Square Enix 2009 Annual Report Download - page 30

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Summary of Significant Accounting Policies Used in
the Preparation of Consolidated Financial Statements
1. Scope of Consolidation
• Year ended 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 consoli-
dation 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.
(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
earnings (deficit) are deemed to have an immaterial effect on the
Company’s financial performance and consolidated financial
statements.
• Year ended March 31, 2009
(1) Number of consolidated subsidiaries:
16 and one partnership
SQUARE ENIX CO., LTD.
TAITO CORPORATION
DIGITAL ENTERTAINMENT ACADEMY CO., LTD.
COMMUNITY ENGINE INC.
SG Lab INC.
SQUARE ENIX OF AMERICA HOLDINGS, INC.
SQUARE ENIX, INC.
SQUARE L.L.C.
SQUARE PICTURES, INC.
SQUARE ENIX LTD.
SQEX LTD.
SQUARE ENIX (China) Co., LTD.
SQUARE ENIX WEBSTAR NETWORK TECHNOLOGY (BEIJING)
CO., LTD.
HUANG LONG CO., LTD.
BEIJING TAIXIN CULTURAL AMUSEMENT CO., LTD.
TAITO KOREA CORPORATION
FF FILM PARTNERS (partnership)
SQUARE ENIX WEBSTAR NETWORK TECHNOLOGY (BEIJING) CO.,
LTD. is currently undergoing liquidation procedures.
EFFORT CO., LTD., TAITO ART CORPORATION and TAITO TECH
CO., LTD. have completed liquidation procedures, and, consequently,
were excluded from the Company’s scope of consolidation.
On October 1, 2008, the Company shifted to a pure holding-
company structure through an incorporation-type company split.
As part of this split, a newly established wholly owned subsidiary
assumed Company’s operations for the following business
segments: Games (Offline), Games (Online), Mobile Phone Content,
Publication and Others. Accompanying this split, the Company’s
name was changed to SQUARE ENIX HOLDINGS CO., LTD., and,
on the same day, a new company, SQUARE ENIX CO., LTD. was
established as a consolidated subsidiary. In addition, SQEX LTD.
was newly established and included in the scope of consolidation.
(2) Non-consolidated subsidiaries:
SOLID CO., LTD.
PlayOnline, Inc.
SQUARE ENIX MOBILE STUDIO CO., LTD.
SMILE-LAB Co., Ltd.
Stylewalker, Inc.
(Rationale for the exclusion of subsidiaries from the scope of consolidation)
Same as the year ended March 31, 2008
N o t e s t o C o n s o l i d a t e d F i n a n c i a l S t a t e m e n t s ( J P N G A A P )
SQUARE ENIX HOLDINGS CO., LTD. and Consolidated Subsidiaries
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