SoftBank Group Corp. – Annual report – 31 March 2026
Industry: telecoms, software
31. Transfers of financial assets (extract)
The Company enters into securitization transactions involving trade receivables, installment receivables and other assets, and transfers securities in connection with repurchase transactions.
The major securitization transactions involve the securitization of receivables related to installment receivables recognized from the sales of mobile devices.
For the transactions, the Company transfers receivables to financial institutions and acquires cash and subordinate interest in the transferred receivables for financing purposes. The receivables sold are not derecognized because the Company retains a subordinate interest in each transaction and substantially retains all the risks and rewards of ownership of the transferred assets. Cash received from transferring the receivables are included in “Interest-bearing debt” under current liabilities and non-current liabilities as borrowings in the consolidated statement of financial position.
In repurchase transactions, the Company transfers held-to-maturity bonds included in “Other financial assets (current)” and “Investment securities” in the consolidated statement of financial position to money market brokers. In these transactions, the Company enters into agreements to repurchase the bonds at a fixed price in the future concurrently with the transfer of the bonds, and therefore the Company continues to bear the risk of changes in the prices of the transferred bonds. Accordingly, as the Company retains substantially all of the risks and rewards of ownership of the transferred assets, the Company does not derecognize those assets. The proceeds received from the transfer are recognized as borrowings and presented as “Interest-bearing debt (current)” in the consolidated statement of financial position.
The following table presents the carrying amount of financial assets and related liabilities that are transferred but do not meet the derecognition criteria, as well as the fair value where related liabilities have recourse only to the transferred assets:
The difference between transferred assets and related liabilities is mainly the subordinated interests which the Company retains on securitization.
