Nintendo 2009 Annual Report Download - page 32

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28
B. Securities and Derivatives
Securities
Held-to-maturity debt securities are stated using amortized cost method on a straight-line basis.
Other investment securities for which market quotations are available are stated at fair value at the balance sheet date.
Unrealized gains on other investment securities are recorded as “Valuation difference on available-for-sale securities” in “Net
assets” at the net-of-tax amount, while unrealized losses on other investment securities are included in “Loss on valuation of
investment securities” in “Extraordinary loss.” The cost of investment securities sold is determined based on the moving average
cost.
Other investment securities for which market quotations are unavailable are stated at cost, determined by the moving average
method.
Derivatives
Derivatives are stated at fair value.
C. Inventories
Finished goods, work in process and raw materials and supplies are mainly measured by means of the cost method based on the
moving average method, which evaluates the amount of the inventories shown on the balance sheet by the write-down of
inventories due to decreased profitability of assets for the year ended March 31, 2009.
Inventories are stated at the lower of cost, determined by the moving average method, or market for the year ended March 31,
2008.
D. Property, Plant and Equipment
The Company and its domestic consolidated subsidiaries compute depreciation by the declining balance method over the
estimated useful lives except for certain tools, furniture and fixtures depreciated over the economic useful lives. The straight-line
basis of depreciation is used for buildings, except for structures, acquired on or after April 1, 1998. Overseas consolidated
subsidiaries compute depreciation by applying the straight-line basis over the period of estimated useful lives. Estimated useful
lives of “Buildings and structures,” one of the principal assets, are 3 to 60 years.
Leased assets are excluded from property, plant and equipment for the year ended March 31, 2009.
E. Intangible Assets
Amortization of intangible fixed assets, except for computer software for internal use, is computed by the straight-line basis over
the estimated useful lives. Amortization of computer software for internal use is computed by the straight-line basis over the
estimated internal useful lives of mainly five years.
Leased assets are excluded from intangible assets for the year ended March 31, 2009.
F. Leased Assets
Leased assets related to finance lease transactions that do not transfer ownership are depreciated on a straight-line basis, with
the lease periods used as their useful lives and no residual value for the year ended March 31, 2009.
G. Allowance for Doubtful Accounts
The Company and its domestic consolidated subsidiaries provide the allowance for doubtful accounts based on the historical
analysis of loss experience and the evaluation of uncollectible amount on individual doubtful accounts. Overseas consolidated
subsidiaries provide the allowance for doubtful accounts based on the evaluation of uncollectible amount on individual accounts.
Years ended March 31, 2009 and 2008
Notes to Consolidated Financial Statements