Square Enix 2004 Annual Report Download - page 39

SQUARE ENIX 2004 37
2. Retirement benefit obligation
Millions of Yen
As of March 31, 2003
A. Projected benefit obligation (100)
B. Fair value of plan assets —
C. Unfunded projected benefit obligation (A+B) (100)
D. Unrecognized transition amount —
E. Unrecognized actuarial difference —
F. Unrecognized prior service cost —
G. Net balance sheet amount (C+D+E+F) (100)
H. Prepaid pension cost —
I. Allowance for retirement benefits (G-H) (100)
3. Retirement benefit expenses
Millions of Yen
Year ended March 31, 2003
A. Service cost 23
B. Retirement benefit expenses 23
SQUARE
1. Overview of retirement benefit plan applied
SQUARE and its domestic consolidated subsidiaries applied a lump-sum
retirement payment plan with regard to its retirement benefit obligation.
Previously, SQUARE and its domestic consolidated subsidiaries applied a
lump-sum retirement payment plan and tax qualified pension plan. On
March 31, 2002, SQUARE and its domestic consolidated subsidiaries ter-
minated its tax qualified pension plan and pension trust agreement. In
addition, certain of SQUARE’s overseas subsidiaries maintain defined con-
tribution retirement pension plans.
2. Retirement benefit obligation
Millions of Yen
March 31, 2003
Retirement benefit obligation 301
Fair value of plan assets —
Unrecognized transition amount —
Allowance for retirement benefits 301
3. Retirement benefit expenses
Millions of Yen
Year ended March 31, 2003
Service cost 72
Amortization of transition amount —
Loss on termination —
Retirement benefit expenses 72
Fiscal year under review (April 1, 2003 to March 31, 2004)
The Company
1. Overview of retirement benefit plan applied
The Company and its domestic consolidated subsidiaries applied a lump-
sum retirement payment plan with regard to its retirement benefit obliga-
tion. The projected benefits are allocated to periods of service on a
straight-line basis. Its domestic consolidated subsidiaries apply the conven-
tional method in the calculation of retirement benefit obligations. In addi-
tion, certain of the Company’s overseas subsidiaries maintain defined con-
tribution retirement pension plans.
2. Retirement benefit obligation
Millions of Yen
March 31, 2004
Retirement benefit obligation 988
Unrecognized actuarial difference (10)
Allowance for retirement benefits 978
3. Retirement benefit expenses
Millions of Yen
Year ended March 31, 2004
Service cost 602
Interest cost 12
Retirement benefit expenses 615
Service cost includes a deficit of ¥388 million due to the change in calcula-
tion of retirement benefit obligation from the conventional method to the
basic method.
4. Assumptions used in accounting for retirement benefit obligation
Periodic allocation method for projected benefits Straight-line basis
Discount rate 1.611%
Years over which net actuarial gains and losses are amortized 1 year
Income Taxes
ENIX
1. Significant components of deferred tax assets and liabilities are as fol-
lows:
Millions of Yen
Deferred tax assets
①Current assets
Enterprise tax payable 279
Non-deductible portion of reserve for bonuses 27
Office tax payable 3
Product development costs 597
Non-deductible portion of allowance for
doubtful accounts 0
Accrued expenses 33
Total 941
②Non-current assets
Non-deductible portion of allowance for retirement
benefits 33
Allowance for directors’ retirement benefits 55
Non-deductible depreciation expense of property, plant
and equipment 0