Square Enix 2006 Annual Report Download - page 39

3 6 3 7
A n n u a l R e p o r t 2 0 0 6
2. Retirement benefit obligation:
Millions of yen
Retirement benefit obligation ¥11,249
Fair value of plan assets 10,622
Net unfunded obligation 627
Unrecognized prior service cost 1,895
Unrecognized actuarial loss 479
Allowance for retirement benefits ¥03,001
3. Retirement benefit expenses:
Millions of yen
Service cost ¥(378
Interest cost 129
Expected return on plan assets (89)
Amortization of prior service cost (356)
Amortization of net actuarial gains and losses (103)
Retirement benefit expenses ¥0(40)
4. Assumption used in accounting for retirement benefit
obligation:
Periodic allocation method for projected benefits Straight-line basis
Discount rate 1.700% –1.837%
Expected rate of return on plan assets 1.700%
Years over which prior service costs are amortized 1–5 years
Years over which net actuarial gains and losses
are amortized 1–5 years
T a x Ef f e c t A c c o u n t in g
• FY2004 (April 1, 2004 to March 31, 2005)
1. Significant components of deferred tax assets and liabilities
are summarized as follows:
Millions of yen
Deferred tax assets
1) Current assets
Enterprise tax payable ¥0,809
Office tax payable 19
Accrues bonuses, allowance for bonuses
to employees 415
Advances paid 310
Accrued expenses 346
Allowance for sales return 442
Non-deductible portion of allowance for
doubtful accounts 162
Tax credits 80
Non-deductible portion of allowance for content
production account (190)
Evaluation loss on content 1,140
Other (97)
Total 3,440
2) Non-current assets
Non-deductible portion of allowance for
retirement benefits 477
Allowance for directors’ retirement benefits 31
Non-deductible depreciation expense of property
and equipment 562
Tax effect on deficit of subsidiaries 690
Loss on investments in securities 242
Other 87
Offset to deferred tax assets (non-current assets) (324)
Total 1,768
Net deferred tax assets 5,209
Deferred tax liabilities
Non-current liabilities
Net unrealized gains on other investment securities (324)
Offset to deferred tax assets (non-current assets) 324
Total deferred tax liabilities —
Balance: Net deferred tax assets (liabilities) ¥5,209
2. Reconciliation of the statutory tax rate and the effective tax
rate:
Statutory tax rate 40.70%
Permanent differences excluded from
non-taxable expenses 0.17
Permanent differences excluded from
gross revenue (0.01)
Taxation on per capita basis for residents tax 0.04
Special income tax credits (0.56)
Amortization on consolidation adjustment account 2.43
Difference in tax rate with the parent company (1.17)
Other (0.49)
Effective tax rate 41.11%
• FY2005 (April 1, 2005 to March 31, 2006)
1. Significant components of deferred tax assets and liabilities
are summarized as follows:
Millions of yen
Deferred tax assets
1) Current assets
Enterprise tax payable ¥o,o37
Office tax payable 20
Accrued bonuses, allowance for bonuses
to employees 708
Advances paid 128
Accrued expenses 180
Allowance for sales return 358
Non-deductible portion of allowance for
doubtful accounts 169
Non-deductible portion of allowance for content
production account (194)
Evaluation loss on content 835
Loss carried forward 4,665
Non-deductible valuation gain on allowance
for retirement benefits 1,060
Non-deductible amortization of goodwill 191
Other (285)
Total 7,877