Square Enix 2007 Annual Report Download - page 35

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• FY2006 (April 1, 2006 to March 31, 2007)
Same as in FY2005
6. Amortization of Cost of Investments in
Subsidiaries in Excess of Net Assets Acquired
• FY2005 (April 1, 2005 to March 31, 2006)
Cost of investments in subsidiaries in excess of net assets
acquired is amortized over a period of 5-20 years on a
straight-line basis.
• FY2006 (April 1, 2006 to March 31, 2007)
Not applicable
7.Amortization of goodwill
• FY2005 (April 1, 2005 to March 31, 2006)
Not applicable
• FY2006 (April 1, 2006 to March 31, 2007)
Goodwill is amortized using the straight-line method over a
period of either five years or 20 years. However, goodwill
whose value has been extinguished is fully amortized during
the consolidated fiscal year in which it was incurred.
8. Appropriation of Retained Earnings
• FY2005 (April 1, 2005 to March 31, 2006)
The consolidated statement of capital surplus and retained
earnings is prepared based on retained earnings (deficit) appro-
priations determined during the fiscal year.
• FY2006 (April 1, 2006 to March 31, 2007)
Not applicable
9. Scope of Cash and Cash Equivalents in the
Statements of Cash Flows
• FY2005 (April 1, 2005 to March 31, 2006)
Cash and cash equivalents in the consolidated statements of
cash flows is comprised of cash on hand, bank deposits which
are able to be withdrawn on demand and highly liquid short-
term investments with an original maturity of three months or
less and with minor risk of significant fluctuations in value.
• FY2006 (April 1, 2006 to March 31, 2007)
Same as in FY2005
New Accounting Standards
• FY2005 (April 1, 2005 to March 31, 2006)
(Accounting standard for impairment of non-current assets)
Effective this fiscal year, the Company has adopted an
accounting standard for the impairment of fixed assets
“Opinion Concerning Establishment of Accounting Standard
for the Impairment of Fixed Assets” [Business Accounting
Council, August 9, 2002]) and “Guidance on Accounting
Standard for Impairment of Fixed Assets ”(Accounting Standard
Implementation Guidance No. 6 [Accounting Standards Board
of Japan, October 31, 2003]). As a result, income before
income taxes decreased ¥4,426 million in this fiscal year from
the amount which would have been recorded under the
method applied in the previous year. The effect of the new
accounting standard on segment information has been
reflected wherever relevant. The cumulative amount of impair-
ment loss was deducted directly from the book value of each
asset in accordance with the amended consolidated accounting
policy.
• FY2006 (April 1, 2006 to March 31, 2007)
(Accounting Standard for Presentation of Net Assets in the
Balance Sheet)
“Accounting Standard for Presentation of Net Assets in the
Balance Sheet” (Accounting Standards Board of Japan
Statement No. 5, December 9, 2005) and “Guidance on
Accounting Standard for Presentation of Net Assets in the
Balance Sheet” (Accounting Standards Board of Japan
Guidance No. 8, December 9, 2005) was applied from the con-
solidated fiscal year ended March 31, 2007. The amount corre-
sponding to total shareholders’ equity under the previous
method of presentation is ¥129,461 million.
The net assets section of the consolidated balance sheet
was prepared in accordance with the revised “Regulations for
Consolidated Financial Statements”.
(Accounting Standards for Business Combinations)
Effective the fiscal year ended March 31, 2007, the Company
has adopted “Accounting Standard for Business
Combinations” (“Statement of Opinion on Implementing
Accounting Standard for Business Combinations,” (Business
Accounting Council, October 31, 2003), “Accounting Standard
for Business Divestitures” (Accounting Standards Board of
Japan Statement No. 7, December 27, 2005) and “Guidance
on Accounting Standard for Business Combinations and
Accounting Standard for Business Divestitures” (Accounting
Standards Board of Japan Guidance No. 10, December 27,
2005).
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