Investments in securities. The Bank's investments in securities are classified in two categories and accounted for as follows:
Investments in securities or other assets of trade creditors or customers in the ordinary course of business received in settlement of bona fide disputes or upon foreclosure or pursuant to any plan of reorganization or liquidation or similar arrangement upon the bankruptcy or insolvency of such trade creditors or customers;
Investments in securities. Through March 31, 2000, securities listed on stock exchanges were principally stated at the lower of cost or market, cost being determined by the moving average method, except for securities held by certain consolidated subsidiaries and cer- tain securities other than listed securities which were valued at cost. Effective April 1, 2000, the Group has adopted “ Accounting Standard for Financial Instruments” issued by the Business Accounting Deliberation Council of Japan. The new standard requires that securities be classified into three cat- egories: trading securities, held-to-maturity debt securities and other securities. Under the new standard, trading securities, consisting of debt and marketable equity securities, are stated at fair value. Xxxx and loss, both realized and unrealized, are charged to income. Held-to-maturity debt securities are stated at their amortized cost. Marketable securities classified as other securities are carried at fair value with changes in unreal- ized holding gain or loss, net of the applicable income taxes, reported as a separate component of stockholders’ equity. Non-marketable securities classified as other securities are carried at cost determined by the moving average method. As of April 1, 2000, the Group assessed their intent to hold their securities included in short-term investments and investments in securities, classified their securities as “ other securities” and accounted for these securities at March 31, 2001 in accordance with the new standard referred to above. As a result, short-term investments increased by¥945 mil- lion ($7,621 thousand) and investments in securities and other assets decreased by ¥30 million ($242 thousand) and ¥915 million ($7,379 thousand), respectively.
