
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Loans and receivables |
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Time deposits |
764 | 12,002 | ||||||||||||||
|
Short-term loans |
2 | 206 | ||||||||||||||
|
Corporate bonds and other debt instruments |
4,012 | 849 | ||||||||||||||
|
Available-for-sale financial assets |
1,000 | 1,000 | 6 | 6 | ||||||||||||
|
Office security deposits |
1,170 | 195 | ||||||||||||||
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Other |
4 | — | ||||||||||||||
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Total |
6,952 | 13,258 | ||||||||||||||
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|
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Other financial assets, non-current |
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Held-to-maturity investments(1) |
280 | 294 | 280 | 291 | ||||||||||||
|
Loans and receivables |
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Time deposits |
10,000 | 10,000 | — | — | ||||||||||||
|
Corporate bonds and other debt instruments |
2,632 | 2,632 | 7,986 | 8,036 | ||||||||||||
|
Guarantee deposits(1) |
3,447 | 726 | ||||||||||||||
|
Office security deposits |
4,858 | 4,739 | 5,709 | 5,546 | ||||||||||||
|
Financial assets at fair value through profit or loss |
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Conversion right and redemption right of |
325 | 325 | 1,862 | 1,862 | ||||||||||||
|
Available-for-sale financial assets(2) |
14,141 | 14,141 | 15,388 | 15,388 | ||||||||||||
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Other |
32 | 133 | ||||||||||||||
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Total |
35,715 | 32,084 | ||||||||||||||
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| (In millions of yen) | ||||||||||||||||
| December 31, 2016 | December 31, 2017 | |||||||||||||||
|
Items |
Book value | Fair value | Book value | Fair value | ||||||||||||
|
Financial liabilities |
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|
Trade and other payables |
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|
Financial liabilities measured at amortized cost |
21,532 | 28,810 | ||||||||||||||
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|
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Other financial liabilities, current |
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Financial liabilities measured at amortized cost |
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Deposits received |
2,572 | 5,730 | ||||||||||||||
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Short-term borrowings(3) |
21,925 | 22,224 | ||||||||||||||
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Others |
— | 49 | ||||||||||||||
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Total |
24,497 | 28,003 | ||||||||||||||
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|
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Other financial liabilities non-current |
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Financial liabilities at fair value through profit or loss |
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|
Put option liabilities |
— | — | 486 | 486 | ||||||||||||
|
Financial liabilities measured at amortized cost |
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Office security deposits received under sublease agreement |
— | — | 23 | 23 | ||||||||||||
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Others |
— | 93 | ||||||||||||||
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|
|
|
|
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Total |
— | 602 | ||||||||||||||
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| (1) |
The Japanese Payment Services Act requires non-banking entities that engage in business activities involving advance payments from end users to secure a certain amount of money equal to or more than one half of the unused balance of virtual credits purchased by the end users as of the most recent base date set on March 31 and September 30 of each year, either by depositing or entrusting a cash reserve or government bonds with the Legal Affairs Bureau, or by concluding a guarantee contract with a financial institution. If deposits are made, they are recorded as guarantee deposits. If guarantee contracts are entered into, guarantee fees equal to the contractual amount times a guarantee fee rate are incurred. In accordance with the Japanese Payment Services Act, the Group had deposited cash of 3,445 million yen and 635 million yen as of December 31, 2016 and 2017, respectively. The Group also had deposited investments in Japanese government bonds of 280 million yen and 280 million yen as of December 31, 2016 and 2017, respectively, which the Group intends to hold until maturity for this purpose. In addition, the Group had credit guarantee contracts with banks for 10,100 million yen with a guarantee fee rate of 0.1% and for 12,500 million yen with a weighted average guarantee fee rate of 0.1% as of December 31, 2016 and 2017, respectively, to comply with the Japanese Payment Services Act. |
| (2) |
Impairment losses of 293 million yen and 1,761 million yen were recognized for available-for-sale financial assets for the year ended December 31, 2016 and 2017, respectively. Also, gain on sale of 751 million yen was recognized for available-for-sale financial assets for the year ended December 31, 2017. |
| (3) |
The weighted average interest rate of the remaining outstanding short-term borrowings as of December 31, 2016 and 2017 was 0.1% and 0.1%, respectively. |