Square Enix 2006 Annual Report Download - page 30

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S Q U A R E E N IX C O . , L T D .
N o t e s t o C o n s o lid a t e d F in a n c ia l S t a t e m e n t s
(J P N G A A P )
SQUARE ENIX CO., LTD. and Consolidated Subsidiaries
S u m m a r y o f S ig n if ic a n t A c c o u n t in g
P o lic ie s U s e d in t h e P r e p a r a t io n o f
C o n s o lid a t e d F in a n c ia l S t a t e m e n t s
1 . S c o p e o f C o n s o lid a t io n
• FY2004 (April 1, 2004 to March 31, 2005)
(1) Number of consolidated subsidiaries:
11 and one partnership
DIGITAL ENTERTAINMENT ACADEMY CO., LTD.
COMMUNITY ENGINE INC.
THE GAME DESIGNERS STUDIO, INC.
SQUARE ENIX, INC.
SQUARE L.L.C.
SQUARE PICTURES, INC.
SQUARE ENIX LTD.
SQUARE ENIX (China) CO., LTD.
SQUARE ENIX WEBSTAR NETWORK TECHNOLOGY
(BEIJING) CO., LTD.
COMMUNITY ENGINE NETWORK SOFTWARE
(BEIJING) CO., LTD.
UIEVOLUTION, INC.
FF·FILM·PARTNERS (partnership)
SQUARE ENIX (China) CO., LTD., was established in January
2005 and has been included in the Company’s scope of
consolidation from this fiscal year.
(2) Non-consolidated subsidiaries:
BMF CORPORATION
SOLID CO., LTD.
SPORTS BB CORPORATION was liquidated during this fiscal year.
(Rationale for the exclusion of subsidiary companies from the
scope of consolidation)
Non-consolidated subsidiaries conduct operations that are relatively
small in scale. The total of non-consolidated subsidiaries’ assets,
sales, equity in net income (loss), and equity in retained earnings
(deficit) are deemed to have an immaterial effect on the Company’s
financial performance and consolidated financial statements.
• FY2005 (April 1, 2005 to March 31, 2006)
(1) Number of consolidated subsidiaries:
17 and one partnership
DIGITAL ENTERTAINMENT ACADEMY CO., LTD.
COMMUNITY ENGINE INC.
TAITO CORPORATION
SQUARE ENIX, INC.
SQUARE L.L.C.
SQUARE PICTURES, INC.
SQUARE ENIX LTD.
SQUARE ENIX (China) CO., LTD.
SQUARE ENIX WEBSTAR NETWORK TECHNOLOGY
(BEIJING) CO., LTD.
COMMUNITY ENGINE NETWORK SOFTWARE
(BEIJING) CO., LTD.
UIEVOLUTION, INC.
FF·FILM·PARTNERS (partnership)
HUANG LONG CO., LTD.
BEIJING TAIXIN CULTURAL AMUSEMENT CO., LTD.
TAITO KOREA CORPORATION
TAITO ART CORPORATION
EFFORT CO., LTD.
TAITO TECH CO., LTD.
HUANG LONG CO., LTD. was established in August 2005 and
has been included in the Company’s scope of consolidation
from this fiscal year.
In this fiscal year, THE GAME DESIGNERS STUDIO, INC.,
changed its name to SQEX, INC. Subsequently, on March 31,
2006, SQEX merged with TAITO CORPORATION concurrent
with the latter company’s acquisition by the Company and on
the same day changed its name to TAITO CORPORATION.
Also in this fiscal year, the Company’s consolidated financial
statements have been prepared on the basis of the Company’s
assumption of a controlling interest in TAITO CORPORATION,
BEIJING TAIXIN CULTURAL AMUSEMENT CO., LTD., TAITO
KOREA CORPORATION, TAITO ART CORPORATION, EFFORT CO.,
LTD. and TAITO TECH CO., LTD., as of September 30, 2005.
SQUARE ENIX WEBSTAR NETWORK TECHNOLOGY (BEIJING)
CO., LTD., is currently undergoing liquidation procedures.
(2) Non-consolidated subsidiaries:
SOLID CO., LTD.
UIE JAPAN CO., LTD.
ZERO RESEARCH LTD.
UIE JAPAN CO., LTD., and ZERO RESEARCH LTD., were established
in this fiscal year.
(Rationale for the exclusion of subsidiary companies from the
scope of consolidation)
Same as FY2004
2 . A p p lic a t io n o f t h e E q u it y M e t h o d o f
A c c o u n t in g
• FY2004 (April 1, 2004 to March 31, 2005)
Number of equity-method non-consolidated subsidiaries and
affiliates: 0
Principal non-consolidated subsidiaries not accounted for under
the equity method (BMF CORPORATION, SOLID CO., LTD., SQUARE
U.S.A., INC.) and an affiliated company (KUSANAGI INC.) are