Square Enix 2008 Annual Report Download - page 34

5. Valuation of Assets and Liabilities of Consolidated
Subsidiaries
• FY2006 (April 1, 2006 to March 31, 2007)
All assets and liabilities of consolidated subsidiaries are revalued on
acquisition.
• FY2007 (April 1, 2007 to March 31, 2008)
Same as in FY2006
6. Amortization of goodwill
• 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 fiscal year in which
it was incurred.
• FY2007 (April 1, 2007 to March 31, 2008)
Same as in FY2006
7. Scope of Cash and Cash Equivalents in the Consolidated
Statements of Cash Flows
• FY2006 (April 1, 2006 to March 31, 2007)
Cash and cash equivalents in the consolidated statements of cash
flows are comprised of cash on hand, bank deposits which are able
to be withdrawn on demand and highly liquid short-term invest-
ments with an original maturity of three months or less and with
minor risk of significant fluctuations in value.
• FY2007 (April 1, 2007 to March 31, 2008)
Same as in FY2006
New Accounting Standards
• 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) were
adopted effective the fiscal year ended March 31, 2007. The amount
corresponding to total shareholders’ equity under the previous
method of presentation was ¥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
adopted “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 “Implementation
Guidance on Accounting Standard for Business Combinations and
Accounting Standard for Business Divestitures” (Accounting
Standards Board of Japan Guidance No. 10, December 27, 2005).
• FY2007 (April 1, 2007 to March 31, 2008)
Not applicable
Reclassifications
• FY2006 (April 1, 2006 to March 31, 2007)
(Consolidated Balance Sheets)
In accordance with revisions made in the regulations for the consoli-
dated balance sheet, the consolidation adjustment account and the
“goodwill” portion of the “other” item within intangible assets at
March 31, 2006 were reclassified into “goodwill” effective the fiscal
year ended March 31, 2007. In the consolidated balance sheet at
March 31, 2006, the “goodwill” portion of the “other” item within
intangible fixed assets amounted to ¥218 million.
(Consolidated Statements of Cash Flows)
Within cash flows from operating activities, for the fiscal year ended
March 31, 2006, foreign exchange gains and losses were recorded
in the “other” category of cash flows from operating activities. This
has been listed as a separate accounting category effective the
fiscal year ended March 31, 2007.
The amount within the “other” category corresponding to foreign
exchange gains and losses for the fiscal year ended March 31,
2006 was ¥(223) million.
For the fiscal year ended March 31, 2006, goodwill amortiza-
tion was included within the “other” segment in cash flows from
operating activities. This has been listed as a separate accounting
category effective the fiscal year ended March 31, 2007.
Amortization of the consolidated adjustment account, included
in the “other” category for the fiscal year ended March 31, 2006,
was ¥1,445 million.
• FY2007 (April 1, 2007 to March 31, 2008)
Not applicable
Notes to Consolidated Balance Sheets
• FY2006 (April 1, 2006 to March 31, 2007)
*1 Investments in non-consolidated subsidiaries and affiliates:
Investments and other assets ¥119 million
*2 Contingent liabilities for guarantees:
The Company’s consolidated subsidiary, TAITO CORPORATION,
has issued a guarantee of ¥12 million covering its lease obligations
to Diamond Asset Finance Co., Ltd., one of the Company’s sales
partners.
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