Notes to Consolidated Financial Statements SMFG Notes: 1. SMFG applies deferred hedge accounting stipulated in “Treatment for Accounting and Auditing Concerning Accounting for Foreign Currency Transactions in  Banking Industry” (JICPA Industry Audit Committee Report No. 25). 2. Fair value is calculated using discounted present value. 3. Forward foreign exchange amounts treated by the allocation method are treated with the deposit or other transaction that is subject to the hedge. Therefore such fair  value is included in the fair value of the relevant transaction subject to the hedge in “30. Financial Instruments.” Millions of yen March 31 2011 Hedge accounting method Principal items hedged Contract amount Type of derivative Total Over 1 year Fair value Deferral hedge method Currency swaps. ................................................... Foreign currency denomi- nated loans and bills  discounted; other securities  (bonds); deposits; foreign  currency exchange, etc. ¥2,776,330 ¥1,882,407 ¥338,351 Forward foreign exchange .................................... 9,615 — (172) Recognition of gain or loss  on the hedging instrument Currency swaps. ................................................... Deposits 12,038 11,139 (248) Allocation method Currency swaps. ................................................... Deposits; borrowed money 11,739 11,405 (Note 3) Forward foreign exchange .................................... 103,553 3,179 Total .................................................................... / / ¥337,930 Millions of yen March 31 2010 Hedge accounting method Principal items hedged Contract amount Type of derivative Total Over 1 year Fair value Deferral hedge method Currency swaps. ................................................... Foreign currency denomi- nated loans and bills  discounted; other securities  (bonds); deposits; foreign  currency exchange, etc. ¥2,058,317 ¥1,849,783 ¥163,796 Forward foreign exchange .................................... 10,152 — 111 Recognition of gain or loss  on the hedging instrument Currency swaps. ................................................... Deposits 19,785 — (301) Allocation method Currency swaps. ................................................... Deposits; borrowed money 7,866 6,635 (Note 3) Forward foreign exchange .................................... 124,361 — Total .................................................................... / / ¥163,607 Millions of U.S. dollars March 31 2011 Hedge accounting method Principal items hedged Contract amount Type of derivative Total Over 1 year Fair value Deferral hedge method Currency swaps. ................................................... Foreign currency denomi- nated loans and bills  discounted; other securities  (bonds); deposits; foreign  currency exchange, etc. $33,389 $22,639 $4,069  Forward foreign exchange .................................... 116 — (2) Recognition of gain or loss  on the hedging instrument Currency swaps. ................................................... Deposits 145 134 (3) Allocation method Currency swaps. ................................................... Deposits; borrowed money 141 137 (Note 3) Forward foreign exchange .................................... 1,245 38 Total .................................................................... / / $4,064 (b) Currency derivatives SMFG  2011 120