Nintendo 2008 Annual Report Download - page 30

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26
B. Securities and Derivatives
Securities
Held-to-maturity debt securities are stated using amortized cost method on a straight-line basis.
Other investment securities for which market quotations are available are stated at fair value. Unrealized gains on other
investment securities are recorded as “Valuation difference on available-for-sale securities” in “Net assets” at the net-of-tax
amount, while unrealized losses on other investment securities are included in “Loss on valuation of investment securities” in
“Extraordinary loss”. The cost of investment securities sold is determined based on the moving average cost.
Other investment securities for which market quotations are unavailable are stated at cost, determined by the moving average
method.
Derivatives
Derivatives are stated at fair value.
C. Inventories
Inventories are stated at the lower of cost, determined by the moving average method, or market.
D. Property, Plant and Equipment
The Company and its consolidated subsidiaries in Japan compute depreciation by the declining balance method over the
estimated useful lives except for certain tools, furniture and fixtures depreciated over the economic useful lives. The straight-line
method of depreciation is used for buildings, except for structures, acquired on or after April 1, 1998. Overseas consolidated
subsidiaries compute depreciation by applying the straight-line method over the period of estimated useful lives. Estimated useful
lives of “Buildings and structures”, one of the principal assets, are 3 to 60 years.
E. Intangible Assets
Amortization of intangible fixed assets, except for computer software for internal use, is computed by the straight-line method
over the estimated useful lives. Amortization of computer software for internal use is computed by the straight-line method over
the estimated internal useful lives of mainly five years.
F. Allowance for Doubtful Accounts
The Company and its domestic consolidated subsidiaries provide the allowance for doubtful accounts based on the historical
analysis of loss experience and the evaluation of uncollectible amount on individual doubtful accounts. Overseas consolidated
subsidiaries provide the allowance for doubtful accounts based on the evaluation of uncollectible amount on individual accounts.
G. Provision for Bonuses
The Company and certain consolidated subsidiaries provide the reserve for the estimated amount of bonuses to be paid to the
employees.
Years ended March 31, 2008 and 2007
Notes to Consolidated Financial Statements