Square Enix 2004 Annual Report Download - page 28

26 SQUARE ENIX 2004
ENIX
(a) Investments securities
Held-to-maturity securities:
Amortized cost method, amortized on a straight-line basis
Other investments securities, securities for which fair values are avail-
able:
Market value, determined by the quoted market price as of the balance
sheet date, with unrealized gains and losses reported as a separate com-
ponent of shareholders’ equity at a net-of-tax amount, and the cost of
sales determined by the moving-average method
Other investments securities, securities for which fair values are unavail-
able:
Stated at cost, determined by the moving-average method
(b) Inventories
Manufactured goods:
Stated at cost, determined by the monthly average method
Merchandise:
Stated at cost, determined by the monthly average method
Unfinished goods:
Stated at cost determined by the monthly average method
Supplies:
Stated at the last purchase price
SQUARE
(a) Investments securities
Held-to-maturity securities:
—
Other investment securities, securities for which fair values are avail-
able:
Market value, determined by the quoted market price as of the balance
sheet date, with unrealized gains and losses reported as a separate com-
ponent of shareholders’ equity at a net-of-tax amount, and the cost of
sales determined by the average method
Other investments securities, securities for which fair values are unavail-
able:
Stated at cost determined by the average method
(b) Inventories
Manufactured goods:
Stated at the lower of cost or market, determined by the moving-aver-
age method
Merchandise:
Stated at the lower of cost or market, determined by the moving-aver-
age method. Merchandise held by SQUARE SOFT, INC. and
SQUARE ELECTRONIC ARTS L.L.C. are stated at the lower of cost
or market determined by the first-in first-out method
Content production account:
Stated at cost
Supplies:
Principally stated at cost, determined by the moving-average method
Fiscal year under review (April 1, 2003 to March 31, 2004)
The Company
(a) Investments securities
Held-to-maturity securities:
Amortized cost method, amortized on a straight-line basis
Other investment securities, securities for which fair values are avail-
able:
Market value, determined by the quoted market price as of the balance
sheet date, with unrealized gains and losses reported as a separate com-
ponent of shareholders’ equity at a net-of-tax amount, and the cost of
sales determined by the moving-average method
Other investment securities, securities for which fair value are unavail-
able:
Stated at cost determined by the average method
(b) Inventories
Manufactured goods, merchandise:
Stated at cost, determined by the monthly average method
Content production account:
Stated at cost, determined by the identified cost method
Supplies:
Stated at the last purchase price
(2) Method for depreciation and amortizion of major assets
Previous fiscal year (April 1, 2002 to March 31, 2003)
ENIX
(a) Property, plant and equipment
Property, plant and equipment are depreciated using the declining-balance
method. Assets with a purchase price equal to or more than ¥100,000 and
less than ¥200,000 are depreciated on a straight-line basis over a period of
three years. Estimated useful lives of major assets is as follows:
Buildings 50 years
Machinery and equipment 4-6 years
(b) Intangible assets
In-house software is amortized by the straight-line method based on an
estimated useful life of five years.
SQUARE
(a) Property, plant and equipment
Property, plant and equipment are depreciated using the declining-bal-
ance method. Estimated useful lives of major assets is as follows:
Buildings and structures 3-18 years
Machinery and equipment 3-20 years
(b) Intangible assets
In-house software used by SQUARE and its domestic consolidated sub-
sidiaries is amortized by the straight-line method based on an estimated