Square Enix 2007 Annual Report Download - page 31

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29
Notes to Consolidated Financial Statements
(JPNGAAP)
SQUARE ENIX CO., LTD. and Consolidated Subsidiaries
Summary of Significant Accounting
Policies Used in the Preparation of
Consolidated Financial Statements
1. Scope of Consolidation
• 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
effective 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 subsidiaries from the scope of
consolidation)
Non-consolidated subsidiaries conduct operations that are rela-
tively small in scale. The total amounts of the 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.
• FY2006 (April 1, 2006 to March 31, 2007)
(1) Number of consolidated subsidiaries:
19 and one partnership
DIGITAL ENTERTAINMENT ACADEMY CO., LTD.
COMMUNITY ENGINE INC.
TAITO CORPORATION
SQUARE ENIX OF AMERICA HOLDINGS, 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)
HUANG LONG CO., LTD.
BEIJING TAIXIN CULTURAL AMUSEMENT CO., LTD.
TAITO KOREA CORPORATION
TAITO ART CORPORATION
EFFORT CO., LTD.
TAITO TECH CO., LTD.
UIE JAPAN CO., LTD.
UIE JAPAN CO., LTD., has been included in the Company’s
scope of consolidation effective this fiscal year, owing to its
increase in materiality.
In this fiscal year, the Company established SQUARE ENIX
OF AMERICA HOLDINGS, INC., in November 2006 as a holding
company to oversee the Company’s operations in North
America.
On December 6, 2006, through investment in kind of
shares amounting to US$19,100 thousand in Company’s sub-
sidiaries SQUARE ENIX, INC., and SQUARE PICTURES, INC.,
these companies became special-purpose subsidiaries under
Article 24, Paragraph 5, Item 4 of the Securities Exchange Law
and Cabinet Ordinance No. 19 Concerning the Disclosure of
Corporate Details.
SQUARE ENIX WEBSTAR NETWORK TECHNOLOGY (BEI-
JING) CO., LTD. is currently undergoing liquidation procedures.
15-52_07ｽｸｴﾆ欧文 07.8.31 14:29 ページ29