Square Enix 2014 Annual Report Download - page 63

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61
Tax Effect Accounting
1. Significant components of deferred tax assets and liabilities are summarized as follows:
Millions of yen
As of March 31, 2014 As of March 31, 2013
Deferred tax assets
1) Current assets
Enterprise tax payable ¥ 207 ¥ 121
Business office tax payable 39 44
Provision for bonuses 552 344
Accrued expenses 632 547
Provision for sales returns 1,106 780
Non-deductible portion of allowance for doubtful accounts 49 94
Tax credits 985
Loss on write-offs of content production account 3,673 4,802
Loss on inventory revaluation 613 711
Provision for game arcade closings 89 97
Loss carried forward 1—
Other 226 268
Valuation allowance (2,260) (1,993)
Offset to deferred tax liabilities (current) (121) (466)
Total 4,819 5,438
2) Non-current assets
Non-deductible portion of provision for employees’ retirement
benefits — 1,729
Net defined benefit liabilities 1,716 —
Provision for directors’ retirement benefits 62 84
Expense for stock-based compensation 121 232
Non-deductible depreciation expense of property and equipment 299 438
Asset retirement obligations 287 284
Impairment loss 324 290
Loss on evaluation of investments in securities 369 303
Non-deductible portion of allowance for doubtful accounts 94 25
Non-deductible portion of excess expenses on lump-sum
depreciable assets 117 182
Loss carried forward, and others, at overseas subsidiaries 1,044 883
Provision for game arcade closings 135 168
Tax credits 29 145
Loss carried forward 58 200
Other 110 325
Valuation allowance (2,304) (2,897)
Offset to deferred tax liabilities (non-current) (1,343) (1,169)
Total 1,125 1,229
Total deferred tax assets 5,945 6,668
Deferred tax liabilities
1) Current liabilities
Accrued expenses and other cost calculation details 115 179
Other 8 286
Offset to deferred tax assets (current) (121) (466)
Total 3—
2) Non-current liabilities
Non-current assets 1,483 1,006
Tax effects from intangible non-current assets relating to
business combinations 1,721 1,779
Other 117 39
Offset to deferred tax assets (non-current) (1,343) (1,169)
Total 1,978 1,655
Total deferred tax liabilities 1,981 1,655
Balance: Net deferred tax assets ¥ 3,963 ¥ 5,012