Square Enix 2010 Annual Report Download - page 36

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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, 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 ENIX 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, conse-
quently, 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)
Non-consolidated subsidiaries conduct operations that are relatively
small in scale. The total amounts of the non-consolidated sub-
sidiaries’ 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, 2010
(1) Number of consolidated subsidiaries:
46 and one partnership
Names of principal consolidated subsidiaries:
SQUARE ENIX OF AMERICA HOLDINGS, INC.
SQUARE ENIX OF EUROPE HOLDINGS LTD.
SQUARE ENIX CO., LTD.
TAITO CORPORATION
SMILE-LAB Co., Ltd.
SQUARE ENIX, INC.
SQUARE ENIX LTD.
SQUARE ENIX (China) Co., LTD.
CRYSTAL DYNAMICS INC.
EIDOS INTERACTIVE CORP.
IO INTERACTIVE A/S
Smile-Lab Co., Ltd., has been included in the scope of consolidation
of the Company, effective this fiscal year, owing to its increase in
materiality.
DIGITAL ENTERTAINMENT ACADEMY CO., LTD., has been
excluded from the scope of consolidation of the Company, effective
from the first quarter of this fiscal year, owing to its decrease
in materiality. In the fourth quarter of this fiscal year, DIGITAL
ENTERTAINMENT ACADEMY CO., LTD., completed liquidation
procedures.
At the end of the third quarter of this fiscal year, SG Lab INC.
completed liquidation procedures, and, consequently, was excluded
from the Company’s scope of consolidation.
On February 1, 2010, TAITO CORPORATION transferred all its
businesses relating to the operation of game arcade facilities; and
the planning, development, production, sales and rental of coin-operated
game machines (excluding the planning, development and sale of
game software for home-use game consoles); to ES1 CORPORATION,
a consolidated subsidiary of the Company whose shares were
acquired by the Company during this fiscal year. Simultaneously,
TAITO CORPORATION changed its corporate name to TAITO SOFT
CORPORATION. On March 11, 2010, TAITO SOFT CORPORATION
was subject to an absorption-type company merger with SQUARE
ENIX CO., LTD.
On February 1, 2010, ES1 CORPORATION changed its corporate
name to TAITO CORPORATION.
In this fiscal year, SQEX LTD. changed its corporate name to
SQUARE ENIX OF EUROPE HOLDINGS LTD.
(2) Names of principal non-consolidated subsidiaries:
SQUARE ENIX MOBILE STUDIO CO., LTD.
(Rationale for the exclusion of subsidiaries from the scope of consolidation)
Same as the year ended March 31, 2009
Notes to Consolidated Financial Statements (JPNGAAP)
SQUARE ENIX HOLDINGS CO., LTD. and Consolidated Subsidiaries
34