| Article 11 | The account structure of the income statement and the contents thereof are as follows:
- Revenues and expenses shall be classified by nature, with separate disclosure being made of the primary sources of operating revenues and primary operating expenses.
- Except with respect to the following, revenues and expenses shall not be offset against each other:
- Where assets and liabilities are allowed to be mutually offset under Statement of Financial Accounting Standards No. 27, the relevant revenues and expenses.
- Revenues and expenses related to hedging transactions.
- Gains and losses arising from the following shall be presented in net amount:
- Transactions in bills and bonds and relevant period-end valuations.
- Gain/loss on long-term equity investments.
- Revenues and gains:
- "Gains from trading bills and bonds" means gains arising from trading in various bills and bonds.
- "Service charge revenue" means service charge revenue arising from provision of guarantee, certification, undertaking, and brokerage services.
- "Interest revenue" means interest revenue arising from holding bonds, investing in bills and bonds under reverse repurchase agreements, and various deposits.
- "Gains on long-term equity investments" shall be calculated and presented in accordance with Statement of Financial Accounting Standards No. 5.
- "Other revenues and gains" means other operating revenues not falling within the above categories and non-operating revenues and gains not arising from operating activities.
- Expenses and losses:
- "Losses on trading bills and bonds" means losses arising from trading various short-term bills and bonds and unrealized losses as a result of valuation.
- "Various provisions" means various provisions set aside for allowance for bad debts, reserve for losses on guarantee obligations, and securities trading loss reserve.
- "Interest expenses" means various interest expenses incurred as a result of liabilities from bills and bonds under repurchase agreements, financing from banks, and borrowing of corporate bonds.
- Losses on long-term equity investments shall be calculated and presented in accordance with Statement of Financial Accounting Standards No. 5
- "Operating expenses" means all expenses necessary for the operation of the Bills Finance Company. Such expenses shall be separately recorded in detail according to actual needs. They are mainly classified as business expenses and administrative expenses.
- "Other expenses and losses" means other operating expenses not falling within the above categories and non-operating expenses and losses not arising from operating activities.
- "Income before tax" means the net result of the preceding two subparagraphs.
- "Income tax expenses (benefits)" means the sum of current and deferred income tax expenses.
- "Net income" means income before tax adjusted for income tax expenses (benefits).
- "Extraordinary gains and losses" means income items that are distinguished by their unusual nature and by the infrequency of their occurrence. Such items shall be presented separately and shall not be amortized on a yearly basis.
- "Cumulative effect of a change in accounting principle" shall be presented separately after extraordinary gains and losses.
- "Current net income" (or "current net loss"): earnings (or losses) for the current accounting period, which are the aggregate amount of the preceding three subparagraphs.
- "Earnings per share" shall be calculated and presented in accordance with Statement of Financial Accounting Standards No. 24.
- "Income tax" shall be amortized and presented in a manner consistent with the provisions of Statement of Financial Accounting Standards No. 22.
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