Square Enix 2015 Annual Report Download - page 48

46
Changes in Accounting Policy
(Application of accounting standard for retirement benefi ts, etc.)
Effective from the fi scal year ended March 31, 2015, the Company has
applied the provisions specifi ed in the main clause of Paragraph 35 of the
“Accounting Standard for Retirement Benefi ts” (ASBJ Statement No. 26,
issued May 17, 2012, the “Retirement Benefi ts Accounting Standard”) and
the provisions specifi ed in the main clause of Paragraph 67 of the “Guidance
on Accounting Standard for Retirement Benefi ts” (ASBJ Guidance No. 25,
issued March 26, 2015, the “Guidance on Retirement Benefi ts”). Accordingly,
the Company has reviewed the calculation methods for retirement benefi t
obligations and service costs, and has changed the method of attributing
estimated retirement benefi ts to periods from the straight-line basis to the
benefi t formula basis. In addition, the Company has changed the method
of determining the discount rate from using the interest rates of bonds
determined by reference to the maturity closely related to the average
remaining working years of the employees, to using a single weighted
average discount rate that refl ects the estimated timing and amount of
benefi t payments.
With regard to the application of the Retirement Benefi ts Accounting
Standard, in accordance with the transitional treatment provided for in
Paragraph 37 of the Retirement Benefi ts Accounting Standard, the Company
has refl ected the effect of changing the determination methods of retirement
benefi t obligations and service costs in retained earnings at the beginning of
the fi scal year ended March 31, 2015.
As a result, net defi ned benefi t liability at the beginning of the fi scal year
ended March 31, 2015 has decreased by ¥1,811 million, while retained
earnings have increased by ¥1,683 million. The above-mentioned change in
accounting policy had minimal impact on operating income, ordinary income
and income before income taxes and minority interests for the fi scal year
ended March 31, 2015.
The impact of this change on per share information is presented in the
applicable section of these notes.
Accounting Standards Issued but Not Yet Applied
Not applicable
Change in the Method of Presentation
(Consolidated Balance Sheet)
“Income taxes receivable” was presented separately as of March 31, 2014,
but as of March 31, 2015, ¥218 million was included in “Other,” due to a
decrease in its monetary signifi cance. To refl ect this change in the method
of presentation, the consolidated fi nancial statements for the fi scal year
ended March 31, 2014 have been reclassifi ed.
Consequently, ¥288 million in “Income taxes receivable” recorded
in the consolidated balance sheet as of March 31, 2014 has been
incorporated into “Other.”
(Consolidated Statement of Cash Flows)
“Gain on sale of property and equipment” was included in “Other, net,” which
was presented separately under “Cash fl ows from operating activities,” in
the fi scal year ended March 31, 2014, but it is presented separately from
the fi scal year ended March 31, 2015, due to an increase in its monetary
signifi cance. To refl ect this change in the method of presentation, the
consolidated fi nancial statements for the fi scal year ended March 31, 2014
have been reclassifi ed.
Consequently, ¥106 million in “Other, net” recorded under “Cash fl ows
from operating activities” in the consolidated statement of cash fl ows for the
fi scal year ended March 31, 2014 has been reclassifi ed as ¥(2) million in
“Gain on sales of non-current assets” and ¥109 million in “Other, net.”
Notes to Consolidated Financial Statements (JPNGAAP)