Square Enix 2009 Annual Report Download - page 40

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6. Redemption schedule of other securities with maturities and
held-to-maturity securities
Not applicable
• Year ended March 31, 2009
1. Held-for-sale securities
Not applicable
2. Held-to-maturity securities with market value
Not applicable
3. Other investment securities with market value:
Millions of yen
Acquisition Book
Type cost value Difference
Securities with book
value exceeding (1) Stocks ¥ 0 ¥ 0 ¥ 0
acquisition cost Subtotal 0 0 0
Securities with
acquisition cost (1) Stocks 1,997 1,881 (115)
exceeding book value Subtotal 1,997 1,881 (115)
Total ¥1,998 ¥1,882 ¥(115)
Note: For the fiscal year ended March 31, 2009, the impairment loss associated
with the fair market value determination of other investment securities with
market value was ¥15 million. Impairment loss on securities is charged to
income when the market price at the end of the fiscal year falls less than
50% of the acquisition cost. In addition, impairment loss on securities is
charged to income when the market price at the end of the fiscal year falls
between 30% and 50% of the acquisition cost after considering factors such
as the significance of the amount and the likelihood of recovery.
4. Securities sold during the fiscal year ended March 31, 2009
Millions of yen
Amount of sale Gain on sale Loss on sale
¥4 ¥0 ¥17
5. Investment securities whose fair values are not readily
determinable:
Millions of yen
Book value
(1) Other investment securities
Unlisted securities (excluding OTC securities) ¥180
Unlisted overseas bonds 0
6. Redemption schedule of other securities with maturities and
held-to-maturity securities
Not applicable
Derivative Transactions
• Year ended March 31, 2008
1. Terms of transactions
(1) Types and purposes of transactions
In principle, the Company does not engage in derivative trans-
actions. However, from time to time, the Company enters into
forward foreign exchange contracts for the purpose of reducing
the risk of exposure to foreign exchange rate fluctuations.
(2) Transaction policy
The Company enters into forward foreign exchange contracts to
cover anticipated transactions denominated in foreign currencies
but does not enter into such contracts for speculative purposes.
(3) Risks
Forward foreign exchange contracts are subject to market risk
arising from fluctuations in foreign exchange rates. The Company
deems the risk of nonperformance by the counterparties to
forward foreign exchange contracts to be low because the
Company only enters into such contracts with financial
institutions that have high credit ratings.
(4) Risk management
Contracts are approved by a representative director and the
director with responsibility for this area. The Accounting and
Finance Division administers risk management.
2. Market valuation of transactions
Not applicable
• Year ended March 31, 2009
Same as the year ended March 31, 2008
Retirement Benefits
• Year ended March 31, 2008
1. Overview of retirement benefit plan
The Company and its domestic consolidated subsidiaries have a
lump-sum retirement payment plan in accordance with their
internal bylaws.
The projected benefits are allocated to periods of service on
a straight-line basis. The Company’s domestic consolidated
subsidiaries apply a simplified method in the calculation of the
retirement benefit obligations. In addition, certain of the
Company’s overseas subsidiaries maintain defined contribution
retirement pension plans.
Notes to Consolidated Financial Statements (JPNGAAP)
38