Square Enix 2012 Annual Report Download - page 53

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51
Tax Effect Accounting
1. Significant components of deferred tax assets and liabilities are summarized as follows:
Millions of yen
As of March 31, 2012 As of March 31, 2011
Deferred tax assets
1) Current assets
Enterprise tax payable ¥ 344 ¥ 212
Business office tax payable 41 46
Provision for bonuses 457 440
Accrued expenses 170 659
Provision for sales returns 122 200
Non-deductible portion of allowance for doubtful accounts 68 88
Tax credits — 503
Loss on write-offs of content production account 3,204 2,237
Loss on inventory revaluation 818 645
Provision for game arcade closings 98 197
Loss carried forward 99 171
Other 218 145
Valuation allowance (444) (863)
Offset to deferred tax liabilities (current) (176) (191)
Total 5,022 4,493
2) Non-current assets
Non-deductible portion of provision for employees’ retirement
benefits 1,395 1,252
Provision for directors’ retirement benefits 82 96
Expense for stock-based compensation 344 336
Non-deductible depreciation expense of property and equipment 123 200
Asset retirement obligations 49 181
Impairment loss 308 424
Loss on evaluation of investments in securities 306 456
Loss on evaluation of stocks of subsidiaries and affiliates 51 —
Non-deductible portion of allowance for doubtful accounts 59 67
Non-deductible portion of excess expenses on lump-sum
depreciable assets 145 219
Loss carried forward, and others, at overseas subsidiaries 845 1,720
Provision for game arcade closings 211 238
Tax credits 119 —
Loss carried forward 59 173
Other 134 443
Valuation allowance (2,556) (2,936)
Offset to deferred tax liabilities (non-current) (1,221) (1,792)
Total 460 1,082
Total deferred tax assets 5,483 5,576
Deferred tax liabilities
1) Current liabilities
Accrued expenses and other cost calculation details 151 190
Other 25 0
Offset to deferred tax assets (non-current assets) (176) (191)
Total — —
2) Non-current liabilities
Non-current assets 1,654 1,544
Tax effects from intangible non-current assets relating to
business combinations 1,804 2,076
Other 367 749
Offset to deferred tax assets (non-current) (1,221) (1,792)
Total 2,605 2,577
Total deferred tax liabilities 2,605 2,577
Balance: Net deferred tax assets ¥ 2,878 ¥ 2,998