Square Enix 2015 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, 2015 As of March 31, 2014
Deferred tax assets
1) Current assets
Enterprise tax payable ¥ 381 ¥ 207
Business office tax payable 36 39
Provision for bonuses 531 552
Accrued expenses 599 632
Provision for sales returns 1,328 1,106
Non-deductible portion of allowance for doubtful accounts 40 49
Tax credits 275 9
Loss on write-offs of content production account 2,847 3,673
Loss on inventory revaluation 507 613
Provision for game arcade closings 125 89
Loss carried forward —1
Other 221 226
Valuation allowance (1,888) (2,260)
Offset to deferred tax liabilities (current) (188) (121)
Total 4,818 4,819
2) Non-current assets
Net defined benefit liabilities 713 1,716
Provision for directors’ retirement benefits 50 62
Expense for stock-based compensation 104 121
Non-deductible depreciation expense of property and equipment 129 299
Asset retirement obligations 307 287
Impairment loss 386 324
Loss on evaluation of investments in securities 242 369
Non-deductible portion of allowance for doubtful accounts 494
Non-deductible portion of excess expenses on lump-sum
depreciable assets 78 117
Loss carried forward, and others, at overseas subsidiaries 989 1,044
Provision for game arcade closings 136 135
Tax credits 60 29
Loss carried forward 36 58
Other 72 110
Valuation allowance (677) (2,304)
Offset to deferred tax liabilities (non-current) (1,435) (1,343)
Total 1,198 1,125
Total deferred tax assets 6,016 5,945
Deferred tax liabilities
1) Current liabilities
Accrued expenses and other cost calculation details 180 115
Other 78
Offset to deferred tax assets (current) (188) (121)
Total —3
2) Non-current liabilities
Non-current assets 1,946 1,483
Tax effects from intangible non-current assets relating to
business combinations 1,647 1,721
Other 213 117
Offset to deferred tax assets (non-current) (1,435) (1,343)
Total 2,371 1,978
Total deferred tax liabilities 2,371 1,981
Balance: Net deferred tax assets ¥ 3,644 ¥ 3,963