Notes to Consolidated Financial Statements SMFG * 1 Loans and bills discounted do not include general reserve for possible loan losses and specific reserve for possible loan losses. The reserves for possible losses on “Cash and  due from banks and Deposits with banks,” “Call loans and bills bought,” “Monetary claims bought,” “Foreign exchanges,” and “Lease receivables and investment assets” are  deducted directly from “Consolidated balance sheet amount” since they are immaterial. * 2 The amounts collectively represent the derivative transactions which are recorded on “Trading assets,” “Trading liabilities,” “Other assets” and “Other liabilities.” Debts and  credits arising from derivative transactions are presented on a net basis. 1) Cash and due from banks and Deposits with banks,  2) Call loans and bills bought, 3) Receivables under resale  agreements, 4) Receivables under securities borrowing  transactions, 9) Loans and bills discounted, 10) Foreign  exchanges, and 11) Lease receivables and investment assets: Of these transactions, the book values of dues from banks  without maturity and overdrafts with no specified repay- ment dates are regarded to approximate their fair values;  thus, their fair values are their book values. For short-term transactions with remaining life as of the  end of the fiscal year not exceeding 6 months, their fair  values are, in principle, their book value as book values are  regarded to approximate fair values. The fair value of those with a remaining life of more  than 6 months is, in principle, the present value of  future cash flows (calculated by discounting estimated  future cash flows, taking into account factors such as the  borrower’s internal rating and pledged collateral, using a  rate comprising a risk-free interest rate and an overhead  ratio). Certain consolidated subsidiaries of SMFG calculate  the present value by discounting the estimated future cash  flows computed based on the contractual interest rate,  using a rate comprising a risk-free interest rate and a credit  risk premium. Regarding claims on bankrupt borrowers, effectively  SMFG  2011 103 Millions of U.S. dollars 2011 March 31 Consolidated balance  sheet amount  Fair value Net unrealized gains  (losses) 1) Cash and due from banks and Deposits with banks*$^{1}$ ....................... $ 110,971 $ 111,048 $ 77 2) Call loans and bills bought*$^{1}$ ........................................................... 10,235 10,240 5 3) Receivables under resale agreements ................................................ 1,577 1,577 0 4) Receivables under securities borrowing transactions ........................ 57,010 57,010 — 5) Monetary claims bought*$^{1}$ ............................................................... 13,358 13,435 77 6) Trading assets Securities classified as trading purposes ........................................ 37,388 37,388 — 7) Money held in trust ......................................................................... 289 289 — 8) Securities Bond classified as held-to-maturity .............................................. 50,298 51,018 720  Other securities ........................................................................... 419,375 419,375 — 9) Loans and bills discounted ............................................................... 737,803  Reserve for possible loan losses*$^{1}$ ................................................. (9,772) 728,031 740,671 12,640 10) Foreign exchanges*$^{1}$ ........................................................................ 12,903 12,947 44 11) Lease receivables and investment assets*$^{1}$ ......................................... 20,684 21,845 1,161 Total assets ...................................................................................... $1,462,119 $1,476,843 $14,724 1) Deposits .......................................................................................... $ 986,157 $ 986,351 $ 194 2) Negotiable certificates of deposit ..................................................... 100,617 100,611 (6) 3) Call money and bills sold ................................................................. 31,622 31,622 (0) 4) Payables under repurchase agreements ............................................. 8,736 8,736 — 5) Payables under securities lending transactions ................................. 68,710 68,710 — 6) Commercial paper ........................................................................... 4,054 4,054 — 7) Trading liabilities Trading securities sold for short sales ........................................... 19,520 19,520 — 8) Borrowed money ............................................................................. 129,521 129,653 132 9) Foreign exchanges ........................................................................... 3,081 3,081 — 10) Short-term bonds ............................................................................. 14,230 14,230 — 11) Bonds .............................................................................................. 46,495 47,536 1,041 12) Due to trust account ........................................................................ 2,600 2,600 — Total liabilities ................................................................................ $1,415,343 $1,416,704 $ 1,361 Derivative transactions* 2 Hedge accounting not applied ..................................................... $ 194  $ 194  $ — Hedge accounting applied ........................................................... 4,305 4,305 — Total ................................................................................................ $ 4,499 $ 4,499 $ — (b) Fair value calculation methodology for financial  instruments Assets