Square Enix 2008 Annual Report Download - page 30

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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
• 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 scope of consolida-
tion of SQUARE ENIX CO., LTD. (the “Company”) 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 certain of the 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 (BEIJING) CO.,
LTD. is currently undergoing liquidation procedures.
(2) Non-consolidated subsidiaries:
SOLID CO., LTD.
SG Lab Inc.
Stylewalker, Inc.
PlayOnline, Inc.
ZERO RESEARCH LTD. was liquidated during the fiscal year ended March
31, 2007. The Company established SG Lab Inc., Stylewalker, Inc., and
PlayOnline Co., Ltd. during the fiscal year ended March 31, 2007.
(Rationale for the exclusion of subsidiaries from the scope of consolidation)
Non-consolidated subsidiaries conduct operations that are relatively
small in scale. The total amounts of the non-consolidated subsidiaries’
assets, sales, equity in net income (loss), and equity in retained earn-
ings (deficit) are deemed to have an immaterial effect on the Company’s
financial performance and consolidated financial statements.
• FY2007 (April 1, 2007 to March 31, 2008)
(1) Number of consolidated subsidiaries:
17 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.
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.
SG Lab Inc.
SG Lab Inc. has been included in the Company’s scope of consolidation
effective this fiscal year, owing to its increase in materiality.
COMMUNITY ENGINE NETWORK SOFTWARE (BEIJING) CO., LTD.,
was liquidated in this fiscal year.
UIEVOLUTION, INC. and UIE JAPAN CO., LTD. were excluded from
the Company’s scope of consolidation in this fiscal year, owing to the
transfer of all shares held in these companies to another party.
SQUARE ENIX WEBSTAR NETWORK TECHNOLOGY (BEIJING) CO., LTD.
is currently undergoing liquidation procedures.
(2) Non-consolidated subsidiaries:
SOLID CO., LTD.
PlayOnline, Inc.
SQUARE ENIX MOBILE STUDIO CO., LTD.
SMILE-LAB Co., Ltd.
SQUARE ENIX MOBILE STUDIO CO., LTD. and SMILE-LAB Co., Ltd.
were established in this fiscal year.
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