Daiwa Securities Group Annual Report 2012 Corporate Summary Executive Messages Business Strategy Management Systems & CSR Financial Section Other Information 70 (Changes in accounting policy) Unapplied accounting policies (Additional Information) The Company adopted “Accounting Standard for Accounting Changes  and Error Corrections” (Accounting Standards Board of Japan  (“ASBJ”) Statement No. 24, issued on December 4, 2009) and  “Guidance on Accounting Standard for Accounting Changes and Error  Corrections” (ASBJ Guidance No. 24, issued on December 4, 2009)  for accounting changes and corrections of prior period errors which  are made from the fiscal year beginning on April 1, 2011. Effective April 1, 2011, the Company adopted “Accounting Standard  for Earnings Per Share” (ASBJ Statement No. 2 revised on June 30,  2010), and “Guidance on Accounting Standard for Earnings Per  Share” (ASBJ Guidance No. 4, revised on June 30, 2010). The method of calculating diluted earnings per share has been  changed to the method which adds the fair value of potential services  to be offered by the employees to the amount of payment from exer- cising the stock options whose rights are secured after the employ- ment for a certain period. As the earnings of fiscal year 2011 and  2012 result in loss, the Company doesn’t disclose fully diluted earn- ings per share. These amendments modify consolidation criteria for special purpose entities such that an investor in a special purpose entity is not exempted  from consolidation unless the investor is the transferor of assets to the special purpose entity. These amendments will be effective for annual  periods beginning on or after April 1, 2013. The Company is currently in the process of determining the effects of these new standards on the  consolidated financial statements. Margin transactions at March 31, 2012 and 2011 consisted of the following: 3. Margin transactions GLYPH<129>Revised Accounting Standard for Consolidated Financial Statements (ASBJ Statement No. 22) GLYPH<129>Revised Guidance on Disclosures about Certain Special Purpose Entities (ASBJ Guidance No. 15) GLYPH<129>Revised Guidance on Determining a Subsidiary and an Affiliate (ASBJ Guidance No. 22) GLYPH<129>Revised Control Criteria and Influence Criteria for Investment Associations (ASBJ PITF No. 20) Millions of yen Thousands of  U.S. dollars 2012 2011 2012 Assets: Customers’ margin loans ¥106,976 ¥114,480 $1,304,585 Cash deposits as collateral for securities borrowed  13,894 33,368 169,439 ¥120,870 ¥147,848 $1,474,024 Liabilities: Payable to securities finance companies ¥ 3,110 ¥ 4,774 $ 37,927 Proceeds of securities sold for customers’ accounts 49,646 56,623 605,439 ¥ 52,756 ¥ 61,397 $ 643,366 Customers’ margin loans are stated at amounts equal to the purchase amounts of the relevant securities, which are collateralized by customers’  securities and customers’ deposits. Proceeds of securities sold for customers’ accounts are stated at the sales amounts. 4. Collateralized short-term financing agreements Millions of yen Thousands of  U.S. dollars 2012 2011 2012 Assets: Securities purchased under agreements to resell ¥ 6,048 ¥  1,054 $ 73,756 Securities borrowed 5,729,144 7,326,792 69,867,610 ¥5,735,192 ¥7,327,846 $69,941,366 Liabilities: Securities sold under agreements to repurchase ¥ 810,545 ¥ 125,584 $ 9,884,695 Securities loaned 5,257,835 5,213,298 64,119,939 ¥6,068,380 ¥5,338,882 $74,004,634 Collateralized short-term financing agreements at March 31, 2012 and 2011 consisted of the following: