Square Enix 2014 Annual Report Download - page 48

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46
Changes in Accounting Policy
(Application of accounting standard for retirement benefi ts, etc.)
The Accounting Standard for Retirement Benefi ts (Accounting Standards
Board of Japan [ASBJ] Statement No. 26, issued May 17, 2012, the
“Retirement Benefi ts Accounting Standard”) and the Guidance on Accounting
Standard for Retirement Benefi ts (ASBJ Guidance No. 25, issued May 17,
2012, the “Guidance on Retirement Benefi ts”) were applied from the end of
the fi scal year (provided, however, that they are not applied for the provisions
specifi ed in the main clause of Paragraph 35 of the Retirement Benefi ts
Accounting Standard and the main clause of Paragraph 67 of the Guidance
on Retirement Benefi ts). The accounting treatment method has been changed
so that the amount of retirement benefi t obligations less the fair value of plan
assets is recognized as net defi ned benefi t liability, and the unrecognized
actuarial gains and losses are also recognized as net defi ned benefi t liability.
The application of the Retirement Benefi ts Accounting Standards is
subject to the transitional treatment provided for in Paragraph 37 of the
Retirement Benefi ts Accounting Standard. Consequently, the impact of this
change has been recognized as increases or decreases to remeasurements
of defi ned benefi t plans under accumulated other comprehensive income at
the end of the fi scal year.
As a result, as of March 31, 2014, a net defi ned benefi t liability of
¥4,425 million was posted, while accumulated other comprehensive income
increased ¥432 million.
The impact of this change on net assets per share was insignifi cant.
Accounting Standards Issued but Not Yet Applied
• Accounting Standard for Retirement Benefi ts (ASBJ Statement No. 26,
issued May 17, 2012)
• Guidance on Accounting Standard for Retirement Benefi ts (ASBJ Guidance
No. 25, issued May 17, 2012)
(1) Overview
The standards provide guidance for the accounting methods for
unrecognized actuarial gains and losses and unrecognized prior service
costs, the calculation method of retirement benefi t obligations and service
costs, and the enhancement of disclosures.
(2) Effective dates
The Company will apply the revised calculation method of retirement
benefi t obligations and service costs from the beginning of the fi scal year
ending March 31, 2015.
These accounting standards will not be applied retroactively to
the consolidated fi nancial statements of prior years since transitional
measures are provided for in said accounting standards.
(3) Impact from application of new accounting standard
The impact from application of the new accounting standard is expected to
be insignifi cant.
Change in the Method of Presentation
(Consolidated Statement of Income)
“Loss on evaluation of investment securities” was presented separately
under “Extraordinary loss” in the fi scal year ended March 31, 2013, but
is included in “Other” as of the fi scal year ended March 31, 2014, due to
reduced signifi cance as the amount is not greater than 10 percent of total
extraordinary loss. To refl ect this change in the method of presentation, the
consolidated fi nancial statement for the fi scal year ended March 31, 2013
has been reclassifi ed.
Consequently, the ¥0 million in “Loss on evaluation of investment
securities” recorded under “Extraordinary loss” on the consolidated statement
of income for the fi scal year ended March 31, 2013 has been incorporated
into “Other.”
(Consolidated Statement of Cash Flows)
“Loss (gain) on valuation of investment securities” was presented separately
under “Cash fl ows from operating activities” in the fi scal year ended March
31, 2013, but is included in “Other, net” as of the fi scal year ended March
31, 2014, due to reduced signifi cance. To refl ect this change in the method
of presentation, the consolidated fi nancial statement for the fi scal year ended
March 31, 2013 has been reclassifi ed.
Consequently, the ¥0 million in “Loss (gain) on valuation of investment
securities” recorded under “Cash fl ows from operating activities” on the
consolidated statement of cash fl ows for the fi scal year ended March 31,
2013 has been incorporated into “Other, net.”
Notes to Consolidated Financial Statements (JPNGAAP)