(b) Derivative transactions (7) Securities, Private equity and other investments and investment  securities (12) Deposits for banking business (13), (15) Payables to customers and counterparties and  payables-other (11) Long-term debt (9), (10) Short-term borrowings and commercial paper (8) Trade account receivables, net Trade account receivables, net is stated as their book value because  fair values are similar to book value and they are settled in the  short term. These are stated as their book value because they are settled in the  short term and fair value is similar to book value. Concerning fair values of bonds and notes due within one year, these  are stated as their book value since the terms of the settlement period  are short and the fair values approximate the book values. Concerning fair values of bonds whose maturities are longer than  one year, in the case that market prices (trading price statistics, etc.) are  available in the market, fair values are calculated from the market  prices. If the market prices are not available, fair values are calculated  from book values which are adjusted with consideration of interest rate  fluctuations from the issuances and changes of credit spread of the  Company. The credit spread of the Company is referred to interest rate  of the latest issuance or market prices of similar bonds issued by the  Company, etc. Concerning fair value of long-term debts, these are calculated from  book values which are adjusted with consideration of interest rate  fluctuations from the issuances and changes of credit spread of the  Company. The credit spread of the Company is referred to interest rates  of the latest issuance or market prices of similar bonds issued by the  Company, etc. For demand deposits, the payment amounts required at the end of  the fiscal year are considered as fair value. In addition, fair values of fixed deposits are calculated by classifying  them based on their terms and by discounting the future cash flows. Discount rate is calculated by yield curve which includes credit  spread of the Group. For the fixed deposits whose maturity date is  within one year, their book value is considered as their fair value  because the fair value is close to the book value. These are mainly composed of deposit received and cash deposits  received as guarantee. Deposits received are mainly deposits received from customers and  payment amount (book value) when settled at the end of fiscal year is  considered as fair value. Other deposits are stated as their book value  since the terms of the settlement period are short and the fair values  approximate the book values. Cash deposits received as guarantee are mainly deposits as guaran- tee relating to derivative transactions and stated as their book value as  the terms of the settlement period deemed to be short with those  characteristics which are marked to market for each transaction.  Concerning the other cash deposits received as guarantee from cus- tomers, the payment amount (book value) when settled at the end of  this fiscal year is considered as fair values. 76 Other Information Financial Section Management Systems & CSR Business Strategy Executive Messages Corporate Summary Concerning OTC derivatives, both credit risk and liquidity risk  equivalent to the amount of the counterparty are added to the fair  value if necessary. Equities and others closing price or closing quotations at  the main stock exchange Bonds reasonably calculated price based on  immediately previous traded price  including similar bonds (OTC and  broker screen etc.) or market value  information (trading price statistics  etc.) by utilizing spread with index  interest rate, or reasonably calculated  price based on the value of collateral- ized assets Units of Investment trusts closing price or closing quotations at  the exchange, or net asset value Investment in partnership for investment in partnership, for  which allowance for possible invest- ment losses is calculated based on  the estimated recoverable values from  related real estate, the amount which  is calculated by deducting the allow- ance from the balance sheet amount  as of the fiscal year end and approxi- mates its fair value. Therefore, the  amount is deemed to be its fair value Derivatives traded at exchange mainly liquidation price at exchange  or basic price for calculation margin Interest rate swaps prices calculated by price valuation  models generally acknowledged at  the market or the model expanding  those, based on expected cash flow  calculated from yield curve, price and  coupon rate of underlying bond,  interest rates, discount rates, volatility,  correlation, etc. OTC equity derivatives prices calculated by price valuation  models generally acknowledged at  the market or the model expanding  those, based on price of equities or  equities indices, interest rates, divi- dends, volatility, discount rates, cor- relation, etc. Credit derivatives prices calculated by price valuation  models that is generally acknowl- edged at the market or the model  expanding those, based on all the  cash flow defined with discount rates  that is calculated from interest rates  and credit spread of the reference Daiwa Securities Group Annual Report 2012