Square Enix 2011 Annual Report Download - page 38

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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, 2010
(1) Number of consolidated subsidiaries:
46 and one voluntary 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)
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, 2011
(1) Number of consolidated subsidiaries:
34 companies and one voluntary 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
During the fiscal year ended March 31, 2011, COMMUNITY ENGINE
INC. and 10 other companies were liquidated or in the process of being
liquidated and were excluded from the scope of consolidation due to
diminished material impact on the Company’s business performance
and financial status.
Stylewalker, Inc., merged with TAITO CORPORATION on March 1,
2011.
(2) Names of principal non-consolidated subsidiaries:
hippos lab Co., Ltd. (formerly, SPC 2)
SQUARE ENIX MOBILE STUDIO CO., LTD.
SQUARE ENIX Business Support, CO., LTD.
(Rationale for the exclusion of subsidiaries from the scope of consolidation)
Same as the year ended March 31, 2010.
2. Application of the Equity Method of Accounting
■ Year ended March 31, 2010
Number of equity-method affiliates: 1
ROCKSTEADY STUDIOS LTD.
Brave, Inc., was excluded from the scope of application of the equity
method in this fiscal year owing to the Company’s sale of all shares
held in Brave, Inc.
ROCKSTEADY STUDIOS LTD. was included in the scope of
application of the equity method owing to its acquisition of shares of
EIDOS LTD.
Notes to Consolidated Financial Statements (JPNGAAP)
SQUARE ENIX HOLDINGS CO., LTD. and Consolidated Subsidiaries
36