| (a) |
Maximum amounts of possible financial loss to the Group due to credit risk as of December 31, 2016 and 2017 are as follows: |
| (In millions of yen) | ||||||||
| December 31, 2016 |
December 31, 2017 |
|||||||
| Book value | Book value | |||||||
|
Demand deposits(1) |
134,690 | 123,593 | ||||||
|
Time deposits(1) |
10,764 | 12,002 | ||||||
|
Loan receivables(3) |
2 | 206 | ||||||
|
Guarantee deposits(1)(2) |
3,447 | 726 | ||||||
|
Trade and other receivables(3)(4) |
28,167 | 42,892 | ||||||
|
Japanese government bonds(1)(2) |
280 | 280 | ||||||
|
Corporate bonds and other debt instruments(1) |
7,643 | 8,835 | ||||||
|
Office security deposits(1)(5) |
6,028 | 5,904 | ||||||
|
|
|
|
|
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|
Total |
191,021 | 194,438 | ||||||
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|
|
|
|
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| (1) |
None of these assets were past due or impaired at the end of the respective reporting period. |
| (2) |
Refer to Note 15 Financial Assets and Financial Liabilities for details of the financial instruments being deposited under the Japanese Payment Services Act. |
| (3) |
For receivables, the Group’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The Group regularly performs credit assessments on customers and counterparties considering their financial position and historical data in order to manage the credit risk. The Group establishes an allowance for impairment that represents its estimate of incurred losses in respect of loan receivables, trade and other receivables. The main components of this allowance are a specific loss component that relates to individually significant exposures, and a collective loss component established for groups of similar assets in respect of losses that have been incurred but not yet identified. The collective loss allowance is determined based on historical experience for similar assets. |
| (4) |
The Group identifies concentrations of credit risk when a limited number of the Group’s counterparties that have similar characteristics or business activities, and thus are affected similarly by changes in economic or other conditions, account for a large portion of the entire trade and other receivables. The Group had significant concentrations of credit risk with two payment processing service providers, representing 38.5% and 30.5% of trade and other receivables as of December 31, 2016 and 2017, respectively. |
| (5) |
The amount mainly consists of the office security deposits paid for the Group’s office lease agreements. |