Square Enix 2007 Annual Report Download - page 34

32
F) Allowance for directors’ retirement benefits
An allowance for directors’ retirement benefits is provided
to adequately cover the costs of directors’ retirement
benefits, which are accounted for on an accrual basis in
accordance with internal policy.
• FY2006 (April 1, 2006 to March 31, 2007)
A) Allowance for doubtful accounts
Same as in FY2005
B) Reserve for bonuses
Same as in FY2005
C) Allowance for sales returns
Same as in FY2005
D) Allowance for store closings
Same as in FY2005
E) Allowance for retirement benefits
Same as in FY2005
F) Allowance for directors’ retirement benefits
Same as in FY2005
(4) Translation of foreign currency transactions and accounts:
• FY2005 (April 1, 2005 to March 31, 2006)
All monetary assets and liabilities of the Company and its domestic
consolidated subsidiaries denominated in foreign currencies are
translated at the balance sheet date at the year-end rates. The
resulting translation gains or losses are charged or credited to
income. All monetary assets and liabilities of overseas consoli-
dated subsidiaries are translated as of the balance sheet date at
the year-end rates, and all income and expense accounts are
translated at rates for their respective periods. The resulting
translation adjustments are recorded in minority interests in
consolidated subsidiaries and shareholders’ equity as “Foreign
currency translation adjustments.”
• FY2006 (April 1, 2006 to March 31, 2007)
All monetary assets and liabilities of the Company and its domestic
consolidated subsidiaries denominated in foreign currencies are
translated at the balance sheet date at the year-end rates. The
resulting translation gains or losses are charged or credited to
income. All monetary assets and liabilities of overseas consolidated
subsidiaries are translated as of the balance sheet date at the year-
end rates, and all income and expense accounts are translated at
rates for their respective periods. The resulting translation adjust-
ments are recorded in net assets as “Foreign currency translation
adjustments” and are included in minority interests in consoli-
dated subsidiaries.
(5) Accounting for leases:
• FY2005 (April 1, 2005 to March 31, 2006)
Finance leases, other than those for which the ownership of
the leased assets are considered to be transferred to the
lessees, are accounted for as operating leases.
• FY2006 (April 1, 2006 to March 31, 2007)
Same as in FY2005
(6) Accounting for deferred assets:
• FY2005 (April 1, 2005 to March 31, 2006)
A) Stock issuance expenses
Costs associated with issuances of shares of common stock
are expensed as incurred.
B) Corporate bond issuance expenses
Costs associated with issuances of shares of common stock
are expensed as incurred.
• FY2006 (April 1, 2006 to March 31, 2007)
A) Share delivery expenses
Costs associated with issuances of shares of common stock
are expensed as incurred.
B) Corporate bond issuance expenses
Not applicable
(7) Additional accounting policies used to prepare consolidated
financial statements:
• FY2005 (April 1, 2005 to March 31, 2006)
A) Accounting treatment of consumption taxes
Income statement items are presented exclusive of
consumption taxes.
B) Accounting treatment of overseas subsidiaries
The accounts and records of overseas subsidiaries are
maintained in conformity with accounting principles and
practices generally accepted in their respective countries.
• FY2006 (April 1, 2006 to March 31, 2007)
A) Accounting treatment of consumption taxes
Same as in FY2005
B) Accounting treatment of overseas consolidated subsidiaries
Same as in FY2005
5. Valuation of Assets and Liabilities of
Consolidated Subsidiaries
• FY2005 (April 1, 2005 to March 31, 2006)
All assets and liabilities of consolidated subsidiaries are revalued
on acquisition.
15-52_07ｽｸｴﾆ欧文 07.8.31 14:29 ページ32