Square Enix 2013 Annual Report Download - page 46

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44
Changes in Accounting Policy
(Change in depreciation method)
The Company and its domestic consolidated subsidiaries have, in accordance with
revisions to the Corporation Tax Act of Japan, changed their depreciation method
for property, plant and equipment acquired on or after April 1, 2012, based on the
revised Corporation Tax Act, effective the fi scal year under review.
Accounting Standards Issued but Not Yet Applied
Accounting Standard for Retirement Benefi ts (Accounting Standards Board
of Japan [ASBJ] Statement No. 26, issued May 17, 2012), and Guidance on
Accounting Standard for Retirement Benefi ts (ASBJ Guidance No. 25, issued
May 17, 2012)
(1) Overview
The method for booking the difference between retirement benefi t
obligations and plan assets has been revised so that actuarial gains
and losses and past service costs that are not yet recognized in profi t or
loss are instead recognized as liabilities or assets, after adjusting for tax
effects, within the net asset section (accumulated other comprehensive
income) on the consolidated balance sheet. In addition, the method of
attributing expected benefi ts to periods of service has been changed to
permit use of the plan’s benefi t formula in addition to the straight-line
method. The discount rate has also been changed.
(2) Effective dates
The Company will apply the revised accounting standard and related
guidance to the consolidated fi nancial statements for the fi scal year
ending March 31, 2014. However, amendments relating to the
method of attributing expected benefi ts to periods service will not be
implemented until the beginning of the fi scal year ending March 31, 2015.
Notwithstanding, this accounting standard will not be applied retroactively
to the consolidated fi nancial statements of prior years since transitional
measures are provided for in said accounting standard.
(3) Impact from application of new accounting standard
The Company expects the application of the Accounting Standard for
Retirement Benefi ts to have a material impact on the consolidated fi nancial
statements of the Square Enix Group. On the balance sheet, net assets will
likely fl uctuate more, mainly because actuarial differences are recognized
immediately in the period in which they occur. Therefore, the Company is
currently assessing the fi nancial impact of the accounting standard on its
consolidated fi nancial statements.
Notes to Consolidated Financial Statements (JPNGAAP)