Square Enix 2007 Annual Report Download - page 43

Download and view the complete annual report

Please find page 43 of the 2007 Square Enix annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 56

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56

41
4. Assumptions used in accounting for retirement benefit
obligation:
Periodic allocation method for projected benefits Straight-line basis
Discount rates 1.700%–1.837%
Expected rate of return on plan assets 1.700%
Period over which prior service cost is amortized 1–5 years
Period over which net actuarial gain or loss
is amortized 1–5 years
• FY2006 (April 1, 2006 to March 31, 2007)
1. Overview of retirement benefit plan
The Company and its domestic consolidated subsidiaries
have a lump-sum retirement payment plan with regard in
accordance with their internal bylaws.
The projected benefits are allocated to periods of service
on a straight-line basis. The Company’s domestic consoli-
dated subsidiaries apply a simplified method in the
calculation of the retirement benefit obligations. In addi-
tion, certain of the Company’s overseas subsidiaries main-
tain defined contribution retirement pension plans.
2. Retirement benefit obligation:
Millions of yen
Retirement benefit obligation ¥(10,612)
Fair value of plan assets 9,871
Net unfunded obligation (741)
Unrecognized prior service cost (1,138)
Unrecognized actuarial loss (289)
Allowance for retirement benefits ¥ (2,169)
3. Retirement benefit expenses:
Millions of yen
Service cost ¥600
Interest cost 172
Expected return on plan assets (170)
Amortization of prior service cost (406)
Amortization of net actuarial loss 190
Retirement benefit expenses ¥386
Note: Due to the restructuring of certain businesses, such as
the amusement business, during the year, a substantial
number of employees retired, and the Company recog-
nized a curtailment of its retirement benefit plan in
accordance with “Accounting for Transfers between
Retirement Benefit Schemes” (Application Guideline
No. 1 of the Business Accounting Principles). As a result,
the Company recognized a partial reversal of allowance
for retirement benefits and a lump-sum amortization
of unrecognized gain/loss amounting to ¥465 million
as an extraordinary gain, which was included in the
amortization of prior service cost and amortization of net
actuarial gains and losses during the year.
In addition to the above, the Company recorded an
extraordinary loss for premium severance payments
of ¥925 million.
4. Assumption used in accounting for retirement benefit
obligation:
Periodic allocation method for projected benefits Straight-line basis
Discount rates 1.700%–2.093%
Expected rate of return on plan assets 1.700%
Period over which prior service cost is amortized 1–5 years
Period over which net actuarial gain or loss
is amortized 1–5 years
15-52_07ｽｸｴﾆ欧文 07.8.31 14:29 ページ41