REGULATIONS CONCERNING TERMINOLOGY, FORMS AND METHODS OF PREPARATION OF FINANCIAL STATEMENTS, ETC. Copyright Roderick Seeman

ARTICLE 8-8. NOTATIONS CONCERNING DERIVATIVE TRANSACTIONS

1. Concerning derivative transactions, corresponding to the classifications in the items hereunder, notations must be made of the items set out in each of the said items.

i. Matters concerning the conditions of the transaction, the substance of the transaction, plans for combination in relation to the transaction, the objectives of the usage of the transaction, the substance of the risk related to the transaction, the control structure for the risks related to the transaction, and a supplemental explanation for the matters set out in following Item.

ii. Matters concerning the market price of the transaction, the contractual amount in the balance sheet for each of the types of objects that are the object of the transaction (currencies, interest, shares, bonds, commodities, etc), or the amount of the principal as set out in the contract, market price and the amount of evaluation gain or loss and the basis of calculation of such market price.

2. Matters set out in Item ii of the previous Paragraph, shall have notations showing clearly the conditions of the derivative transactions by making such classifications as the type of transaction (futures transaction, options transactions, futures swaps transactions, swaps transactions, etc), market and non-market transactions, buy denoted contracts and sell denoted contracts, transaction settlement date from the balance sheet date or the term from the end of the contract.